Residency rules, sticky taxes, and first-year steps (2026)
2026.1 Edition · Revised 2026-07-25 · DomusDay Research
The move changes the rate; the record decides whether it sticks. Minnesota keeps taxing until domicile actually changes, and its 183-day statutory test stays live while any Minnesota abode is maintained. Below: what follows leavers, and the Texas steps that build the record.
At Minnesota's top marginal rate (9.85%), every $100,000 of taxable income is $9,850 of state tax — an illustration at the top bracket, not an effective-rate calculation. Official rate tables are linked below.
Texas voters amended the constitution in 2019: the legislature may not impose a tax on the net incomes of individuals. Reversing it would take another statewide constitutional vote, not just a legislature.
Source ↗Unlike Florida or Nevada, Texas has no statutory declaration-of-domicile instrument. The Texas record is built from dated acts — the license, vehicle and voter registrations, the homestead application, and where life actually happens.
Source ↗After a November 2025 constitutional vote, school districts exempt $140,000 of homestead value. Applications go to the county appraisal district by April 30 — a dated, recorded tie to the new state.
Source ↗Texas is the easy half. Minnesota decides whether the move counts, and it decides on evidence — the two tests below stay live until the record closes them out.
The full rules, the audit program, and every source: the complete Leaving Minnesota guide →
The headline delta: Minnesota taxes its top bracket at 9.85% while Texas has no personal income tax. At the top marginal rate — an illustration, not an effective-rate calculation — every $100,000 of taxable income is $9,850 of state tax that stops accruing once Minnesota residency actually ends. The rules above decide when that is; the day count and the domicile record decide whether it holds up.
The first weeks in Texas matter more than they look: each step below produces a dated document, and dated documents are what answer a Minnesota examiner years later. Do them early and the record starts on your side of the timeline.
New residents obtain a Texas driver license within the 90-day grace period; the skills exam is generally waived for a valid out-of-state license.
Source ↗Vehicles are titled in Texas within 30 days of the move.
Source ↗Vehicles are registered within 30 days. Since January 1, 2025, non-commercial vehicles need no safety inspection — a replacement fee is collected at registration instead; emissions testing continues in 17 counties.
Source ↗Voter registration is filed in the county of residence; the registration deadline is the 30th day before an election.
Source ↗The residence homestead exemption removes $140,000 of value from school taxes for an owner occupying the home as their principal residence; applications go to the county appraisal district by April 30, with late filing accepted up to two years.
Source ↗The Texas Constitution exempts the homestead from forced sale for most debts — an automatic feature of Texas homestead status, with exceptions for purchase-money, taxes, and certain liens.
Source ↗Texas registration requires 30/60/25 liability coverage — $30,000 per injured person, $60,000 per accident, $25,000 property damage.
Source ↗Texas has no personal income tax return to file; sole proprietorships are also exempt from the state franchise tax.
Source ↗Everything Texas asks of a new resident, on its own plate: the Moving to Texas guide →
Every rule on this page traces to a statute, regulation, or agency publication, listed in full on each state's own plate.
More than half the tax year — 183 days — combined with a Minnesota abode maintained by the individual or a spouse, owned or not. Any part of a calendar day counts as a day, and the statute directs individuals to keep adequate records substantiating days spent outside the state.
Form M1 with Schedule M1NR — the shared nonresident and part-year schedule — allocating income between the Minnesota-resident period and the rest of the year. Leaving mid-year counts as a part-year move only when a permanent residence is established elsewhere.
2026.1 Edition · Revised 2026-07-25 · DomusDay Research