Relocating to Florida comes with numerous perks: no state income tax, beautiful weather, and a high quality of life. However, one of the most persistent myths surrounding Florida residency is the belief that living in the state for "six months and a day" is all it takes to establish residency. While this phrase is commonly cited, it is misleading and can lead to significant tax headaches if misunderstood.
In this article, we’ll debunk the six-month myth, explain the real factors that determine residency, and provide actionable steps to solidify your move to Florida—legally and effectively.
Why "Six Months and a Day" Is a Myth
Contrary to popular belief, Florida does not have a requirement that you must reside in the state for six months and one day to establish residency. Instead, it is the state you are leaving—not Florida—that wants to continue taxing you. States like New York, Minnesota, Wisconsin, Illinois and California use a variety of methods to determine whether they can still claim you as a resident for tax purposes.
What Really Determines Residency?
Establishing Florida residency isn’t as simple as spending more than half the year in the Sunshine State. While the number of days you spend in Florida is important, it’s just one factor. Other considerations include:
- Primary Home Ownership: Do you own or lease a primary residence in Florida, or are you still maintaining a home in your former state?
- Driver’s License and Vehicle Registration: Have you transferred your driver’s license and registered your vehicles in Florida?
- Voter Registration: Are you registered to vote in Florida?
- Financial Accounts: Have you moved your bank accounts to Florida?
- Professional Licenses: Have you updated professional licenses and certifications to Florida?
- Tax Filings: Have you filed a Declaration of Domicile or other documents to establish intent?
- Estate Planning Documents: Was your will or trust established in your former state, or have you updated it to Florida?
- Affiliations: Are you actively involved in Florida’s community, such as religious or social organizations?
Failing to address these factors can leave the door open for your previous state to challenge your new Florida residency, potentially resulting in cotinued taxation.
How States Try to Keep You as a Taxpayer
Leaving a high-tax state like New York or Minnesota isn’t as simple as it sounds. These states have a vested interest in continuing to tax you, especially if you’re a high-net-worth individual. Here’s how they might try to retain you as a taxpayer:
1. The 183-Day Rule
Many states use the 183-day rule as a threshold for determining tax residency. If you spend 183 days or more in the state, they may claim you as a resident. However, they will also look at other factors, such as:
- Do you still own property in the state?
- Are your family members (such as children or a spouse) still living in the state?
- Do you maintain memberships or subscriptions tied to your old state?
2. "Statutory Residency"
Some states apply a concept known as "statutory residency," which allows them to tax you if you maintain a home in the state and "appear" to live there for part of the year. This can apply even if you spend less than 183 days in the state.
3. Audits and Challenges
High-tax states often audit individuals who claim to have relocated. They’ll examine credit card statements, utility bills, travel records, and other documentation to argue that you’ve maintained ties to your previous state.
Steps to Establish Florida Residency
While this is not an exhaustive list, here are some steps you can take to make your move to Florida from a legal and tax perspective:
1. File a Declaration of Domicile
This document, filed with the county clerk, states your intent to make Florida your permanent home. It’s one of the simplest and most effective ways to demonstrate your residency.
2. Update Your Driver’s License and Vehicle Registration
Florida requires new residents to transfer their driver’s license and vehicle registration within 30 days of establishing residency. Doing so signals your commitment to living in the state.
3. Register to Vote in Florida
Voter registration is another key indicator of residency. Be sure to cancel your voter registration in your former state.
4. Move Your Financial Accounts
Switch your banking relationships to Florida-based institutions and update your billing addresses to your new Florida address.
5. Purchase or Lease a Primary Residence
Owning or leasing a home in Florida strengthens your claim of residency. Apply for the Florida homestead exemption to reduce your property taxes and protect your home from creditors.
6. Build Local Ties
Join local organizations, establish a relationship with Florida-based healthcare providers, and engage in community activities to demonstrate your intent to reside permanently in the state.
7. Maintain Detailed Records
Keep meticulous records of your time spent in Florida versus your former state. Use calendars, receipts, and travel itineraries to document your physical presence.
8. Update Your Estate Planning Documents
If you have a will or trust, you will want to update it to Florida law. Not only can this help to prove your residency for tax purposes, you will need to do this as part of maintaining your Florida homestead if you have a trust. If you do not have an estate plan, you will want to create one as part of your move to the sunshine state.
Case Study: When Six Months and a Day Backfires
Meet Jane and John
Jane and John were long-time residents of Minnesota who decided to retire to Florida. They believed that spending six months and one day in Florida each year was sufficient to avoid Minnesota taxes. However, they kept their Minnesota home, frequently returned to visit family, and continued using their Minnesota bank accounts.
When audited, Minnesota determined that Jane and John were still residents. for tax purposes They faced unexpected tax bills and penalties, erasing the financial benefits they’d hoped to gain.
Avoiding Common Pitfalls
To ensure your Florida residency is unassailable:
- Cut Ties Completely: Sell or significantly reduce ties to your former state.
- Follow the Rules: Meet Florida’s requirements for licenses, registrations, and domicile declarations.
- Be Proactive: Work with an experienced estate planning attorney to avoid pitfalls.
If you’re considering a move to Florida or want to ensure your residency is established correctly, we’re here to help. Call our Minnetonka, MN office at 763-420-5087 or our Florida office at 941-909-4644 to schedule a consultation. Alternatively, fill out the contact form on this page, and a member of our team will reach out to schedule your consultation.
If you are not yet ready to schedule a consultation, but would like some more information, grab a copy of my book, The Florida Snowbird Guide: A Fast & Friendly Legal Guide for Florida Relocation and Snowbirds. Click here to purchase a paperback copy on Amazon, or you can click here to download a digital version for free.
