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For example, for lower personal taxes, business taxes, or to eliminate state tax altogether, you may want to claim residency in a state other than your own. You might alternatively wish to incorporate your business in a state having no state income tax. In addition, you may choose to seek residency in a different state for the purpose of securing in-state tuition at a university or college that you would be unable to attend otherwise, because of the expense of out-of-state tuition and fees.