If you cease being a resident of NJ, you do not have to pay NJ state income tax on your retirement income.
It is not really necessary to turn in your NJ driver's license to prove you are no longer a NJ resident - your driver's license is only one factor considered in determining state residency. You just have to take steps to show you no longer live in NJ and do not intend to return to NJ; just moving to Taiwan and establishing legal residency there is sufficient.
Factors determine the Date You Established Residency: The date you choose as the first
day of residency can coincide with one of
the following events:
- You or your spouse arrived in
the state or country
- Your belongings arrived
- You or your spouse started
work
- You started renting your new
place
- You purchased your new home
- You or a family member
enrolled in school
- You or your spouse registered
to vote
- You or your spouse applied
for a state driver's license
What makes you a resident of a state (or country)?
Generally, you're a resident of a state
(or country) if you intend to either stay there permanently,
or return there after a temporary absence. It's where home is – where
you come back to after being away on vacation, business trip, overseas or
out-of-state employment, or school. Many factors are considered, not
the least of which are where you are registered to vote, own homestead property
and are licensed to drive.
Residency rules vary from state to state. For example, if
you spend more than a certain number of days in some states, you're considered
a resident whether it makes sense to you or not. If you have any concerns,
check with your State Department
of Revenue for specific residency rules,
especially as they apply to your particular situation.
