State taxes after you move abroad: domicile rules

Uncle Sam's return follows you everywhere; your state return follows you only if your old state still thinks it's home.

The short version

Most states tax their residents on worldwide income, and many define a resident as someone domiciled there, even if they live overseas.
Domicile is the place you intend to return to. You keep your old one until you clearly adopt a new one, and moving abroad "for a few years" often doesn't count.
California treats you as a nonresident under a safe harbor only if you're abroad on an employment-related contract for at least 546 consecutive days [1]. Everyone else is judged on facts and circumstances.
New York has a "548-day rule" that can make a domiciliary a nonresident if they spend at least 450 days in a foreign country in a 548-day period [3].
Virginia says plainly that living abroad does not end Virginia residency unless you've established legal residence elsewhere [5].

Why a state can keep taxing you

The federal government taxes US citizens because they're citizens. States don't get to play that card. They tax people because they're residents, and each state writes its own definition. The common pattern has two prongs:

Domicile. Your legal, permanent home: the place you intend to come back to after any absence.
Statutory or "actual" residence. Physical presence or a home in the state for a large part of the year, usually more than 183 days.

When you move to Lisbon or Tokyo, you usually stop being a statutory resident fast. Domicile is different. In most states, you keep it until you both leave and show that you've abandoned it. New York's audit guidelines say the person claiming a change has to prove it by "clear and convincing" evidence, and that informal conduct counts for more than formal declarations like voter registration [4].

That's the trap. A foreign country can't become your US state domicile, so many states figure an American abroad who hasn't settled in another state is still theirs. Think of it as the state keeping your room just the way you left it.

How the hardest states treat people abroad

State	Who counts as a resident	Rule that can help you abroad	Watch out for
California	Anyone domiciled there and away for a "temporary or transitory purpose," or anyone present for other than a temporary purpose [1]	Safe harbor: abroad on an employment-related contract for at least 546 consecutive days; return visits up to 45 days a year are treated as temporary [1]	Doesn't apply with intangible income over $200,000 in a year, or if the main purpose is to avoid tax [1]. Federal foreign earned income exclusion is added back for California [2]
New York	Domiciled in New York, or a permanent place of abode for substantially all the year plus 184 days or more in the state [3]	Group B (548-day rule): 450+ days in a foreign country in any 548 consecutive days, and 90 days or fewer in New York for you, your spouse and minor children [3]	Day limits are prorated for partial years [3]. You still have to prove where your domicile is
Virginia	Domiciliary residents, and actual residents present or with a place of abode for more than 183 days [5]	Virginia applies the same Section 911 foreign earned income exclusion you claim federally [5]	Living abroad doesn't end residency unless you've set up legal residence in another state [5]

These are the rules for the 2025 tax year in California's Publication 1031 [1] and in the current New York and Virginia guidance [3][5]. Other states, including some in the Southeast and Southwest, are also known for holding on to domiciliaries; check your own state's tax office page on residency before you assume you're off the hook.

California in more detail

California's test is "closest connections." Publication 1031 lists the factors: time spent in and out of the state, where your spouse and children live, your principal residence, driver's license, vehicle registration, voter registration, bank accounts, professional licenses, doctors, social ties and real property. It also says it's "the strength of your ties, not just the number of ties" that decides [1].

The 546-day safe harbor only covers absences under an employment-related contract. If you retire to Mexico or move to Spain on a digital nomad visa, the publication says your status is decided on the facts and circumstances [1]. Your spouse or registered domestic partner gets nonresident treatment too when they go with you for the whole period [1].

One more California point: the state does not follow the federal exclusion for foreign earned income, which is up to $130,000 for 2025 and $132,900 for 2026 [6]. Its Schedule CA (540NR) instructions have you add the excluded amount back [2]. So if you stay a California resident, Sacramento can tax your foreign salary even when it's tax-free federally. That's real sticker shock.

New York in more detail

New York's definitions page gives two exceptions for domiciliaries [3]:

Group A: no permanent place of abode in New York for the year, a permanent place of abode outside New York for the whole year, and 30 days or fewer in New York.
Group B (the 548-day rule): at least 450 days in a foreign country during any 548 consecutive days, and 90 days or fewer in New York for you, your spouse (unless legally separated) and minor children in that period.

If you meet either group, you're a nonresident for those years even if your domicile hasn't changed. But a permanent place of abode "usually includes a residence your spouse owns or leases" [3], so a spouse who stays behind in the Brooklyn apartment can sink Group A in one move.

How to break domicile

There's no form that ends domicile, and no farewell party at the state tax office. You build a paper trail that shows you left for good. A US expat tax preparer (or lawyer) can check your situation, but these steps carry weight in most states:

Decide if you're really leaving. Every state looks at intent. If you plan to come back in two years to the same house, a tax office will likely see a temporary absence.
Sell or rent out the home on arm's-length terms. Keeping a furnished home that's ready for you is the classic sign of continuing domicile. If you rent it to strangers on a lease, you have rental income to report, but a weaker tie.
Move the "near and dear" items. New York's guidelines look at where sentimental and valuable possessions are kept [4]. A storage unit full of family heirlooms in Albany doesn't help.
Cut state paperwork. Surrender or let go of the driver's license, vehicle registration and professional licenses where you can. Your last trip to the DMV may be the most useful one you ever make. Change the address on bank and brokerage accounts.
File a final part-year resident return. It states the date you left and starts the clock on the state's review.
Keep a travel log. Day counts matter in New York and California [1][3]. Passport stamps, boarding passes and a simple spreadsheet will save your bacon later.
Watch your voter registration. Voting from abroad is a federal right, and the state you vote in is usually your last US address. Ask your state election office or FVAP how a federal-only ballot is treated where you are.

What if you can't cut ties?

Some people need a US anchor stateside: a mailing address for a bank, a license to drive on visits home for Thanksgiving. If you're going to keep one, consider moving it to a state with no broad personal income tax, such as Florida, Texas, Nevada, South Dakota or Wyoming, before you leave. Moving there for real (a lease, a license, a voter registration, actual time spent) is what changes domicile. A mailbox alone may not convince your old state. Tax auditors have seen that move before.

State returns you may still owe after a clean break

Breaking domicile ends tax on your worldwide income. It doesn't end tax on income earned in the state, so read the fine print:

Rental property in your old state is usually taxed there as nonresident income.
Wages for work done in the state during visits can be taxable there.
Sale of real property in the state is generally taxed by that state.

California, for example, uses Schedule CA (540NR) to split California-source income from everything else [2].

Common mistakes

Assuming a foreign address ends residency. Virginia says outright that it doesn't [5].
Forgetting the state doesn't allow the exclusion. California adds back the foreign earned income exclusion [2], and other states differ. Your federal tax may be zero while your state tax isn't.
Leaving a spouse and kids behind. Both New York and California give family location heavy weight [1][4].
Coming back too often. California's safe harbor allows 45 days of return visits a year [1]; New York's Group B allows 90 days over 548 [3]. Long summers back home add up fast.
Ignoring old years. If your state never got a part-year return, it may treat you as a resident for every year since you left.

If you're not sure where you stand, ask in our community groups for Americans abroad, where people from the same states compare notes.

State taxes after you move abroad: why your old state may still want a return