New Residency in Different States and Income Tax Implications

[madelinemlarson7]

I grew up in California, which is where my drivers license currently is registered.  I graduated college this past year and moved to Texas in February of 2021. Up until now I have been a resident (i.e. drivers license address) of CA, and my vehicle is also owned by my parents, who reside in CA, but is currently in TX, where I live and drive. My CA license will expire in a few months, and I am curious what the tax implications are for having a drivers license in a state with income tax versus having residency (and working) in TX, where there is no state income tax. I have also heard it can be a lengthy drawn out process to switch ID's to TX right now, because the DPS is way overbooked. As my license is about to expire, I have two questions: 

1. Should I renew my license in CA or switch to TX? Because I am young, I don't own any property or have a "permanent residence' in TX. I will likely be moving every year/every couple of years to different cities or apartments (likely still in TX), but am weary of making my permanent residence somewhere where I might not be living a year from now. I am leaning towards keeping my permanent residence in CA because I can keep my permanent residence my parent's address, where I know I will have a stable place to send all of my important documents.  

2. Will having a CA ID force me to pay CA state income tax? Or will I still be able to file in TX? Because I work in TX, I would like to receive the no-state-income tax benefits, but don't know if having a CA drivers license will force me to pay CA state income taxes.

Thank you in advance for the help! 

[rjs]

Your driver's license does not determine where you pay taxes. You are a Texas resident since February when you moved there. However, since you were still a California resident before you moved, you will have to file a California part-year resident tax return for 2021 and pay California tax on any income that you earned while you were still a California resident.

You can't choose to be a resident of a state that you don't live in. If you live in Texas, even if you move frequently within the state, you are a Texas resident, and not a California resident.

You must get a Texas driver's license immediately. You were required to do that within 90 days of moving to Texas. Your California license is no longer valid, and you are now effectively driving without a license. The following is from the Texas DPS web site.

"New Texas residents can legally drive with a valid, unexpired driver license from another U.S. state, U.S. territory, Canadian province, or qualifying country for up to 90 days after moving to Texas. Prior to the end of the 90 day grace period, a new Texas resident must apply for a Texas license in person at any driver license office to continue to drive legally."

Moving to Texas