As you start thinking about retiring, it may also be time to start thinking about changing state residency. Florida has been a favorite of many of our clients not only due to the climate and lifestyle, but also because of the favorable tax rules. Florida doesn’t impose an individual income tax.
Here are some guidelines on the steps necessary in order to become Florida residents:
- Sign and file Declaration of Domicile with the Clear of the Circuit Court. Send copies of the declaration to the taxing and voting registration officers in your former state to evidence your change in residence
- Obtain a Florida Drivers license within 30 days after you file a Declaration of Domicile, file an application for homestead exemption (done in the county tax evaluators office), and/or register to vote. There is a one-time fee of $350 to obtain a Florida driver’s license. I think this is true for all counties in Florida.
- Register your auto in Florida which can be done at the County Tax Collector’s office. You need to have a previously issued registration or vehicle ID number, make, model, proof of insurance and a driver’s license.
- Register to vote in Florida which can be done when you get your Florida driver’s license. Exercise this right to vote on a regular basis.
- Advise your former state of change in Domicile – at the local and state taxing authorities. If you have a homestead exemption in your former state, take steps to have it terminated or removed.
- Apply for Florida Homestead Exemption between January 1st and March 1st of the current year. This exempts you from taxation on the first $50,000 valuation on your home. You need to take with you the recorded copy of your Declaration of Domicile or Florida Voter’s Registration ID card, Florida Driver’s license, registration for your auto and a copy of the recorded deed for your property and a current electrical receipt for service in your name.
- File the Federal tax return as a Florida resident.
- Lastly, establish additional relationships with Florida, such as financial advisors, obtain a safe deposit box, support local charitable causes – this helps evidence a person’s legal place of residence or domicile.
If you would like to learn more about the tax implications of moving to Florida or would like to learn more about Paresky Flitt services, please contact Rebecca DeWolfe.