Residency and Domicile

See Also


Definition of Domicile

59-10-136 and R865-9I-2, R884-24P-52

Anyone with a Utah domicile is considered a Utah resident for tax purposes, even if they are not currently living in Utah.

You are also considered to have Utah domicile if you are married to someone with Utah domicile, unless you and your spouse:

  1. file a married-filing-separate federal income tax return, or
  2. are legally separated or divorced before the end of the tax year.

Utah uses the following three “tests” to determine if you have a Utah domicile for tax purposes. If you filed a married-filing-joint federal income tax return with a spouse that is considered domiciled in Utah under any of these three tests then you are also considered domiciled in Utah for tax purposes.

  1. You are considered to be domiciled in Utah, regardless of any other evidence, if:
    1. You or your spouse have claimed a dependent on your federal income tax return who is enrolled in a Utah public K-12 school (unless you or your spouse are the noncustodial parent and are divorced from the custodial parent), or
    2. You or your spouse is attending a Utah institution of higher education as a resident student.
  2. Unless you can prove otherwise, you are considered to be domiciled in Utah in the following situations:
    1. You claim your Utah home as your primary residence and receive a lower Utah property tax rate,
    2. You are registered to vote in Utah,
    3. You file an individual income tax return as a Utah resident.
  3. You have Utah domicile if you have a home in Utah that is considered your permanent home where you will return after an absence from the state. To determine if you have fixed your habitation in Utah, you must consider if, over all, you have more connection to Utah than to any other place. These are some factors to consider:
    • Do you or your spouse have a Utah driver’s licence?
    • Do you or your spouse have a dependent who is attending a Utah public university or college as a Utah resident?
    • How do your Utah living accommodations compare to your living accommodations elsewhere?
    • Do you have a spouse or dependent in Utah?
    • Where do you and your spouse earn your income(s)?
    • Where have you or your spouse registered your vehicles?
    • Are you or your spouse members of a church, club, or similar organization?
    • Do you or your spouse have a Utah address listed with the Post Office, in telephone listings, in government documents, or similar listings?
    • Do you or your spouse list a Utah address on a federal or state tax return?
    • Where have you or your spouse claimed to be a resident on court or other government documents?
    • Do you or your spouse have any permits or licenses normally required of a resident of Utah?
    • Do you or your spouse have a dependent child who is enrolled in a Utah K-12 public school but is in the custody of a former spouse?

If you were previously considered domiciled in Utah but your situation has changed so that you no longer meet any of the conditions above, you are no longer considered domiciled in Utah.

Example

Your only Utah connection was that you used to live in a Utah apartment and you had more presence in Utah than anywhere else. Then you moved to a new apartment in another state and now have more connection to that state than Utah. In this example, you are no longer considered domiciled in Utah.

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No Utah Domicile

You do not have a Utah domicile if you are absent from Utah for at least 761 consecutive days and during this time you or your spouse:

  1. does not return to Utah for more than 30 days in a calendar year,
  2. does not claim an exemption on their federal tax return for a dependent who is enrolled in a Utah public K-12 school (unless you are the noncustodial parent),
  3. is not enrolled in a Utah state institution of higher education as a resident student,
  4. does not claim the residential exemption for property tax on your primary residence in Utah, or
  5. does not claim Utah as your home for federal tax purposes.

An absence from the state begins on the later of the date you or your spouse leaves Utah and ends on the day you or your spouse returns to and stays in Utah for more than 30 days in a calendar year.

If you do not have Utah domicile you may choose to be considered as having a Utah domicile by filing a Utah resident income tax return.

If you are considered to have domicile in Utah, your spouse is also considered to have domicile in Utah. This rule does not apply if you are legally separated or divorced, or you file your federal returns as married filing separately.

You must file a Utah income tax return (or amended return) and pay any penalty and interest that apply if you did not file a Utah return based upon your belief that you did not meet the domicile criteria.

Utah Resident

You are a Utah resident if you:

  1. Are domiciled in Utah for the entire year, even if temporarily outside of Utah for an extended period of time (this could be several years, in certain situations);
  2. Are domiciled in Utah for any period of time during the taxable year (but your residency only lasts during the period of domicile); or
  3. Maintained a place of abode in Utah and spent 183 or more days of the taxable year in Utah, even if you did not meet the definition of being domiciled in Utah. In determining whether you spent 183 or more days in Utah, a day means a “day” in which you spend more time in Utah than in any other state.

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Losing your Utah Residency

Normally, you are considered a Utah resident as long as you meet any of the conditions above. You are no longer considered a Utah resident for tax purposes if you no longer meet any of the conditions that made you domiciled in or a resident of Utah.

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Military Service Members and Their Spouses

Federal laws restrict how state domicile and residency laws may be applied to active duty service members and in some cases to their spouses. For more information, see:

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What Does Being a Utah Resident Mean?

If you are a Utah resident for tax purposes, you are subject to Utah income taxes on all of your federal adjusted gross income calculated on your federal income tax return, plus any adjustments for Utah additions or subtractions to income made when calculating your Utah taxable income on your Utah income tax return. See Utah Income and Losses.

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What Does Being a Part-Year Resident Mean?

If you only meet the definition of being a resident for tax purposes during part of the year, you are subject to Utah income taxes on all of your income earned during that period of residency or domicile and are subject to Utah income taxes on any income you earned from Utah sources when not a Utah resident. See Utah Income and Losses.

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Utah Residents Working Out of State for a Period of Time

Utah residents who work out of state (or out of the country) for a period of time, but are still considered domiciled in Utah, must pay Utah income tax on all income earned here and out of state.

Examples

  1. A Utah family moves to Japan for four years. They still own their house in Utah which they claim as their primary residence for Utah property tax purposes. They still owe Utah income tax on all earnings from Japan because they are still considered Utah residents for property tax purposes.
  2. An airline pilot lives for most of the year in an apartment in Florida, but his wife lives and is domiciled in Utah. They file a married-filing-joint federal income tax return. Since he has filed a joint return with a Utah resident, he is also considered a Utah resident for tax purposes and his income is subject to Utah income taxes.
  3. A student from Taiwan is attending the University of Utah and has brought her family with her. The children are attending a Utah public elementary school. Since her children are in a Utah public school, she is considered a Utah resident for tax purposes.

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