Domicile is a technical legal term. But you need to learn the basics of it. Your income will be taxed by the state in which you are domiciled. The state of your domicile also will require your estate to be probated there and subject to its estate or inheritance taxes. Here are the major steps you need to take to clearly abandon an old domicile and establish a new one. You don’t have to take each step, and there is no one step that is vital. A state will look at the preponderance of the steps you took to determine if you abandoned your old domicile.