Michigan Residency When Moving to Florida
Domicile, the 183-day rule, city income taxes, rescinding the principal residence exemption, and no estate tax
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Michigan taxes residents on worldwide income at a flat rate, plus city income taxes in Detroit and 23 other cities. You remain a resident if Michigan is your domicile, and someone living in Michigan at least 183 days is considered a resident. Moving to Florida also means rescinding the Michigan principal residence exemption on any home you keep.
On this page
The residency tests
| Test | Rule |
|---|---|
| Domicile | Your permanent home — requires establishing Florida |
| 183-day rule | Living in Michigan at least 183 days during the year makes you a resident |
| City taxes | Detroit and other cities tax residents and nonresidents working there |
The principal residence exemption
Michigan's principal residence exemption exempts a homeowner's principal residence from local school operating taxes of up to 18 mills. A Michigan home kept after a move to Florida no longer qualifies — the owner must file Form 2602, Request to Rescind Principal Residence Exemption, with the local assessor within 90 days (US$5 a day penalty, up to US$200, for not filing), and Michigan denies the exemption, with back taxes and interest, in any year the owner claims a similar exemption such as Florida homestead. Michigan has no estate tax.
After the move
Michigan-source income stays taxable to a nonresident: wages for work performed in Michigan, rental property there, and business income from Michigan operations. Retirement income from qualified plans, IRAs, and pensions is protected from nonresident taxation by federal law (the pensions after moving guide). The move year is a part-year return (the part-year guide), and the date your domicile changed is the dividing line (the domicile change guide).
Frequently asked questions
How do I stop being a Michigan resident?
Change your domicile to Florida and live in Michigan fewer than 183 days.
Can I keep the Michigan principal residence exemption after moving?
No — you must rescind it on a home that's no longer your principal residence.
Does Michigan have an estate tax?
No.
Do Michigan city taxes continue after I move?
Only on work performed in those cities.
Official sources
The Michigan Department of Treasury explains: “Resident. You are a Michigan resident if Michigan is your permanent home. Your permanent home is the place you intend to return to whenever you go away. A temporary absence from Michigan, such as spending the winter in a southern state, does not make you a part-year resident.” — Michigan Department of Treasury, 2025 Michigan MI-1040 Individual Income Tax Forms and Instructions, https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf
Federal law provides: “No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State (as determined under the laws of such State).” — U.S. Government Publishing Office, United States Code, 2024 Edition, Title 4, Sec. 114 — Limitation on State income taxation of certain pension income, https://www.govinfo.gov/content/pkg/USCODE-2024-title4/html/USCODE-2024-title4-chap4-sec114.htm
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 Michigan part-year and nonresident returns and property tax exemption coordination. See pricing or book a call.
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