Question

What is the difference between residency and domicile?

Answer

Residency is where you spend most of your time in a given year, typically 183 days or more. Domicile is where you consider your true, permanent home — the place you intend to return to. You can have multiple residences but only one domicile. States use domicile to determine income and estate tax liability. Changing domicile requires demonstrable intent: a new driver’s license, voter registration, home purchase, doctors, community involvement, and severing ties with your prior state. If you’re relocating to reduce taxes, document every step — state audits look for consistency.

About Mercer Advisors

We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.

Want to learn more about Mercer Advisors?