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pawatt's avatar
pawatt
Explorer
Jul 08, 2014

Changing State of residence to Texas ???

We are thinking of changing our state of residence from Minnesota to Texas. Primarily because there is no State income tax in Texas. Who has done this & what was the process. We own Real Estate in Texas and currently spend 6 months in Texas. We will still have Real Estate in MN as well. Tips, suggestions, warnings, advice all appreciated. Drawbacks to being a Texas resident? Insurance issues? Drivers lic & registration process? Do we register the car we leave in MN in MN?
THANKS Ron
  • Check inheritance laws and death taxes in both states.
  • Supplemental health care insurance may need to change, also you will lose the homesteading tax break on the MN property. Two different couples have told us that the best thing they did was give up MN for FL and AZ. Both say they have more money at the end of the month now then when they were MN residence (both couples don't own property in MN anymore.)

    Texas has the car inspection, but as I understand it you have to have it done when you enter the state, so if you left a vehicle up here you could have TX plates, just not the safety sticker and still be OK driving in MN.

    Good Luck
  • Vehicle inspections are required in Texas. See this thread: Inspections

    Florida or Arizona may be better. There are lost of items to consider.

    Florida does not have vehicle inspections at all.
  • Check vehicle insurance rates......we considered a 'move' from SD to TX. Rates would have been double

    It ain't all about state income taxes.

    Some 'residency' reading.......LINK
  • Check the property taxes. We moved from TX to NM, which has income taxes, and wound up paying less because of the lower property taxes.
    Lynn

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