5 Easiest US States for Tax Residency in 2025

+ update for expats in Portugal

Author

Mike Berner
August 12, 2025

Hey everyone. In case you missed our previous announcement, Nomad Deals newsletter is now Americans Abroad. You can read the full details here.

As a reminder, we are temporarily moving to a bi-weekly schedule, so the next edition will go out Tuesday, August 26. We got big plans in store, so stay tuned!

Mike

THIS WEEK ABROAD

Welcome to the premiere issue of Americans Abroad, the newsletter for U.S. citizens living overseas who want to live well and stay financially sharp.

In this edition: an important message for expats in Portugal, along with our report on the best US states for tax residency in 2025.

Let’s dive in 👇

Residency Radar

🌍 NEW PORTUGAL RESIDENCE PERMIT RENEWAL SYSTEM

Important news for expats in Portugal: the Immigration Authority (AIMA) just launched a new online portal for residence permit renewals. Applicant with expiring permits can register on the platform, then apply for permit renewals directly.

What Changed?

Under the previous system, foreign residents had to make appointments with the Institute of Registries and Notary (IRN). As of August 2025, the IRN will no longer accept new renewal requests. Applicants who previously scheduled an appointment will be contacted and redirected to the new system.

➡️Now Read: Learn more about your tax resident obligations in our guide to US expat taxes in Portugal.

Video of the Week

GET YOUR FLORIDA DOMICILE NOW

For digital nomads, expats, and U.S. taxpayers that work remotely, Florida residency provides a pathway to eliminating state income taxes.

Establishing a domicile in the state is straightforward, with no minimum stay required. Financial benefits include zero state income tax, zero capital gains tax, zero estate tax, and strong asset protection laws.

Money & Tax Corner

💰5 EASIEST US STATES FOR TAX RESIDENCY IN 2025

One of the biggest money hacks for US nomads and expats is transferring residency to a low tax state. Choosing the right domicile - your legal home base - an save you thousands in taxes each year.

These are the five easiest states to establish residency in 2025, according to the experts at Savvy Nomad:

Florida

Florida tops the list for its no state income tax, no vehicle inspections, and simple setup. You can establish legal residency by securing a residence, driver’s license, voter registration, and (optionally) filing a Declaration of Domicile.

⚠️Cons: Requires a real residential address; mail forwarding services won’t cut it.

South Dakota

South Dakota allows nomads to use a mailbox address for residency, making it one of the easiest and fastest states to establish domicile. There is no state income tax, and setup can be completed in a day.

⚠️Cons: Mailboxes are no longer use personal mailbox address for payroll purposes, which creates major complications for most W2 employees.

Texas

Texas combines no income tax with a strong business climate and relatively simple residency requirements. It’s a great option for those running a business or spending significant time in the state.

⚠️Cons: Requires 30 days of in-state presence for residency.

Nevada

Nevada offers zero income tax and strong asset protection laws. The residency process is flexible, and hotel stays can be counted toward physical presence requirements.

⚠️Cons: Requires 30 days of in-state presence for residency.

Wyoming

Wyoming has no income or corporate tax and is a favorite for LLC formation. It’s attractive for business owners looking for long-term asset protection.

⚠️Cons: Requires a real residential address, which can be difficult for full-time nomads.

➡️Now Watch: Learn more about the pros and cons in our video on the top states for easy residency.

This newsletter is brought to you by

Save an extra 4%-21.4% of your annual income with tax-savvy strategies. Change your domicile in the US: let Savvy Nomad handle the hassle.