There's no 'exit tax,' but these states can still cost you when you leave

We've each heard the look "you couldn't wage maine to unrecorded there." But what astir states that find ways to marque you wage much to unrecorded there, oregon taxation you erstwhile you determination away?

Though the word "exit tax" is misunderstood — nary authorities charges a taxation simply for leaving, to beryllium wide — places similar California, New Jersey, New York and Massachusetts levy taxes connected those who relocate but clasp ties to their erstwhile home.

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Some of those aforesaid states are among those looking to enforce wealthiness taxes connected their richest residents, which critics pass could enactment arsenic an inverse to an "exit tax" — forcing affluent residents retired to debar paying it portion little earners prime up the tab for the billions successful mislaid taxation gross (1).

And that's important info arsenic the federation undergoes a migration of residents from high-tax (often blue) states to those with little oregon nary income taxes.

The National Taxpayers Union Foundation recovered that, betwixt 2015 and 2025, an exodus of residents from New York and California outgo those states much than $100 cardinal each successful nett adjusted gross income, with Florida and Texas reaping galore of the losses (2).

A Realtor.com investigation of the latest disposable IRS information (3) reported akin migration trends, with elder economist Joel Berner explaining that "people are moving successful pursuit of affordability."

While "exit taxes" don't technically exist, determination are immoderate states wherever residents should beryllium alert of taxation laws that could interaction them if they determination away.

California: If you determination retired of California, you tin inactive beryllium taxed connected immoderate profits you gain wrong the state, beryllium it rent oregon spot gains, concern you behaviour wrong authorities lines and much (4).

If, however, you determination distant but support partial residency successful California — adjacent if it's not your main location — you're taxable to the state's taxation connected worldwide income accrued during the play you walk determination (5). So a part-time nonmigratory moving remotely from California for an out-of-state occupation could spot the income they gain during that clip taxed by the Golden State astatine up to 13.3% for precocious earners (6). Taxes besides use to things similar concern net accrued portion successful California, nary substance wherever the concern originates.