Does California have an exit tax?

California does not have a formal "exit tax" on leaving the state. However, the Franchise Tax Board (FTB) is notoriously aggressive about auditing former residents. They may claim you're still a California resident and tax your worldwide income. The key is properly documenting your domicile change and severing California ties. Without proper documentation, you could face years of back taxes, penalties, and interest.

How does California determine residency for tax purposes?

California uses a "facts and circumstances" test examining: (1) where you spend most of your time, (2) location of your spouse/family, (3) where your vehicles are registered, (4) where you're registered to vote, (5) location of banks and financial advisors, (6) where professional licenses are held, (7) location of social and religious connections, (8) where your estate documents are executed. No single factor is determinative—the FTB looks at the totality.

How long does the California FTB audit former residents?

California can audit you for up to 4 years after you file your final California return (or up to 6 years if they claim you underreported income by 25%+). Many former residents report FTB audits 2-3 years after leaving. This is why maintaining documentation of your Florida ties is critical for years after your move.

Can California tax me on income earned after I leave?

If California considers you still a resident, they'll tax ALL your income regardless of where it's earned. Even if you establish Florida residency, California can tax "California-source income" (income from work performed in CA, rental property in CA, or CA-based business income). Stock options and deferred compensation from CA employers may also be partially taxable to California.

What is the "safe harbor" rule for leaving California?

California's safe harbor rule states that if you're domiciled outside California for the entire year AND you're in California for 45 days or less during that year, you're presumed to be a nonresident. However, this is just a presumption—the FTB can still challenge it if other factors suggest residency. Most tax advisors recommend staying under 45 days in California during your first full year of Florida residency.

How much can I save by moving from California to Florida?

California's top marginal rate is 13.3%—the highest in the nation. For someone earning $200,000, potential state tax savings could be $15,000+ annually. For $500,000 in income, savings could exceed $40,000. Florida has no state income tax on wages, investment income, or retirement income. Individual situations vary—consult a tax professional.

Do I need to sell my California home to establish Florida residency?

You don't need to sell your California home, but keeping it increases FTB scrutiny. If you keep a CA home, it should be rented out (not available for your use), you should spend minimal time there, and you need strong documentation of your Florida domicile. Many tax advisors recommend selling or converting to investment property within 1-2 years of leaving.

What documents should I keep to prove I left California?

Maintain: Florida driver's license, Florida voter registration, Declaration of Domicile filed in Florida, lease/deed for Florida residence, utility bills in Florida, records of time spent in each state (calendars, travel receipts), Florida vehicle registration, Florida professional licenses, updated estate documents (will, trust) executed in Florida, and records of California ties severed with dates.

California → Florida Tax Migration

Escape California's 13.3% Tax Rate

Join thousands of Californians saving $7,000-$50,000+ annually by establishing Florida residency. We help you navigate the FTB, document your move properly, and protect yourself from California's aggressive tax audits.

Start My Florida Residency Calculate My Savings

Your California Tax Savings

See how much you could save by moving from California to Florida

Your Annual Income

$150,000

🌴

California

$10,703/year in state tax

Up to 13.3% marginal rate

🌞

Florida

$0/year in state tax

0% state income tax

YOUR ESTIMATED ANNUAL SAVINGS

$10,703

That's $107,030 over 10 years

*Estimate based on California 2024 tax brackets. Individual results vary. Consult a tax professional.

How to Leave California the Right Way

Our 5-step process protects you from FTB audits

Document Your Intent to Leave California

Establish clear evidence of your intent to make Florida your permanent home. This includes creating a timeline, documenting your reasons, and preparing for the FTB's scrutiny.

Set Up Your Florida Address & Virtual Mailbox

Get a legitimate Florida residential address. Complete USPS Form 1583 with remote notarization. Your mail will be scanned and accessible from anywhere.

Obtain Florida Driver's License & Update Voter Registration

Surrender your California license and get a Florida license. Register to vote in Florida. These are two of the strongest indicators of domicile.

Sever California Ties Systematically

Close California bank accounts, update professional licenses, move financial advisors, and cancel California memberships. Document everything for potential FTB audit.

File Your Final California Return & Maintain Florida Ties

File a part-year return for California. Going forward, build Florida ties: register vehicles, update estate documents, and maintain organized records of your Florida activities.

In-Depth Guide

How to Leave California Residency: Complete 2025 Guide

Everything you need to know about FTB audits, safe harbor rules, and documenting your move.

Read Guide

California Exit FAQ

Common questions about leaving California for Florida

Ready to Leave California Taxes Behind?

Join thousands who have made the move to Florida. We'll help you establish proper residency and protect yourself from FTB audits.

Start My Florida Residency Have Questions? Contact Us