How to leave Kansas residency?

Jameson Rader -

Leaving Kansas residency can offer new opportunities, whether you’re moving for a new job, lower taxes, or retirement.

This guide will help you establish a new domicile, cut ties with Kansas, and manage any Kansas-sourced income after your move.

Step 1: Establish a new domicile

When you leave Kansas residency, the first thing you need to do is establish your new permanent home in another state. Moving physically is important, but it’s just the beginning.

You’ll also need to make sure you officially show your new state as your permanent residence by taking a few crucial steps.

Here’s how to do it:

1) Establish new residency

  • Secure a residential address:When moving to a new state, it's important to find a place to live, whether you decide to rent or buy a home. Some states, such as Florida, offer tax benefits like the homestead exemption, which can reduce your property taxes. It's crucial to establish a permanent residence in your new state as proof that you have left Kansas.
SavvyNomad provides residential addresses in Florida, which can be a valuable service for individuals who need an official address while transitioning to a new domicile. This is especially useful for digital nomads and expats looking for tax benefits in a state like Florida.
  • File a Declaration of Domicile: Some states allow you to file a Declaration of Domicile to formally state that you now live there. This legal document can help reinforce your move, especially in states like Florida.

Residency guides:

Best domiciles for Kansas ex-residents

2) Relocate your belongings

Moving personal items like your furniture, vehicles, and other household possessions to your new state shows that you are serious about making it your permanent home.

3) Spend time in your new state

Spending a significant amount of time in your new state indicates that you have truly relocated. Make sure you are spending more time there than in Kansas to avoid any confusion about your primary residence.

4) Transfer IDs and vehicle registrations

Transfer your driver’s license and vehicle registration to your new state. This is a key step in showing that you’ve established permanent residency.

5) Register to vote

Registering to vote in your new state is a clear indicator of residency. Don’t forget to cancel your voter registration in Kansas as well.

6) Update financial accounts

Notify your bank, credit card companies, and other financial institutions of your new address. Keeping all your financial documents up to date with your new residency helps confirm your move.

7) Notify your employer

Let your employer know about your new address so they can update your payroll and tax withholdings to your new state. This will help make sure Kansas doesn’t withhold state income taxes after your move.

Step 2: Sever ties with Kansas

Once you've moved to a new state, the next step is to officially end your ties with Kansas, ensuring that you are no longer considered a resident for tax purposes.

Here are the key steps you need to take:

1) Close Kansas financial ties

  • Close local bank accounts:  If you have any bank accounts or financial assets based in Kansas, consider closing them or transferring the funds to banks in your new state. This shows that your financial life is now centered in your new state, not Kansas.
  • Update personal records: Update your address with the IRS, Social Security, and any other relevant entities. Keeping all personal and financial records in your new state helps solidify your move.

2) Sell or lease property

If you own property in Kansas, selling it is a strong indication that you are no longer a resident. If selling isn’t an option, leasing the property long-term can also help demonstrate that you no longer live there.

3) Cancel local subscriptions/services

Make sure to cancel any subscriptions or memberships tied to Kansas, such as gym memberships, utilities, or local services. Keeping these active could suggest that you still have ties to the state.

4) Transfer healthcare and insurance

Move your healthcare services and providers to your new state. Transferring these essential services further strengthens your case that your daily life is now based elsewhere.

Step 3: Time spent outside Kansas

After you move to your new home and cut ties with Kansas, it's crucial to monitor the amount of time you spend in the state to prevent being classified as a resident for tax reasons.

Kansas follows the 183-day rule, which is a widely used standard for establishing residency in many states.

183-day rule

  • What is the 183-day rule?: If you spend 183 days or more in Kansas in a calendar year, you may be considered a resident for tax purposes, even if you’ve moved to another state. This means you could be liable for state income taxes.
  • Stay under the 183-day limit: To avoid being taxed as a resident, you’ll want to make sure you spend fewer than 183 days in Kansas each year. A day counts as any part of a 24-hour period spent in the state, so even short visits can add to your total.

Keep detailed travel records

  • Why it’s important: If your residency status is ever questioned, having detailed records of your time spent in and out of Kansas will prove that you’ve stayed under the 183-day limit.
  • What to track: Save flight tickets, hotel receipts, and other travel documents showing when you entered and left Kansas. Having a detailed log of your movements will be helpful if Kansas’s Department of Revenue ever audits your residency status.

Step 4: Kansas-sourced income

Even after leaving Kansas, you may still have income connected to the state, such as rental or business income. It’s important to handle Kansas-sourced income correctly to stay compliant with state tax laws.

Here’s how to handle Kansas-sourced income once you’ve moved:

1) Ongoing tax responsibilities

  • File non-resident tax returns: If you continue to earn income from sources within Kansas, such as rental properties or businesses, you’ll need to file non-resident tax returns. This ensures that Kansas only taxes the income you earned within the state, not the income from your new home state.
  • Tax on Kansas-sourced income: Even though you are no longer a resident, Kansas still has the right to tax income generated within the state. This could include wages earned in Alabama, rental income, or profits from Alabama-based businesses.

2) Rental or business income

If you own a rental property or a business in Alabama, any income generated from those sources will still be subject to Alabama state taxes. It’s important to consult with a tax professional to ensure compliance with Alabama tax laws, especially if complex income streams tie back to the state.