This is particularly the case for affluent residents of high-tax states, who were significantly impacted by the 2017 Tax Cuts and Jobs Act’s (TCJA) effective repeal of the state and local tax deduction (SALT). Additionally, amid the coronavirus pandemic and growing budget holes, legislators in many states are proposing tax hikes targeted at affluent taxpayers. It is likely that many states with large shortfalls will increasingly turn to affluent taxpayers for lost revenue in the form of higher (or newly imposed) income, capital gains, real estate, and/or gift and estate taxes.

If you are considering relocating for tax purposes, you will want to evaluate the full spectrum of financial and non-financial implications. You will also want to make sure your tax-motivated move is not in vain; there are a number of steps you will need to take to successfully establish domicile for tax purposes.

To help with your decision to relocate and success thereafter, download our new paper for insight on variables to consider and action items for changing residency.