Changing Domicile for Tax Benefits and Asset Protection

The TCJA and Recent Court Decision Change the Calculus

Martin M. Shenkman, JD, CPA/PFS, AEP, Lance E. Rothenberg, JD, LLM, and Joy Matak, JD, LLM

WCPAs talk to individuals about moving out of high-tax states such as New York, the focus of the conversation has typically centered on how to reduce or eliminate state income taxes. With the New York State individual income tax rate ranging from 4% to 8.82%, it is no wonder why so many New Yorkers long for the 0% income tax of states such as Florida. The limitation of state and local tax (SALT) deductions in the Tax Cuts and Jobs Act of 2017 (TCJA) further enhanced the attractiveness of a move out of New York for state income tax purposes. Now that most taxpayers will get little or no federal tax benefit for paying state income taxes, many of them may be wondering why they should.