Choosing an RV domicile is a big decision before hitting the road to full-time RV. An RV domicile is a state you call “home”. This choice will determine how much taxes you pay, what laws affect you, and other important factors.
This post will discuss some of the important considerations for you to think about when choosing an RV domicile. Then dive into the top 3 domicile states for full-time RVers and explain why these could work for you.
Considerations for choosing an RV domicile
There are a lot of considerations for RVers to think about before choosing a domicile. Some RVers may choose their home state to domicile in when hitting the road. Using a friend or family member’s address. But there are loads of services you can choose from as well that allow you to change your “home” state.
They will offer you a permanent address for your driver’s license, for tax purposes, and vehicle registration. Additionally, many services will receive mail and scan it for you, for easy reviewing. If you are considering switching domicile states, here are a few things you should weigh into your decision-making.
- Taxes
- Health Care Options
- Vehicle Registration & Driver’s License Renewals
- Vehicle Laws (Weight, Emissions, Inspections)
- Voting
- Homeschooling
Taxes
Since you no longer have a permanent home determining your domicile state, you have the freedom and flexibility to choose a state that has better tax rates. Most people choose a state that has no income tax but it’s also important to see if the state taxes personal property like a recreational vehicle as well. There are 7 states that do not have an income tax.
While there may be no income tax it’s also important to see if that state has inheritance or estate taxes.
- Florida
- Texas
- South Dakota
- Nevada
- Wyoming
- Washington
- Alaska
Switching to a state with no income tax could save you as much as 10% to 20% of your income each year. Which is huge if you’re in a high-tax state.
Health Insurance Options
Every state has different health care plans available to them. Unfortunately, not all states carry the same insurance plans. I won’t go into too much detail here, but ultimately as an RV’er you want nationwide PPO coverage, ideally with in-and-out-of-network coverage. Some states have better plans than others, especially if you have major medical conditions.
Vehicle Laws (Weight, Emissions, Inspections)
Another important factor to consider is vehicle laws. Some states require annual inspections of your vehicle. Meaning you need to return home each year. It also could restrict the type of vehicle you own. Research if your domicile state requires you to have a special license if your vehicle is over a certain weight or size. While you’d have to have a pretty big rig for this to apply, it’s something to look into.
Vehicle Registration and driver’s license
If you’re switching your domicile state, you’re going to have to get a new driver’s license and register your vehicle(s) in that state. It’s important to choose a state that makes this process relatively easy while also allowing for online renewals. No one wants to drive all the way across the country just to stop in at the DMV.
The DMV website for the state can shed light on this process. And if online renewals are available.
Voting
If you like to partake in our democracy and vote (we hope you do). It’s important to know if your county will allow absentee voting. Learn what the process is for becoming a registered voter in your state and country. And what the process is for voting on an absentee ballot.
Homeschooling
Full-time RVing as a family is becoming more and more popular. If you are going to have school-age children on the road with you, it’s important to know what the state requirements are for homeschooling. Some require you to use a set curriculum or register your child each year. Others require state-mandated or standardized testing.
Top RV domicile states
Now that you understand the major factors to consider before choosing an RV domicile, let’s discuss the top 3 states for an RV domicile and why. These are not the only options by any means, they are simply the most popular choices because they positively address a lot of the factors to consider when choosing a domicile.
Florida
Taxes
- No state income tax. You’re not taxed on your income from social security or pensions, nor is there estate or inheritance tax.
- No property tax on your recreational vehicle.
Drivers License & Registration
- Can renew your vehicle registration and driver’s license online.
- Higher vehicle insurance rates than other states.
Vehicle Inspections
- No special licenses for RVing regardless of weight.
- No emission laws or testing requirements.
Health Care Options
- Out of the three options, Florida is the only state with nationwide PPO in-and-out-of-network coverage with ACA. That means you can get national health care even if you have major medical conditions or pre-existing conditions. Other states have nationwide plans, but not with the ACA, which means they may deny you coverage if you have major medical concerns.
Voting
- Can vote by absentee ballot by applying here.
- Must file an intent to homeschool (only have to do this once).
- Must provide and be able to prove up to 180 days of instruction and keep a running portfolio and work samples of the curriculum taught and your child’s work.
- A child is required to be annually evaluated by a teacher with a valid teaching certificate or take a standardized or state-mandated assessment.
Mail forwarding services that can offer a “permanent” address in that state
Texas
Taxes
- No state income tax. You’re not taxed on your income from social security or pensions, nor is there estate or inheritance tax.
- No property tax on your recreational vehicle.
Drivers License & Registration
- Can renew your vehicle registration and driver’s license online.
Vehicle Inspections
- Requires a Class B non-commercial license for any vehicle over 26,000 pounds or a Class A license required for multiple vehicles with combined weight over 26,000 lb (which for very large Class A’s such as a 40ft or longer this could apply).
- Requires most gas vehicles in certain counties to pass a vehicle emission test.
Health Care Options
- Nationwide PPO plans in and out of network (although none with ACA) meaning it can be more challenging to find a quality healthcare plan if you have major medical issues or pre-existing conditions.
Voting
- Can vote by absentee ballot but must apply and be approved first and meet 1 of 4 requirements. This process makes absentee voting difficult, but it is possible.
- The curriculum is up to the parent but you must follow these three rules.
- Not required to register with the school district or state. Nor do you need to provide state assessments such as standardized tests.
Mail Forwarding Services with Address in that State
- Escapees
- Texas Home Base
South Dakota
Taxes
- No state income tax. You’re not taxed on your income from social security or pensions, nor is there estate or inheritance tax.
- No property tax on your recreational vehicle.
Drivers License & Registration
- Can renew your vehicle registration and driver’s license online.
- Lower vehicle insurance rates than other states.
Vehicle Inspections
- No special licenses for RVing regardless of weight.
- No emission laws.
Health Care Options
- Limited nationwide PPO network healthcare plans.
Voting
- Can vote by absentee ballot but must apply.
- Must file a notification for public school exemption and receive a certificate each year.
- A child is required to take annual local or state assessments such as standardized tests.
Mail forwarding services that can offer a “permanent” address in that state
Hopefully, this blog gives you a better idea of what considerations should be made when choosing an RV domicile. As well as the pros and cons of the top 3 RV domicile states. There is no “perfect” state. Although I personally feel Florida is one of the better options because of the current health care plans available and the fact that they don’t have emissions testing or special licensing requirements.
Before you choose your RV domicile, think about if you have friends or family you can use as a permanent address in a low-taxed state before applying for your own address. This could save you money by not having to use a service.
Greetings! Very useful advice in this particular article!
It’s the little changes that make the greatest changes.
Thanks a lot for sharing!