Residency and the Impact on Vermont Taxes
We receive many questions from our clients in regards to how residency (domicile) is determined when they move to a new state.
The ruling from the state of Vermont goes through the guidelines that they use in determining whether you are considered a Vermont resident. As noted in the guidelines, no one factor is considered more critical than the others, ultimately giving the tax department final say.
What is domicile?
Domicile is a legal concept that has implications for Vermont income tax, the statewide education tax and property tax adjustments. With regard to income tax, resident individuals are taxed on more of their taxable income than nonresidents. An individual qualifies for residency for the portion of the year in which the individual is domiciled in the state.
Questions about tax implications of Vermont residency? Please click here for details.