Not all domiciles are created equal, but Florida, Texas, and South Dakota consistently rise to the top as the best for American nomads.
For digital nomads and entrepreneurs within the United States, choosing a legal domicile state isn’t just a paperwork formality—it can impact your taxes, insurance, banking, and long-term freedom. Among the top contenders, Florida, Texas, and South Dakota consistently rise to the top. But which one is best for your nomadic lifestyle?
In this guide, we’ll break down the pros and cons of Florida vs Texas vs South Dakota for nomads, so you can make an informed decision on where to establish your U.S. home base—while still enjoying the world as your backyard.
Why Domicile Matters for American Nomads
Domicile refers to your permanent legal residence, not just where you happen to be living. It determines which state can tax your income, where you register your vehicle, where you vote, and more. For nomads—especially those who travel internationally or full-time in an RV—choosing a state with favorable policies is essential.
Establishing the right domicile lets you legally minimize taxes, simplify bureaucracy, and avoid headaches with the IRS or local governments.
Key Factors to Consider When Choosing a Domicile
When deciding on your domicile state, here are key elements to evaluate:
- State income tax (or lack thereof)
- Residency requirements—can you establish it remotely?
- Vehicle registration and renewal ease
- Driver’s license renewal policies
- Voter registration logistics
- Access to affordable health insurance
- Nomad services like mail forwarding or legal address providers
Florida for Nomads
Florida is a well-rounded option for nomads, with robust infrastructure and favorable policies.
Pros:
- No state income tax, which can save thousands annually
- Access to ACA health insurance with broad provider networks
- Numerous mail-forwarding services, such as St. Brendan’s Isle, make residency setup easy
- Recognized by courts as a valid domicile for full-time travelers
- Relatively easy to register a vehicle and obtain a driver’s license
Cons:
- Higher car insurance rates in some counties
- May require occasional in-person renewals for documents
Best for: International nomads or boaters needing a solid U.S. legal base with good healthcare options
Texas for Nomads
Texas is extremely popular among full-time RVers and road-based nomads due to its strong community and infrastructure.
Pros:
- No state income tax
- Home to the Escapees RV Club, which offers full-service domicile support (legal address, DMV help, voting)
- Flexible driver’s license renewal policies
- Strong support network of fellow nomads and service providers
Cons:
- Health insurance options through ACA are limited and can be costly
- Urban areas may have high property taxes (though not an issue if you’re truly nomadic)
Best for: RV-based nomads and those wanting a built-in community and nomad-specific services
South Dakota for Nomads
South Dakota is arguably the easiest state for establishing a legal domicile with minimal physical presence.
Pros:
- No state income tax
- Only requires a one-night stay in the state to establish residency
- Extremely streamlined DMV process—often praised as the fastest and most hassle-free
- Many nomad-friendly services in places like Sioux Falls and Box Elder
- Very low ongoing requirements to maintain residency
Cons:
- Health insurance options are sparse and often out-of-network for nomads
- Fewer built-in nomad communities compared to Texas
Best for: Simplicity seekers and international nomads who need to establish domicile with the least friction
Side-by-Side Comparison
| Feature | Florida | Texas | South Dakota |
|---|---|---|---|
| State Income Tax | ❌ None | ❌ None | ❌ None |
| Remote Residency Setup | ✅ Easy | ✅ Easy | ✅ Very Easy |
| Vehicle Registration | ✅ Moderate | ✅ Easy | ✅ Very Easy |
| Health Insurance Access | ✅ Strong | ⚠️ Limited | ⚠️ Very Limited |
| Nomad Support Services | ✅ Moderate | ✅ Strong | ✅ Niche |
| Community for Nomads | ✅ Some | ✅ Large | ⚠️ Smaller |
Common Mistakes to Avoid When Choosing a Domicile
- Assuming “no taxes” means no paperwork: Even in states with no income tax, you’ll still need to manage vehicle registration, driver’s license renewals, and health insurance.
- Not updating your legal address: Failing to update banks, the IRS, and other institutions can cause major headaches.
- Ignoring health insurance implications: Some states like South Dakota offer little to no in-state health plan options that work nationwide.
- Choosing a state for the wrong reasons: Just because a state is “cool” or has family nearby doesn’t mean it’s the most practical for a nomadic lifestyle.
Which State Is Best for You?
Here’s a quick breakdown based on your lifestyle:
- International traveler: Florida is ideal thanks to healthcare access and robust mail forwarding
- Full-time RVer or U.S. road nomad: Texas wins for its supportive Escapees community and vehicle-friendly policies
- Minimalist or expat with limited U.S. ties: South Dakota is the fastest, simplest, and most friction-free option
Each of these states offers zero state income tax, but the right choice depends on your specific needs—especially when it comes to healthcare access, ease of setup, and document renewals.
Final Thoughts
Choosing between Florida, Texas, and South Dakota for nomads comes down to balancing ease, cost, and services. All three are tax-friendly, but only one may suit your lifestyle best. Whether you’re hopping between countries or driving across the U.S., setting up a strategic domicile will save you money and stress in the long run.
Don’t leave it to guesswork—pick a state that supports your freedom, not one that complicates it.
