Moving from NYC to Florida: tax residency, your home sale and the move

One limit on what this site can do: the agents we introduce are in New York, and they can help with the New York City sale only. They do not represent buyers or sellers in Florida, so you would need a separate Florida agent for a purchase there.

None of this tells you whether Florida is the right place. It is a place many New Yorkers consider, and the questions below apply to any move out of state. If you are still comparing places, our where to downsize pages cover neighborhoods in all five boroughs, and the senior housing options guide covers housing that keeps you in the city.

Changing your domicile from New York

The state's Department of Taxation and Finance defines domicile as your permanent and primary residence that you intend to return to or remain in after being away, and says you can have only one, per its income tax definitions. A person domiciled in New York is a New York resident for income tax purposes.

To change it, the state's residency FAQs say you must show with clear and convincing evidence that you abandoned your New York domicile. They add that filing a certificate of domicile or registering to vote in the new place is not enough, because all aspects of a person's life are considered. In practice that means thinking about where you really live, not only where the paperwork says.

The state lists no checklist that guarantees a result, so do not treat any list from a blog as a safe harbor. Ask your tax adviser which facts matter in your case and keep dated records of the move.

NY statutory residency: 183 days and a permanent place of abode

Separate from domicile, New York has a day-count test. You are treated as a resident if you maintain a permanent place of abode in the state for substantially all of the taxable year and spend 184 days or more in New York, which means more than 183 days. Any part of a day counts as a day, per the state's definitions.

A permanent place of abode is a residence you permanently maintain, whether you own it or not, that is suitable for year-round use. The state's FAQs say you do not have to be at the place of abode for a day to count as a day in New York. So an owner who keeps a New York City apartment after moving and spends many days in the city can be a statutory resident even if their domicile is in Florida.

That is why what you do with your New York home matters. Selling it, or no longer maintaining it, bears on the abode question. The state's bulletin on permanent place of abode explains the term in more detail. If you are weighing keeping the home as a rental instead, see sell or rent out your NYC home.

New York nonresident audit questions

People who leave New York often hear that the state audits departures. This guide cannot say how likely an audit is, and the state publishes no such figure. What the state does publish is that residency turns on all aspects of your life, and its residency FAQs point to nonresident audit guidelines for the documentation it looks at.

Questions worth thinking about before you move, and discussing with a professional:

• Where will your main home be, and what will it be used for in practice?
• Do you keep a New York home, and how many days a year will you spend in New York?
• Where will your doctors, accounts, vehicles and family connections be?
• Can you show your day counts with dated records?
• Are you changing your filing status with the state for the year you move?

If you get a letter from the state, do not ignore it. A New York tax attorney or CPA can respond.

Selling your NYC home before or after you move

Whether to sell first or move first is a timing question with tax consequences. Our buy first or sell first guide covers the general trade-offs. For a New York sale, one form matters if you have already left.

Form IT-2663 for nonresident sellers

A nonresident individual selling New York real property must estimate New York income tax on the gain and pay it with the deed at recording, using Form IT-2663, unless an exemption applies. One exemption is when the property qualifies in total as the seller's principal residence under section 121, even if the gain is above the exclusion. A resident at the time of sale is not subject to it. A co-op stock sale by a nonresident uses a different form, IT-2664. The details are in the IT-2663 instructions. The seller may still have to file a New York return.

The two sides, in general terms

The federal exclusion of up to $250,000 of gain, or $500,000 on a joint return, requires 24 months of ownership and use in the five years before the sale, per IRS topic 701. Our capital gains guide and the net proceeds calculator help you see the sale's numbers, and estimating net proceeds explains the costs. The agents we introduce can help with this sale, and your CPA should confirm the tax side before you decide on timing.

The Florida homestead exemption

If you buy a home in Florida and make it your permanent residence, the Florida Department of Revenue says you may be eligible for a homestead exemption that can lower the property's taxable value by as much as $50,000. You apply through the property appraiser in the county where the property is located, per floridarevenue.com. The page also describes portability, which lets some homeowners move part of an assessment difference to a new Florida homestead, but that applies to people who already have a Florida homestead.

A homestead application is also one of the records that can show where your life is centered, but it is not a substitute for the rest, as the state's residency guidance makes clear. For the rules and deadlines in the county you choose, ask that county's property appraiser. Our guide on New York senior property tax exemptions explains what you would give up when you leave a New York home.

Hiring interstate movers: Protect Your Move

A move from New York to another state is an interstate move, and the Federal Motor Carrier Safety Administration runs a program called Protect Your Move to help people avoid moving fraud. Two things it offers are worth using before you sign anything:

• Look the mover up in FMCSA's registered mover database.
• Read the booklet on your rights and responsibilities when you move, which interstate movers are required to give you.
• Get written estimates from more than one mover, and ask each one how its estimate was prepared.

Moving day in the city has its own issues, from elevator reservations to certificates of insurance, which our guide to moving day in New York City covers. For selling what will not travel, see estate sale, consignment or donation.

What to sort before you leave

A move out of state is a good moment to cut down what you carry. Movers charge for what they load, and a smaller load is easier to estimate. Start with the rooms you use least, and decide early what goes to family, what is sold or donated and what is shipped. Our guide on downsizing tips has a room-by-room approach.

Keep the papers you will need in one place that travels with you, not on the truck: closing documents, tax records, identification and your dated record of where you spent your days. Your adviser may ask for them to answer residency questions later.

A moving checklist

• Talk to a New York tax professional about domicile and statutory residency before you move.
• Decide what happens to your New York home, and when.
• If you sell as a nonresident, ask your attorney and CPA about Form IT-2663 or IT-2664.
• Keep a dated record of where you spend your days.
• Ask the Florida county property appraiser about the homestead exemption.
• Vet your interstate mover with FMCSA's tools.

If you are not set on Florida, where to downsize covers options closer to home, and 55+ communities explains what to ask about them. The costs and money page and resources help you plan, and the step-by-step downsizing guide puts the sequence in order. When you are ready to talk about selling your New York City home, get matched. Introductions go to agents on the operating team at eXp Realty, and they work in New York only.