California Income Tax: Do You Still Have to Pay If You Move?

Most people don’t want to pay California taxes. They end up contacting me because they are going to move to Florida, Texas or Nevada. I warn them to make sure they actually decided to relocate, move their family, move their house, move their driver’s license, move their car registration. If they’re actually moving and intend to reside in another state, they will not be subjected to California income tax.

 
 
 
 
 
 
 
  
 
 
 
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 Brandessa Hale 
 
 
 
  
I can't recommend Allison enough! She helped me successfully navigate a stressful EDD audit with expertise and grace. Not only is she incredibly smart and thorough, but she's also genuinely kind—something you don’t always expect from an attorney. Her support and guidance made all the difference. If you need a tax attorney who knows her stuff and truly cares, she's the one to call!
  
 
  
 
 
 
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 Robin Christiansen 
 
 
 
  
Thank you Allison for all of your help and knowledge, and your strong team And referrals. I am beyond grateful. You went above and beyond my expectations.
  
 
  
 
 
 
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 Dee Thibodeau 
 
 
 
  
2024- Working with Allison has been an incredibly smooth experience both times I’ve worked with her. Her expert advice and the support she provides are outstanding, and we’ve had nothing but positive results each time. 2020- I was so impressed with her work during an EDD audit. I would HIGHLY recommend Allison to anyone going through an EDD Audit. From the very first 3 minutes of speaking with her, she was super helpful and professional, while also making me feel like I was talking to a friend, which really helped calm my anxiety. Allison was dedicated to helping us achieve the best possible outcome and was honest about all scenarios, even preparing us for the worst. We ended up with the VERY best outcome because of how she guided us through the process and made sure we had everything ready to tell our story to the auditor. If you want someone who truly listens, understands your business, and will be your biggest advocate, call Allison now! Be ready because she’s quick to respond with both calls and emails.
  
 
  
 
 
 
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 Nadine Kunal 
 
 
 
  
Very thoughtful, concise, and honest advice provided. Would recommend her council to my family.
  
 
  
 
 
 
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 Alex L 
 
 
 
  
We retained the services of Allison Soares for a recent IRS audit.  The IRS was claiming we owed an exorbitant amount of money.  After interviewing several qualified attorneys, Allison was the obvious choice.  During this very stressful time for our family, we appreciated how knowledgeable and responsive she was from the very first call. Her professionalism and commitment to our case was truly impressive.  She pointed out a few critical points, that another attorney may have missed, which we believe helped our case immensely.   She guided us through this complicated process with great success and we could not have been happier with the outcome of the audit.  We are 100% satisfied with her work and would highly recommend her to anyone seeking legal tax advice.  Thank you so much Allison, we are truly grateful for all your hard work.
  
 
  
 
 
 
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 Daniel Klein 
 
 
 
  
I called this office to have a tax issue clarified for me.  I have never received more candid, honest, and  useful information.  I would highly recommend Allison Soares.
  
 
  
 
 
 
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 Parisa Ansari 
 
 
 
  
Allison Soares is incredibly knowledgeable, prompt, and helpful. Her detailed expertise in tax matters made my experience exceptional. Highly recommended!
  
 
  
 
 
 
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 Allen Wang 
 
 
 
  
I received an EDD audit letter for my small s-corp business. I feel nervous. Fortunately I found Allison. I talked with her on phone today about my business and my concern, she gave me very solid suggestions and confidence to handle this. She is very honest and I highly recommend her to anyone who has trouble with EDD audit!
  
 
  
 
 
 
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 Elie Nader 
 
 
 
  
Allison Soares is a great tax attorney. She helped my business navigate an difficult tax situation and I am very happy with the outcome
  
 
  
 
 
 
 
    
 
 

California has what’s called a residency tax on it. They’re going to go back and determine whether or not you were a resident of the state of California and therefore subjected to taxes. California looks at how much time did you actually spend in the state? Where did you go to the grocery store? Where is your SG&E bill? Where’s your electric bill? Where did you fly in and out of? What sort of professionals did you hire? Did you hire California CPAs and attorneys, doctors and psychologists? Or did you have a doctor and a psychologist and an attorney and an accountant in Florida? You need to make sure that the residency items they are going to look at is really going to show where you were residing during the period of time with an audit. It’s not just enough to say you’re going to move to another state. You really do need to actually move and become a part of that state.

If you’re planning to move out of California, it’s natural to wonder how your income taxes will be affected. The answer depends on several factors, like when you move and how much income you earn in the state. Legal guidance can help ensure you’re clear on your obligations and rights.

Individuals leaving the state with a net worth exceeding $30 million, or $15 million for spouses filing separately, may face an Exit Charge on their assets. While no standard exit tax applies, high-asset individuals should account for this specific tax obligation.

Do Out-of-State Residents Have to Pay California Income Tax?

As a nonresident living outside California, you still need to pay California income tax if you earn income from California sources. This includes income from services performed in California, rental property, or business operations within the state.