Texas offers its residents several favorable benefits.
We do not have an individual income tax, we do not impose an estate or inheritance tax, and we provide extremely generous protection to individuals from creditor claims.
To share in this good fortune, you just have to be domiciled within our state. “Domicile” is a legal term. It means that you have a true fixed and permanent home and principal establishment in Texas. Whenever you are absent from your Texas home, you must have the intention of returning to it.
Whether you meet the legal definition of domicile depends upon your actions.
You have to take steps to show that your intent is to be domiciled in Texas. It is not enough to merely move here; your actions must show that you have the professed desire to remain here. This is critical if you own real property, such as a vacation home or a previous residence, in another state.
How do you prove intent? Here are a few suggestions.
Obtain a Texas driver’s license or identification card. File your federal income tax return using your Texas address. Acquire Texas license plates for your car. Register to vote in Texas.
Register your boat, motorcycle or other toy in Texas. Change your primary care physician to one in Texas. Notify your employer (if you have one) that your primary address is in Texas. If you are a member of a professional society, alumni association, or other organization, go online and change your home address and contact information to your Texas address.
Become involved in a local branch of a charity or join a service organization such as Rotary, Kiwanis or the Lions Club. Attend a neighborhood church or synagogue and, if it is part of the protocol, formally move your letters or membership.
Was your business incorporated in another state? Consider registering it in Texas as a foreign corporation or merging it with a Texas business.
If you are a trustee, read the Trust document and consider changing the place of administration and applicable law to Texas.
If you buy a home here, either put it in your name or in the name of an entity that is formed, formally doing business in or registered in Texas. Open utilities in your name and list your Texas address for billing.
Change the billing address on your credit cards to your Texas address. Keep a calendar of the days you spend in Texas; your goal is to spend at least 183 days here every calendar year.
Sign a Declaration of Domicile before a notary public. This formally declares your intent that Texas is your domicile.
Do this and you have a pretty good argument that you reside in Texas and that you intend to continue residing here. Note, however, that this may not be enough to convince the IRS and other states. They may consider that you are a part-time resident in multiple states, and try to tax you accordingly.
Virginia Hammerle is President of Hammerle Finley Law Firm and is a 1982 graduate of Southern Methodist University Dedman School of Law. Sign up for her newsletter at[email protected].
FAQs
To establish domicile, you must meet the following criteria:
- Live in Texas for 12 consecutive months by the application deadline; and.
- Establish and maintain domicile for 12 consecutive months prior to the application deadline, by doing one of the following: Be gainfully employed in Texas.
According to the rule, if you spend at least 183 days of a year in a state — even if you have established your domicile in another state — you are considered a resident of the state for tax purposes. There are a few important factors to consider with this rule. The first is that any part of a day counts as a full day.
What is the difference between residence and domicile in Texas? ›
While a residence is merely the place where you currently live, Texas law defines “domicile” as the place where you have an intent to make your fixed and permanent home (Schreiner v. Schreiner, Tex. Civ. App., 502 SW2d 840 (1973).)
How long do you have to live in Texas to be a legal resident? ›
Live in Texas for at least 12 months if you aren't a dependent.
What is the best proof of residency? ›
A utility bill, credit card statement, lease agreement or mortgage statement will all work to prove residency. If you've gone paperless, print a billing statement from your online account.
What is proof of domicile in Texas? ›
(e) Acceptable proof of domicile documents are: (1) A current deed, mortgage, monthly mortgage statement, mortgage payment booklet, or a residential rental/lease agreement. (2) A valid, unexpired Texas voter registration card. (3) A valid, unexpired Texas motor vehicle registration or title.
When can you legally leave home in Texas? ›
In Texas, parents and guardians are legally responsible for their children until age 18 – unless emancipation has been granted. If a parent reports their 17-year-old child as a runaway and the teen is subsequently identified by a peace officer, law enforcement can return them home until age 18.
What is the rule 10 of the Texas Rules of Civil Procedure? ›
An attorney may withdraw from representing a party only upon written motion for good cause shown.
What is the unlimited hours rule in Texas? ›
With only extremely narrow exceptions relating to certain regulated industries or collective bargaining agreements, adults, as well as youths ages 16 or 17, may work, and/or may be required to work, unlimited hours each day (the only limits are employee morale, practical realities, and common sense in general).
What is the fastest way to become a resident of Texas? ›
A citizen, national or a permanent resident of the United States, who is independent 18 years of age or over and who has lived in Texas for 12 consecutive months and has been gainfully employed within the state prior to enrollment in an institution of higher education is entitled to be classified as a resident of Texas ...
To verify Texas residency, an individual must present two printed documents from the list below. Both documents must contain the individual's name and residential address. One of the documents must verify that the individual has lived in Texas for at least 30 days.
How to prove Texas residency? ›
Proof of Residence in Texas
- Utility bills in name of the person.
- Texas high school transcript.
- Transcript from a Texas institution.
- Texas driver's license or Texas ID card showing origination date.
- Texas voter registration card showing origination date.
- Pay stubs.
- Bank statements.
For the ID Card, you will need to complete steps 2, 4, and 5 below. You must have been a resident of Texas for at least 30 days to apply for a Texas ID Card or Driver License.
Can you be a resident of two states? ›
You can be a resident of two states at the same time, usually by maintaining a domicile in one state and spending 183 days or more in another. It is not advisable, as you will be liable to file income taxes in both states, rather than in only one.
How to establish Texas residency for tax purposes? ›
Establishing Texas Residency (And Helpful Links)
- Move To Texas. ...
- Update Your Mailing Address. ...
- Register Your Car in TX. ...
- Get Your Texas Driver License or Identification Card. ...
- Register To Vote. ...
- Find Local Professionals. ...
- Update Your Estate Plan. ...
- Get Your Pets Settled In.
Proof of Residence in Texas
- Utility bills in name of the person.
- Texas high school transcript.
- Transcript from a Texas institution.
- Texas driver's license or Texas ID card showing origination date.
- Texas voter registration card showing origination date.
- Pay stubs.
- Bank statements.
South Dakota and Florida are the quickest and easiest state to establish residency, especially for location-independent workers and nomads. South Dakota allows you to establish domicile with a simple process that requires just a receipt for a one-night stay at an RV park.
What does state of legal domicile mean? ›
Your domicile is the state of your permanent home, or the state you consider your home whenever you are. elsewhere. Your domicile is an important place. It is, for example, the place that usually has the power to tax. your income or dissolve your marriage or distribute your property upon your death.
