Establishing Florida Residency: A Cautionary Guide for New Yorkers

Few state relationships in America are as intertwined as the one between New York and Florida. For generations, a steady stream of travelers, retirees, and seasonal residents has created a powerful social and economic bond between New York and Florida. With no state income tax, no estate or inheritance tax, the homestead exemption and the lower cost of living, many New Yorkers see the appeal of formally changing their residency from New York to Florida.  However, such a change requires careful planning and solid counsel, without which the results can be devastating.    

In a recent decision, Hoff v. New York Tax Appeals Tribunal,[1] the New York Tax Appeals Tribunal sustained a 2018 and 2019 domicile assessment against a couple who had taken several formal steps (registering to vote, obtaining Florida driver’s licenses, filing a declaration of domicile, among other actions) to move their domicile from New York and establish their Florida residency. While the decision does not change the interpretation of existing laws, it demonstrates how closely New York analyzes home use, a taxpayer’s time, business activity, and personal connections to determine an individual’s domicile. When a taxpayer owns residences in both New York and another jurisdiction, an establishment of ties to the other jurisdiction alone is not sufficient to transfer domicile, it must be accompanied by a clear abandonment of New York domicile.

Home Use

A domicile is a person’s true, fixed, permanent home – the place an individual intends to live indefinitely and return to, despite spending considerable time elsewhere. A person can have only one domicile. Determination of domicile is multifaceted, but one large consideration is where the taxpayer maintains their primary residence. Although the Hoffs had a long-term home in upstate New York and purchased a second home in Florida in 2014 with a view to eventually retire there, their New York home was not sold or downgraded.

While the Tribunal acknowledged “the undisputed trend toward eventually relocating to Florida,” the continued, unrestricted use of the New York home during the audit period contributed to the Tribunal’s finding that the Hoffs had not abandoned their New York domicile. 

Time Factor

A second key factor in determining domicile is the time spent in each state. The Tribunal used the taxpayers’ Verizon statements to establish the number of days spent in each location. Cell phone records reflected that the Hoffs spent 186 days in New York, 131 days in Florida, and 48 days in other locations in 2018. In 2019, the Hoffs spent 164 days in New York, 153.5 days in Florida, and 47.5 days in other locations. Although the Hoffs spent more time in Florida in 2019 than in 2018 – again showing a trend toward relocating to Florida – they continued to spend more time in New York than in any other state. The Tribunal found such a showing supported the Hoffs’ continued domicile in New York.

Business Ties

The Tribunal further considered the Hoffs business ties to New York and Florida. Mr. Hoff owned a successful New York business.  Despite having a plan in place to separate himself from and eventually turn the business over to his son, Mr. Hoff earned a significant salary from the business in 2018 and 2019.  He also maintained the business accounts and traveled on behalf the business during the audit period.  Tax returns also showed that, despite opening a business in Florida, Mrs. Ocorr-Hoff also continued her business in New York. The continued income derived by both of the Hoffs from their New York businesses supported the Tribunal’s finding that their domicile remained in New York.  

Personal Connections

Finally, the Tribunal considered the Hoffs personal and social connections in both New York and Florida. The Hoffs maintained full membership in two country clubs in New York, spent three of four significant holidays in their New York home, and had only one of their four cars registered in Florida during the audit period.  Few, if any, of their personal effects were moved to Florida during the years in question.

Although the Hoffs had established strong social connections in Florida – including joining a country club, becoming active in their homeowners’ association, registering to hunt, and changing their driver’s licenses and voter registrations, among other steps – the Tribunal ultimately determined that the Hoffs overall patterns of life continued to reflect stronger ties to New York.

The Hoffs also waited until May 10, 2019 and September 13, 2019, respectively, to create revocable trusts and execute new Last Wills and Testaments under Florida law.  Further, there was no evidence that they opened bank accounts in Florida during the audit period.

When considered in their totality, the Hoffs personal and social ties pointed to a stronger connection to New York than Florida.

Successful Relocation Planning

Establishing domicile in a state requires both physical presence and an intent to make that state a permanent home indefinitely. Given the fact-intensive nature of the domicile analysis, it is possible that more than one state may conclude an individual is domiciled in their state for tax purposes. It is therefore imperative that individuals not only take steps to establish domicile in their new state, but also terminate connections to their prior domicile. 

Many individuals plan to transition to states such as Florida to take advantage of the warmer weather, for more favorable tax treatment (Florida does not have income or estate taxes), or for asset protection purposes (such as homestead exemptions and tenancy by the entirety protections). However, the Hoff decision demonstrates that a gradual, partial move out of New York may expose taxpayers to audit risks and potential assessments. A successful relocation requires clear, consistent actions showing a full shift in home, work, and personal life. Selling or leasing the old home, relocating business interests or income sources, updating estate planning, updating voter registration and driver’s licenses, and shifting social ties all support the establishment of a new domicile. Formal declarations alone are insufficient. Taxpayers should take decisive actions showing that New York is no longer their primary home and maintain complete and adequate records.

Cullen and Dykman works closely with clients and their tax advisors to evaluate continued connections to former states and to structure a defensible change in domicile. With offices in Albany, New York City, and Uniondale; Hackensack, Princeton, and Newark; Washington, D.C.; and Palm Beach, our attorneys regularly assist individuals transitioning from the Northeast to Florida while maintaining family, business, and financial connections across state lines.

If you are considering establishing Florida domicile or have recently relocated, our Trusts and Estates attorneys can assist in reviewing your existing plan, addressing multistate residency concerns, and ensuring that your estate planning reflects your current residence and long-term objectives.

Disclaimers

Please note this is a general overview of developments in the law and does not constitute legal advice. Nothing herein creates an attorney-client relationship between the sender and the recipient. Brittany L. Froning is admitted to practice law in Florida. Andrew P. Nitkewicz and Maureen R. Monaghan are not admitted to practice law in Florida.

Footnotes

[1] Matter of Hoff and Ocorr-Hoff, DTA No. 850209 (N.Y.S. Tax Appeals Trib. Oct. 9, 2025).