US Tax Guide for New York Residents Living in the UK
New York is one of the most aggressive states when it comes to taxing former residents. If you moved from New York to the UK, New York may still consider you a tax resident if you maintain significant ties. New York does not conform to the federal FEIE, creating additional filing complexity.
New York Residency Rules
New York determines residency based on domicile and statutory residency. If you maintain a permanent place of abode in New York and spend more than 183 days there, you are a New York resident. Even if you don't meet the statutory residency test, New York may consider you a domiciliary if you maintain significant ties (property, family, business interests).
New York does not conform to the federal FEIE. This means even if you exclude income from federal tax, New York will still tax it.
UK Tax Implications
The UK taxes worldwide income for tax residents. UK tax rates reach up to 45% plus National Insurance. The US-UK tax treaty applies with the standard saving clause.
FEIE vs FTC for New York Residents in the UK
New York does not conform to the federal FEIE. This creates a situation where:
- You can claim FEIE on your federal return
- New York will still tax the same income
- FTC may be available for New York if the UK taxes the income
FTC is more important for New York residents than for residents of conforming states.
Common Mistakes New York Residents Make in the UK
- Assuming leaving New York ends state tax residency — New York aggressively pursues former residents.
- Not updating driver's license and voter registration — Evidence of New York residency.
- Claiming FEIE without understanding New York non-conformity — New York will still tax the income.
- Not planning state tax exit before moving — State tax planning should happen before you leave.
State Tax Exit Strategy
To properly exit New York tax residency:
- Surrender New York driver's license
- Cancel New York voter registration
- Sell or rent out New York property
- Close New York bank accounts
- Document your move with a clear paper trail
- Consider establishing residency in a no-tax state before moving abroad
When to Get Professional Help
You should consider professional help if you have New York tax residency questions, foreign accounts exceeding $10,000, or complex income situations.
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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.
Scope statement reviewed 2026-08-30 · FileAbroad product/content owner