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Choosing a Domicile State

If you have sold your home and will be RVing full-time, you may be considering changing your domicile state. Your domicile state is where your permanent home is. Even if you are traveling or away from home most of the time, your domicile state is where you intend on returning to.  It is the state where you vote, register your car and pay taxes.  Many RVers choose a state that has no state income tax in order to save money. Currently, 7 states do not have an income tax – Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. New Hampshire and Tennessee do not tax earned income (wages), but they do tax investment income and interest. However, that is not the only – or necessarily the most important – factor to consider.  Florida, South Dakota and Texas are the most popular choices for RVers, for various reasons.  We are domiciled in Wisconsin, which is where we are from, so we have chosen not to change our domicile state until we determine where we want to be permanently.  

Important Things to Consider When Choosing a Domicile State 

Income tax – Check income tax levels by state at https://taxfoundation.org/center/state-tax-policy/ or at https://www.kiplinger.com/kiplinger-tools/retirement/t055-s001-state-by-state-guide-to-taxes-on-retirees/index.php

Sales tax – Check sales and local tax rates at https://taxfoundation.org/center/state-tax-policy/ or at https://www.kiplinger.com/kiplinger-tools/retirement/t055-s001-state-by-state-guide-to-taxes-on-retirees/index.ph

Property tax – Average property tax by state is also listed at https://taxfoundation.org/center/state-tax-policy/ or https://www.kiplinger.com/kiplinger-tools/retirement/t055-s001-state-by-state-guide-to-taxes-on-retirees/index.php

Estate tax – Some states tax surviving family on your assets after your death. Check which states have an estate tax https://taxfoundation.org/state-tax/estate-and-gift-taxes/

Debt of Deceased Relatives – Check state laws regarding family members’ responsibilities for paying off debts such as medical bills and credit card bills after you are deceased. In most cases, survivors are not personally responsible for paying off debt, but there are some exceptions. This information can be a bit complicated; you may want to contact a lawyer to discuss the laws in a specific state. The Balance has some good information regarding this here.

Vehicle registration taxes and fees – World Population Review has put together a list of all vehicle registration fees by state: https://worldpopulationreview.com/state-rankings/car-registration-fees-by-state
Vehicle laws (weight, emissions testing, annual inspections). Good Sam is a great resource for information on state-by-state and Canadian motor laws: https://goodsam.com/article/default.aspx?articleID=1195129.  Choose a state or province using the links at the top of the page.

Health Insurance – through the state exchange – what are the options? Do they have plans that include nationwide coverage?  Look for a PPO plan, which will allow you to use out-of-network providers. Also consider the quality and costs of health care in that state.  Wallet Hub has a very detailed evaluation of health care in all 50 states plus D.C. published in August, 2020.  Hover over a state on the map to see its rank.

Voting – how is out-of-state voting handled?  Ballotpedia has a complete list by state of rules regarding absentee voting: https://ballotpedia.org/Absentee/mail-in_voting
Home Schooling – different laws apply by state, and some have strict requirements while others have no regulations at all.  Get the latest information by state at https://homeschoolstatelaws.com/.

RV and vehicle Insurance rates – Michigan has the highest RV insurance rates of any state, in part because they require personal injury protection coverage. Requirements and costs by state vary widely.

Support Services – Do research on what type of services are available if you will have your permanent home there.  what type of services do they have, such as disability benefits and Medicaid benefits. Medicaid.gov has overviews of benefits and quality of care by state. https://www.medicaid.gov/state-overviews/scorecard/index.html

Steps to Take to Establish Domicile

Requirements for establishing domicile may vary by state, but the following list can guide you through the process. Note that you may also need to take some steps to cut ties with your old state of domicile. If you do not make it clear with your old state of domicile that you have moved and established domicile elsewhere, you may end up being liable for taxes in both your old state and  your new state.

1. Obtain an address in your new state.  You can use a mail-forwarding service to establish a physical address for you.  Notify businesses of your address change, including banks, credit cards companies, IRS, insurance companies and the post office. 
2. Complete and file an affidavit of domicile with the county where your new address is. Check with your new state or county to obtain a form and get instructions on completing and filing the affidavit.
3. Obtain a driver’s license in the new state. Note that some states require a commercial driver’s license for driving an RV over a certain length or weight. Turn in your old driver’s license as well.
4. Register your vehicles in the new state. 
5. Spend time in the new state, as much as possible.  Do not spend too much time in your old state. 
6. Register to vote in your new state, and participate in voting there as soon as possible. Information about registering in different states can be found at USA.gov.
7. File taxes in your new state. 
8. Have your will / estate planning documents created by an attorney in your new state.  This will help establish your intent on staying in that state permanently. It will also eliminate the possibility of your estate being held up in probate due to differences in laws between states.
9. Create relationships with the community.  Find doctors, dentists, attorneys, etc., in your new community.  Cancel memberships in your old state. Join clubs in your new state. 
10. Move any valuable items to your new state.

Help with changing your domicile state:

Mail forwarding services can provide assistance with this, providing step-by-step instructions. 

Good Sam https://www.goodsammailservice.com. / MyRVMail https://www.myrvmail.com.  Good Sam uses My RV Mail as their service provider. Discounts may be available; if you are a Good Sam member sign up through Good Sam, and sign up directly through My RV Mail if you are a Passport America member.

Escapees https://www.escapees.com/mail-service/.  Escapees is located in Texas, but Escapees can also provide an address in Florida or South Dakota, if one of those will be your domicile state.

Traveling Mailbox https://travelingmailbox.com.   This service has over 25 addresses countrywide to choose from. 

USA2ME https://www.usa2me.com/site/Mail_Forwarding_How_It_Works.aspx.  Provides an address in Texas. 

Earth Class Mail https://www.earthclassmail.com.  This service has over 80 addresses nationwide.  

Anytime Mailbox https://www.anytimemailbox.com/.  Addresses available in almost all 50 states.