There is no California exit tax scheduled to take effect.
While there have been legislative proposals to implement an exit tax or wealth tax in California, none have been enacted into law. Here’s a brief overview:
Legislative Proposals
- Assembly Bill 2088 (2020)
- Overview: Proposed a 0.4% annual wealth tax on net worth exceeding $30 million for single and married taxpayers filing separately, and $60 million for married taxpayers filing jointly.
- Exit Tax Provision: Included measures to tax former residents for up to ten years after they left California.
- Status: The bill did not pass and was not enacted into law.
- Reference: California Legislative Information – AB-2088
- Assembly Bill 310 (2021)
- Overview: Similar to AB 2088, aimed to impose a wealth tax on high-net-worth individuals.
- Status: The bill did not advance and was not enacted.
- Reference: California Legislative Information – AB-310
- Assembly Bill 259 (2023)
- Overview: Introduced to impose a wealth tax with provisions affecting former residents.
- Status: As of October 2023, the bill has not been passed into law.
- Reference: California Legislative Information – AB-259
Current Tax Obligations When Leaving California
- Residency Status: California taxes individuals based on residency. If you move out of state and become a nonresident, you are generally taxed only on income sourced from California.
- California Source Income: Income from California real estate, businesses, or other sources within the state remains taxable.
- Reference: Franchise Tax Board Publication 1100 – Taxation of Nonresidents and Individuals Who Change Residency
Conclusion
As of October 2023, there is no scheduled California exit tax set to take effect. Legislative efforts to impose such a tax have not been successful. Always refer to official sources or professional advisors for the most current information regarding tax laws.
Disclaimer: The information provided is for general informational purposes and should not be considered legal or tax advice. Tax laws are complex and subject to change. For advice specific to your situation, consult a qualified tax professional or refer to official IRS resources.