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 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

Check vehicle insurance rates......we considered a 'move' from SD to TX. Rates would have been doubleIt ain't all about state income taxes.Some 'residency' reading.......LINK

Vehicle inspections are required in Texas. See this thread: InspectionsFlorida or Arizona may be better. There are lost of items to consider. Florida does not have vehicle inspections at all.

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

Check inheritance laws and death taxes in both states.

Changing State of residence to Texas ??? | Good Sam Community

2gypsies1
Explorer III
Jul 10, 2014
Clay L wrote:
TX, SD, and FL are the three most popular states for full timers.

There is a problem looming with TX that if not fixed will put them way down the list for many. In the past although TX required vehicle inspections,they did not make you go back to the state each year. They required you to get the sticker when you go back.

They have passed a new law/regulation that requires you to have the sticker before you can get new plates each year, so you can no longer do an on-line renewal.
If you plan to spend time there each year that may not affect you.

SD has no vehicle inspection.

NOTE CORRECTION:

The Escapee RV Club in Livingston, Texas just issued a statement that the new law due to start March 2015 states that those out of state will not have to go back to Texas for inspections. Once you return you will have 72 hours to get inspections.
pawatt
Explorer
Jul 10, 2014
Any more of you out there that have actually done this.
Clay_L
Explorer
Jul 09, 2014
TX, SD, and FL are the three most popular states for full timers.

There is a problem looming with TX that if not fixed will put them way down the list for many. In the past although TX required vehicle inspections,they did not make you go back to the state each year. They required you to get the sticker when you go back.

They have passed a new law/regulation that requires you to have the sticker before you can get new plates each year, so you can no longer do an on-line renewal.
If you plan to spend time there each year that may not affect you.

SD has no vehicle inspection.
kknowlton
Explorer II
Jul 09, 2014
As others have mentioned, income tax isn't the only thing to consider. Registering cars (and therefore, I assume, RVs) is quite expensive in Texas, and there are other taxes and fees that come up as part of being Texans. (My parents moved from AZ to TX some years ago and found themselves surprised at some of those costs.) Do your homework before taking the plunge. I think every state has you paying one way or another. :)
Mn_Hkr
Explorer
Jul 09, 2014
pawatt wrote:
Thank you all for the info, please keep it coming. Would be great if I could hear from someone who actually changed from MN to TX.

Talk to your neighbor, across the block from your old lot in GGG-L Kahl
pawatt
Explorer
Jul 09, 2014
Thank you all for the info, please keep it coming. Would be great if I could hear from someone who actually changed from MN to TX.
rockhillmanor
Explorer
Jul 09, 2014
pawatt wrote:
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

First of all you will have to pick one place as your domicile. Uncle Sam won't let you live in more than one place.

And really do you homework on ALL the taxes within a state. If they don't have one tax or real low tax they DO make up for it in other areas.

Like TN has real low property taxes etc, but their sales tax is 10%!

http://taxes.about.com/od/statetaxes/a/Best-States-for-Retirees.htm

http://taxes.about.com/od/statetaxes/a/tax-free-states.htm

http://retirementliving.com/RLtaxes.html

If you are close to retirement it is 'really' important to look at what the state you chose taxes for retirement income also.
John_Joey
Explorer
Jul 09, 2014
TomG2 wrote:
Escapees puts out a great little brochure about "How to become a Texan"...

Clicky
TomG2
Explorer
Jul 09, 2014
Escapees puts out a great little brochure about "How to become a Texan". It lists the method as well as some of the advantages/disadvantages. Friend from Minnesota is very happy she made the change. I recall that she has to stay out of Minnesota more than six months a year to qualify.
amandasgramma
Explorer
Jul 08, 2014
This might be helpful.......TAXES by state