@Steve ****
yes that's exactly what it means. As others have said the us considers all citizens residents and pay any taxes due, and states follow suit. The best strategy if you live in high tax states, is to move long enough to claim residence in a no tax state. Then move to Thailand. However many high tax states can be very aggressive in challenging your move,.so best to read up on the subject and do it carefully and thoughtly. I.e. move bank accounts out of the high tax state. I read one article that some state was successful solely based on a pet, maybe left with a relative the article didn't explain the exact situation. Drivers license, new mail address, bank accounts, anything that can tie.you to that state. If you have very little income probably not worth their time.