Your domicile is the state of your permanent home, or the state you consider your home whenever you are elsewhere. Your domicile is an important place.Domicile is intended to be permanent rather than temporary, whereas residence means living in a particular locality and requires mere physical presence. A residence is a place of some permanency, while a domicile is a true, fixed permanent home to which an individual intends to return after an absence. California considers you a resident if you're present in the state for more than a temporary or transitory purpose. But what does that mean? Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits. Residence: Domicile refers to a person's permanent legal residence, which may not necessarily be the same as their physical residence.