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PaperclipPerfector  5d ago (text post)   15979 thread views

Culture War Roundup for the week of June 1, 2026

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Avoiding having NJ as your domicile is easy; you just establish one somewhere else.

While in theory it's just a matter of establishing a domicile somewhere else, in practice I don't think it's that easy.
Here's an article which claims that for purposes of domicile, a past domiciliary must NOT maintain a permanent home in New Jersey:

https://www.domicile365.com/Articles/New-Jersey-State-Tax-Residency.html

I'm not sure how accurate the article is, but it's important to keep in mind that in high tax jurisdictions like New York, California, and New Jersey, the authorities are very hostile to claims that a person has moved out of the state, particularly if they have gone somewhere like Florida or Texas. If there is an indication that you are trying to move "on paper," it's going to be a challenge to avoid the taxes.

No, it says that IF New Jersey is your domicile, you can avoid being a resident for tax purposes by not maintaining a permanent home in New Jersey, maintaining a permanent home somewhere else, and spending less than 30 days in New Jersey. This would apply mostly to students and military, I think, though possibly some people on temporary job assignments -- e.g. if you take a 1-year assignment in Dubai where you rent a place to live, but intend to return to New Jersey, you might be still domiciled in New Jersey, but not a resident for tax purposes.

Since you only have one domicile at a time, it's easy to satisfy the domicile test by setting up a domicile elsewhere.

Since you only have one domicile at a time, it's easy to satisfy the domicile test by setting up a domicile elsewhere.

In theory this is correct, but in practice -- as I mentioned above -- you are dealing with hostile and aggressive tax authorities. Here is an excerpt from one article:

To successfully change residency from New Jersey or New York to Florida, taxpayers should take the following steps:

Sell or rent out the property located in the former domicile. Simply owning property in a taxpayer’s former domicile does not automatically make one a resident; however, maintaining significant ties to these states can. Selling or renting out the property in an arms-length lease is perhaps the strongest evidence of a taxpayer’s intent to abandon their former domicile.

https://www.njcpa.org/article/2024/12/03/moving-to-florida--tax-considerations-and-pitfalls

Generally speaking, a taxpayer’s domicile is the place the taxpayer considers their permanent home, and those domiciled in New Jersey will be considered New Jersey residents for tax purposes. While a taxpayer cannot have two domiciles, their domicile will not be changed until the former state of residence is abandoned. Thus, a taxpayer will be considered domiciled in Florida if he or she is able to prove two elements: (1) the taxpayer must change his or her actual state of residence; and (2) the taxpayer must show an intent to abandon the former state of residence. The taxpayer bears the burden of proving each element by “clear and convincing evidence.” Because this is a subjective “facts and circumstances” test which focuses on the intent of the taxpayer, taxpayers wishing to change their domicile must carefully plan their move, and their actions should evidence a change in domicile. The following is a non-exhaustive list of factors which should be considered when changing domicile:

  1. Sell or lease any property in New Jersey, if possible.

https://summitfinancial.com/wp-content/uploads/2023/06/NJ-to-FL-Domicile-Change-6.20.23.pdf

And here is an article regarding the burden of proof:

Critically, the party asserting a change of domicile has the burden to prove, by clear and convincing evidence, that the taxpayer abandoned his or her historic domicile and moved to the new location with the intent to remain there permanently.

https://www.hodgsonruss.com/assets/htmldocuments/Residency%20Audit%20Booklet%20-%201.6.23.pdf

So in practice, if you hold on to your New Jersey residence and set up a domicile somewhere like Florida or Texas, you can expect a very aggressive and hostile audit. There's a real risk that an auditor (and an administrative law judge) will simply decide not to believe you when you swear up and down that you really truly intended to leave the state and set up a domicile elsewhere.

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