When does state tax apply after moving?

[skywalkerdude]

After relocating from one state to another state (i.e. from California to Washington), when does WA state tax (or lack thereof) start applying? Does it start applying when I physically move, or when it is reflected in my company?

In other words, let's say I transferred locations but stayed within the same company. The company takes some time (on the order of months) to finalize the transfer in their system. However, I am and have been physically in the Washington for a few months already. In the interim period, do I continue to pay California state tax, or can I just somehow declare that I am no longer a California resident and stop paying California tax even though it is not yet reflected in their system?

[MaryK4 · Accepted solution]

In general, your resident state is based on DOMICILE.  Each state has its own definitions and rules so see Guidelines for Determining Resident Status (FTB Publication 1031) for more details.

Part of domicile is intent, but this is difficult to show unless you take further actions to sever your ties with California.  If you file a Part Year tax return for California for the tear of the move, you will be able to allocate the income based on your residency change date.  It is not solely based on which state your company withheld.  Just remember, if there is a dispute, it will be up ti you to provide proof of the change in domicile.