FeaturedTax Migration19 min read

California's Two New Taxes for 2027: What SB 122 and SB 125 Actually Cost You (and the One Tax Cut Sacramento Can't Block)

On June 29, 2026, Governor Newsom signed a budget that creates two new taxes effective January 1, 2027: a sales tax on software and SaaS (SB 122) and a redesigned health plan tax (SB 125) that is expected to flow into private premiums. This guide breaks down exactly what each tax covers, what is exempt, what a real household will pay, and why the sourcing rule in SB 122 makes your address the deciding factor. It also covers what it actually takes to move your domicile to a state that taxes neither your software nor your income.

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State Tax Planning Articles

3 articles in this category

State Tax Planning18 min read

US State Domicile Planning: Tax and Estate Implications for 2026

Master the strategic distinction between state residency and domicile. Learn about the 9 zero-income-tax states, Florida's unmatched homestead protection, New York's aggressive audit tactics with 50%+ failure rates, and how to properly document a genuine domicile change.

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