Leaving New York requires careful planning to ensure a clean break from the state’s tax jurisdiction. This checklist covers the essential steps to change your domicile, avoid statutory residency, and minimize audit risk.
6-12 Months Before Your Move
☐ Decide on your new domicile state
- Research tax implications
- Visit potential locations
- Consider family, business, and lifestyle factors
☐ Document your intent
- Write a memo to yourself explaining why you’re moving
- Discuss your plans with family and advisors
- Create a timeline for your transition
☐ Plan your New York property disposition
- Decide whether to sell, rent, or terminate your lease
- If keeping property, understand statutory residency implications
- Get property appraised if selling
☐ Review business and professional ties
- Identify NY business connections that need to be severed
- Plan transition of business operations
- Notify clients and vendors of your move
☐ Consult with tax and legal advisors
- Understand tax implications of your move
- Plan timing of income recognition (equity comp, bonuses, etc.)
- Review estate planning documents
30-60 Days Before Your Move
☐ Purchase or lease residence in new state
- Buy a home of comparable or greater value than your NY residence
- Sign a long-term lease (not short-term or month-to-month)
- Make it suitable for year-round living
☐ List or terminate your NY residence
- Put your NY home on the market
- Give notice to your landlord
- If keeping property, arrange to rent it to third parties
☐ Transfer near and dear items
- Move family heirlooms, artwork, and sentimental items
- Relocate pets to your new state
- Transfer valuable collections
☐ Update official documents
- Apply for driver’s license in new state
- Register to vote in new state
- Update passport to show new address
☐ Notify employers and financial institutions
- Update W-4 for state withholding
- Change address with banks and investment accounts
- Update insurance policies
Moving Day and First 30 Days
☐ Physically relocate
- Move your belongings
- Bring your family and pets
- Establish residence in new state
☐ Obtain new state identification
- Get driver’s license (surrender NY license)
- Register vehicles in new state
- Register to vote
☐ Establish local connections
- Open local bank accounts
- Join local organizations (church, gym, clubs)
- Find local doctors, dentists, and service providers
- Get library card and other local memberships
☐ Update all addresses
- USPS change of address
- Credit cards and financial accounts
- Professional licenses and memberships
- Subscriptions and services
- IRS and state tax authorities
☐ Sever New York ties
- Close or minimize NY bank accounts
- Resign from NY clubs and organizations
- Cancel NY memberships (gym, country club, etc.)
- Terminate NY professional affiliations where possible
First Year in New State
☐ Limit time in New York
- Track days in NY carefully
- Stay well under 183 days
- Maintain contemporaneous calendar
☐ Build life in new state
- Establish professional connections
- Develop social relationships
- Join community organizations
- Participate in local activities
☐ Maintain documentation
- Save all receipts showing location
- Keep travel records
- Document local activities and connections
- Preserve evidence of time spent in new state
☐ File correct tax returns
- File as nonresident of NY (if you’ve changed domicile)
- File as resident of new state
- Report NY source income correctly
- Claim credit for taxes paid to other states
☐ Update estate planning
- Review wills and trusts
- Update beneficiary designations
- Consider new state’s estate tax laws
- Revise powers of attorney
Ongoing Maintenance
☐ Continue building new state connections
- Deepen professional and social ties
- Invest in local real estate or businesses
- Participate in community activities
- Maintain consistent presence
☐ Minimize New York presence
- Limit visits to family/friends
- Avoid maintaining NY business operations
- Don’t keep property available for your use
- Stay under 183 days every year
☐ Keep records
- Maintain day count documentation
- Save evidence of new state connections
- Preserve records for at least 3 years
- Be prepared for potential audit
Red Flags That Trigger Audits
The DTF is more likely to audit if you:
- Had high income as a NY resident
- Filed as a resident for many years then suddenly claimed nonresident status
- Maintained a valuable NY residence
- Have ongoing NY business income
- Spent significant time in NY after your claimed move
Special Considerations
If you’re married:
- Both spouses should move together
- If one spouse stays in NY, you may both be NY residents
- Consider filing separately if circumstances require split residency
If you have children:
- Move children’s schools to new state
- Establish pediatrician and activities in new state
- Don’t leave children in NY schools while claiming to have moved
If you own a business:
- Relocate business operations to new state
- Change business registration and licenses
- Move business bank accounts
- Establish new state nexus
If you have NY rental property:
- This doesn’t prevent domicile change
- You’ll still have NY source income
- File nonresident return reporting rental income
Documentation to Maintain
Keep evidence of:
- Property purchase/sale in new state
- Utility bills showing usage patterns
- Credit card statements showing spending locations
- Cell phone records
- Travel itineraries
- Medical and veterinary appointments
- Club memberships and activities
- Voter registration and voting records
- Driver’s license and vehicle registration
Timeline for Audit Risk
The DTF can audit your residency status for:
- The year you claim to have moved
- The two years before
- The two years after
Maintain documentation for at least 5 years after your move.
Our Exit Planning Service
We help clients plan their New York exit by:
- Reviewing the five domicile factors before you move
- Creating a customized exit checklist
- Advising on timing and sequencing of steps
- Identifying potential audit triggers
- Setting up documentation systems
- Preparing you for potential future audits
Don’t leave New York without a plan. The cost of getting it wrong—years of audit exposure and potential six-figure tax bills—far exceeds the cost of proper planning.
