Guide · Tax Residency

The 183-day rule & tax residency, explained

How tax residency really works — the 183-day rule, each country's fiscal year, the US substantial presence test, the UK ties test, and the days-counting that decides what you owe.

Where you are tax resident usually decides what you owe — and for most people, residency comes down to one thing: how many days you spent in a country. The headline is the 183-day rule: spend 183 days or more in a country in its tax year and you are generally tax resident there.

But "generally" hides a lot, and that's where people get caught:

  • The tax year differs by country — the UK runs 6 April to 5 April, Australia 1 July to 30 June, most others the calendar year. Your day count has to line up with the right window.
  • Some countries look beyond days at your home, family and work ("centre of vital interests") and can make you resident regardless of the count.
  • The UK lowers the 183 threshold based on how many "ties" you have. The US taxes citizens worldwide and uses a weighted substantial presence test.
  • You can be resident in more than one country at once — and double-counting days is exactly how an accidental second residency happens.

This pillar covers the rules travellers ask about most:

Where Flags fits

Flags: Tax Residency counts your days in every country and all 51 US states from the dates in your photos — on your iPhone, offline, no GPS — and compares each against its own threshold and fiscal year. It flags home/family/work ties as a Review, handles the UK ties grid, and warns when you drift toward a line in a country you weren't even watching.

Flags is an early-warning tool, not tax advice. It deliberately simplifies: it does not model tax treaties, the US weighted substantial-presence formula, the Foreign Earned Income Exclusion, or every special regime. Always confirm your position with a qualified adviser. See the flag-strategy guide for the bigger picture.

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