Starting in January I will move from my office in Baton Rouge, LA to begin an assignment in Beaumont, TX for the next 3-5 years (I think).
Given the duration and the fact that I have a COVID-esque 2.5% interest rate on my mortgage in Louisiana, my current plan is to keep that house and rent an apartment in Texas.
So this would put me owning a house in a low property tax state (Louisiana), but receiving income in a zero-income tax state (Texas).
For my income ($210,000), the income tax savings would easily outpace the homestead exemption on the LA house I would think.
So, what are the steps I need to take to be considered a Texas resident for tax purposes in 2026?
Is it as easy as withdrawing my homestead exemption? Do I need to switch everything to the TX apartment address?
How do I optimize my tax burden – I have a permanent house in LA but moving to TX for a few years for work?
byu/JustABREng intax
Posted by JustABREng
1 Comment
> Do I need to switch everything to the TX apartment address?
Yes. Essentially, you need to act as though this is a permanent move. Change your driver’s license, change your car registration, change your voter registration (keeping in mind that you may still be eligible to vote in local elections in LA as a property owner; check on that), change your address on all your bank and insurance paperwork and such… It’s difficult to actually do this in a way that satisfies the income-tax state’s requirements, specifically because they don’t want folks “moving” to a no-income-tax state while maintaining their residence in the income-tax state to dodge income taxes. I suggest looking up further tips for situations like this.
The fact that it’s a multi-year but not permanent move means that you likely *can* do this, but you basically need to act as though it is a permanent move, followed by a move back to LA.