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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Tax Migration Articles

4 articles in this category

Tax Migration8 min read

California's Billionaires Are Leaving California. Should You?

Larry Page bought $173M in Miami real estate. Sergey Brin dissolved 15 California LLCs. Peter Thiel opened an office in Wynwood. The legal framework they're using to leave California is available to anyone earning $75,000 or more. Here's the exact playbook.

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