Compliance Made Simple
Our State Tax Return Preparation service ensures accurate, compliant, and stress-free filing for individuals with complex residency issues, multi-state income, or state-specific requirements, especially after moving abroad.
Expert state tax return preparation that keeps you compliant with your stateās unique rules.
Work with licensed expat tax professionals skilled in state residency, part-year filing, statutory residency rules, and the tax impacts of moving overseas.
Get clear guidance when moving abroad, understand your state residency status, whether you must file, and how to establish non-residency to avoid unnecessary tax exposure.
While many US expats have US federal taxes on the radar, state tax return filing requirements sometimes get missed. Even if you think that you no longer need to file in your former home state while living abroad, you may have state income tax filing requirements that you arenāt aware of.
At Universal Tax Professionals, we are dedicated to assisting you in comprehending your state tax filing obligations. Our team of experienced international tax accountants deeply understands all state tax regulations and can offer valuable insights into your state tax circumstances. Additionally, we provide other personalizedĀ US expat tax servicesĀ to cater to your needs as an American expat.
Determining whether you must file a state tax return can be confusing, especially if youāve moved abroad or have income from multiple states. Each state has its own residency definitions, filing thresholds, and rules for what counts as taxable income.
You lived in a US state for part of the year or changed your state residency during the tax year.
You earned income connected to a state, such as wages, rental income, or business activity, even if you didnāt live there.
You maintained significant ties to a state, like a home, driverās license, voter registration, bank accounts, or dependents.
Your former state enforces strict residency rules, which may still require filing even after moving overseas.
If you recently moved abroad or are unsure whether you still have a state filing obligation, weāll guide you through your residency status, help you determine whatās required, and ensure you take the right steps to avoid unnecessary tax exposure.
For individuals seeking to minimize their tax burden, residing in a state without income tax can provide a significant financial advantage. As of 2025, there are seven states in the United States that currently do not impose state income tax and will not require you to file a state tax return.
Alaska, known for its stunning natural beauty and rugged landscapes, stands out as one of the most tax-friendly states in the US. It derives a significant portion of its revenue from oil and gas production, allowing it to forego state income tax altogether
Florida, famous for its warm climate and picturesque beaches, is a magnet for retirees and individuals seeking to escape high-tax states. It has long been a haven for those looking to preserve their income.
Nevadaās economy, centered around entertainment, tourism, and mining, benefits from not having a state income tax. This has made it an attractive destination for professionals and entrepreneurs.
South Dakota is celebrated for its low cost of living and absence of state income tax. This has drawn individuals and businesses alike, particularly in the financial services sector.
Texas, with its thriving economy and business-friendly environment, is a powerhouse among states without income tax. Itās become a hub for technology companies and entrepreneurs seeking financial flexibility.
Washington is renowned for its natural beauty and progressive urban centers. The absence of state income tax has contributed to its appeal, especially for high-earning professionals in fields like technology.
Wyomingās diverse landscapes, including majestic mountains and vast plains, are complemented by its favorable tax policies. The state relies on revenue from industries like energy and agriculture to maintain its income tax-free status.
While New Hampshire and Tennessee are often cited as states without income tax, itās important to note that they do tax residents on interest and dividend income. This unique approach allows them to forgo taxing earned income but still generate revenue from certain types of investment gains.
Certain states, often referred to as āsticky states,ā pose distinctive challenges when it comes to breaking residency due to their complex regulations. Here are some insights into the residency dynamics of these states:
Californiaās residency rules are notoriously intricate, demanding individuals to demonstrate unequivocal intent to sever ties. Property ownership, employment, and familial connections are all scrutinized. Even maintaining a mere presence within the state can complicate the process of breaking residency.
New York employs a āstatutory residence test,ā scrutinizing days spent in the state and the presence of a permanent abode. This makes it difficult for individuals to effectively break residency, particularly if they retain property or family connections within the state.
New Mexicoās regulations can be intricate, leaving individuals navigating a nuanced process. Establishing clear intent to relinquish residency ties is essential, but the stateās specific requirements can make this a challenging task.
South CarolinaĀ places emphasis on domicile, considering factors like property ownership and familial connections. Demonstrating a genuine move away from the state requires careful navigation of these regulations.
Virginiaās stringent approach to contiguous states can be challenging to overcome. Establishing residency elsewhere, especially in neighboring states, may still result in Virginia considering an individual as a resident.
A significant aspect to bear in mind is that all of these āsticky statesāĀ mentioned also tax residents on their worldwide income. This adds an additional layer of complexity for expat residents seeking to break residency.
Given the complexities of residency regulations and the taxation of worldwide income, expat residents in these āsticky statesā may find it advantageous to take proactive steps to break residency there. This could involve establishing residency in a state with no income tax or one with more lenient regulations facilitating the process forĀ individuals living abroad.
Managing state tax requirements can be overwhelming, especially when residency rules, income sources, or a move abroad complicate your situation. Our State Tax Return Preparation service is designed to simplify the process by giving you expert guidance and comprehensive support from start to finish. Hereās what you can expect when you work with us:
Complete preparation and review of all required state tax returns, whether resident, nonresident, or part-year.
Thorough residency evaluation to determine your filing obligations and help you properly establish non-residency after moving abroad.
Clear analysis of state-sourced income to identify what is truly taxable and ensure accurate reporting for multi-state or complex income situations.
Year-round support for state tax notices, questions, and follow-up inquiries, handled by expat tax specialists experienced in state residency and expat scenarios.
We understand the unique intersection of state tax law and international living, ensuring your return is prepared accurately and strategically.
Whether youāre establishing non-residency, handling multiple state filings, or dealing with strict state rules, we provide clear, tailored advice based on your situation.
We provide clear fees with no hidden costs, so you always know exactly what youāre paying for before we begin.
Our assistance doesnāt end at filing. Weāre available throughout the year to help with notices, questions, and follow-up inquiries.
Our Process
It depends on your former state and whether youāve taken the proper steps to end residency. Some states have strict rules and may still require a return even after you relocate overseas. We help you determine your exact obligations
State-sourced income may include wages earned in the state, rental property income, business income, or certain investment earnings. Each state defines this differently, and we analyze your situation to identify what is actually taxable.
Becoming a nonresident often requires cutting specific tiesāsuch as housing, voter registration, or driverās licenseāand establishing domicile elsewhere. We guide you through the necessary steps to properly sever residency in the eyes of your state.
If you lived in more than one state or earned income across state lines, you may need to file multiple returns. We prepare all required resident, nonresident, or part-year filings to ensure accurate reporting and compliance.
We understand that many people who move abroad are unaware that they may still have state tax filing obligations. Every state has its own rules, and determining whether you must continue filingāor whether you can safely end your state residencyācan be confusing.
Thatās why Universal Tax Professionals is here to help. We guide you through your state filing requirements, explain how your move abroad affects your residency status, and provide clear steps on how to properly remove state residency if you no longer plan to return to the US. Our goal is to make the process simple, accurate, and stress-free.
