California "Exit Tax" and Residency: Frequently Asked Questions

Important: general information only

This page is general information, not tax or legal advice. Tax rules change and depend heavily on your circumstances. Please consult a qualified tax professional or the California Franchise Tax Board (FTB) before making decisions.

Does California have an exit tax?

There have been proposals for a California wealth or "exit" tax, but as of this writing we are not aware of one being enacted.

When do I stop being a California resident?

California looks at the whole picture of where you live and intend to remain — not just one document. Factors can include where you spend your time, where your home, family and belongings are, where you are registered to vote, your driver's license and car registration, and where your bank accounts and professionals are located.

People who keep strong ties to California after moving can face questions from the FTB. Keeping records of your move date and new-state ties is wise.

What about my final California tax return?

In the year you move, you generally file as a part-year resident, reporting income earned while a resident plus California-source income afterward.

Steps many movers take to document a change of residency

• Get a new driver's license and register vehicles in your new state.
• Register to vote in your new state.
• Update your address with employers, banks and the IRS.
• Keep travel records and proof of your move date.
• Talk to a tax professional about property, stock options or business income tied to California.