What’s My State of Legal Residence When I Retire? Can I keep my old one?

June 03, 2019

By Mary Benzinger

I'm asked these questions a lot. Let's look at an example: LTC Jones is a Texas resident. She owns a house in Texas, her cars are registered there and she votes there. While on Active Duty, the Servicemembers Civil Relief Act (SCRA) protects LTC Jones' right to remain a Texas resident no matter where she is stationed. LTC Jones retires from the Army and decides to live and work in Virginia were she's been stationed for the last few years. She comes to me asking how to keep her Texas residency - mostly to avoid paying Virginia state income taxes.

The answer is that in the tax year in which she retires, her military income earned while on active duty cannot be taxed by Virginia. Once off of Active Duty, she no longer enjoys the protections of the SCRA and any income earned after retirement will be taxable in Virginia. She will also be required to register in Virginia any vehicles garaged there within 30 days. Texas may no longer honor her voter registration. After she resides in Virginia for 183 days in a taxable year, she's an actual Virginia resident.

State laws vary, so if you have a question about your state of residence, contact an attorney in your area. Active duty or retired Servicemembers and their ID card holder Family Members may be eligible for free legal assistance.  To find a legal assistance office near you call your nearest military installation or go to http://legalassistance.law.af.mil/content/locator.php.

Mary Benzinger is the Army Legal Assistance Attorney at the Pentagon Joint Legal Assistance Office, Washington, D.C.