How do you maintain state residency when living abroad?
Mia Phillips
Updated on March 15, 2026
3 Easy Steps to Change Your State Residency When Moving Overseas
- Step 1: Abandon Domicile in Your Current State of Residency.
- Step 2: Establish a New Domicile in the Desired State Prior to Your Move.
- Step 3: Cut All Possible Ties After Changing Your State Residency.
Do I need to file state return if I live abroad?
Unlike almost everywhere else in the world, American expats still need to file U.S. income taxes while living abroad—and that also may include state taxes. The fact is, if you remain a U.S. citizen or green card holder who works abroad, you are still required to file U.S. taxes and report your income every year.
Do you have to pay state taxes when you live abroad?
State residency while living abroad is a tricky topic. Each state has different definitions of who qualifies as a resident and some states (like Florida) don’t even have income tax requirements. On the other end of the spectrum are states (like New York) that require you pay expat state taxes on income earned worldwide.
What happens if you are not a resident of a state?
If you are not a resident of a state they cannot tax your world income , just in-state sourced income. I would suspect though that if you have previously filed MA returns and now don’t , they will send you a notice of non-filing.
Can a Virginia resident live in another country?
The Virginia tax authorities make clear that if you are a Virginia resident who takes on employment in another country or leaves the United States for any other purpose, the fact that you are living abroad does not mean that you are no longer considered a resident for State income tax purposes.
Can a domicile be in a foreign country?
For example, the State of Maryland takes the position for its income tax laws that a person may be “legally prohibited” from establishing a domicile in a foreign jurisdiction because of immigration or visa restrictions imposed by the foreign country.