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ARTICLE · 08 SEPTEMBER 2022

Tax Considerations Before Leaving California

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The pandemic changed the way we work in radical ways, and over the past two years, stories of a California "exodus" have abounded.

United StatesTax
Naomita Yadav
Naomita Yadav
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This article was originally published in Tax Notes on July 18, 2022.

The pandemic changed the way we work in radical ways, and over the past two years, stories of a California "exodus" have abounded.1 This article addresses a common misconception that by moving out of state, the taxpayer will reap the bounty of tax savings. In some cases, the savings may not be as material as expected, the practical/administrative costs may be too high, or the tax savings may not materialize at all. Unfortunately, as some may find out after spending much time and effort to "check out," the California Franchise Tax Board may never let you leave.

I. Keys to California Taxation: Residency and Source

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