Massachusetts Residency When Moving to Florida
Domicile, the 183-day rule, the millionaire surtax, the part-year return, and the estate tax
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Massachusetts taxes residents on worldwide income. You stay a resident if Massachusetts is your domicile, or if you keep a permanent place of abode there and spend more than 183 days in the state. Its 4 percent surtax on income above US$1,107,750 (2026) has driven many high earners to Florida — and the state reviews those moves.
On this page
The tests
| Test | Rule |
|---|---|
| Domicile | Permanent home; requires establishing Florida |
| Statutory residency | Permanent place of abode plus more than 183 days in Massachusetts (part days count) |
| Part-year | Form 1-NR/PY for the move year |
The surtax and timing
The 4 percent surtax applies to taxable income above an inflation-indexed threshold — US$1,107,750 for 2026 (US$1,083,150 for 2025) — on top of the regular 5 percent rate (8.5 percent on short-term capital gains). A business sale, stock liquidity event, or large capital gain after a completed move to Florida isn't subject to it unless the income is Massachusetts-source: gain on Massachusetts real estate, and gain from selling a business carried on in Massachusetts or an interest in one held as a sole proprietorship, partnership, or LLC — even after you leave. Capital gain on C or S corporation stock generally isn't Massachusetts-source unless it's really compensation or the structure was changed to avoid tax.
Estate tax
Massachusetts has its own estate tax: for deaths since January 1, 2023, estates of US$2 million or less owe nothing, and larger estates get a US$99,600 credit that effectively exempts the first US$2 million. It applies to a Massachusetts domiciliary's estate (excluding real and tangible property located outside Massachusetts) and to Massachusetts real estate and tangible property of nonresidents. Changing domicile matters for estate planning as much as for income tax.
Frequently asked questions
How do I stop being a Massachusetts resident?
Change your domicile to Florida, and stay 183 days or fewer in Massachusetts if you keep a home there.
Does moving to Florida avoid the millionaire surtax?
On non-Massachusetts-source income after a completed move, yes — but the move is scrutinized.
Does Massachusetts tax my estate after I move?
Not your whole estate if you're no longer domiciled there — but Massachusetts real estate you own still counts.
Do I file in Massachusetts the year I move?
Yes — a part-year resident return.
Official sources
The Massachusetts Department of Revenue explains that the resident return (Form 1) applies when: “Legal residence is not in Massachusetts for entire year but you maintain a permanent place of abode in Massachusetts and spend more than 183 days of the taxable year in total in Massachusetts” — Massachusetts Department of Revenue, Legal and Residency Status in Massachusetts, https://www.mass.gov/info-details/legal-and-residency-status-in
Next step
Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk handles Massachusetts part-year and nonresident returns and residency planning around large income events. See pricing or book a call.
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