Pennsylvania Residency When Moving to Florida
Domicile, the 183-day rule, local earned income tax, the retirement exemption, and the inheritance tax
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Pennsylvania taxes residents at a flat 3.07 percent (2026). You remain a resident if Pennsylvania is your domicile, or if you keep a permanent place of abode there and spend more than 183 days in the state. It exempts most retirement income, but its inheritance tax on property from Pennsylvania domiciliaries often prompts retirees to change domicile to Florida.
On this page
The tests
| Test | Rule |
|---|---|
| Domicile | Permanent home; requires establishing Florida |
| Statutory residency | Permanent place of abode plus more than 183 days |
| Part-year | Income received while resident, plus Pennsylvania-source income while nonresident |
| Local earned income tax | Municipal and school district taxes on residents' earned income; nonresidents owe only a work location's nonresident rate, where one exists (Philadelphia's Wage Tax: 3.425 percent for nonresidents from July 1, 2026) |
Retirement income
Pennsylvania doesn't tax distributions from an eligible employer-sponsored plan received after you meet the plan's retirement conditions (age or years of service) and retire, IRA distributions after age 59½ (or otherwise free of the federal early-withdrawal penalty), or Social Security — even for residents.
The inheritance tax
Pennsylvania's inheritance tax applies to property passing from a decedent domiciled in Pennsylvania — 0 percent to a surviving spouse (or to a parent from a child aged 21 or younger), 4.5 percent to direct descendants and lineal heirs, 12 percent to siblings, and 15 percent to other heirs (charities and exempt institutions excepted) — and to nonresidents' Pennsylvania real estate and tangible property. Florida has no inheritance or estate tax.
Frequently asked questions
How do I stop being a Pennsylvania resident?
Change your domicile to Florida, and stay 183 days or fewer in Pennsylvania if you keep a home there.
Does Pennsylvania tax my pension?
Generally not, once you meet the retirement conditions — even as a resident.
Does moving to Florida avoid the Pennsylvania inheritance tax?
For most property, if your domicile changes — but Pennsylvania real estate is still subject to it.
Do local earned income taxes stop when I move?
Yes, for your residence-based local tax; Pennsylvania-source wages may still be taxed where earned.
Official sources
The Pennsylvania Department of Revenue explains: “Statutory residency is established if a person domiciled outside the Commonwealth: Has a permanent place of abode in Pennsylvania; and Spends more than 183 days (midnight to midnight) of the taxable year in Pennsylvania.” — Pennsylvania Department of Revenue, Brief Overview and Filing Requirements, https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/brief-overview-and-filing-requirements
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 Pennsylvania part-year returns, domicile planning, and inheritance tax exposure for movers to Florida. See pricing or book a call.
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