I think is more complex than that. The examples here give some good idea on different scenarios: https://www.ftb.ca.gov/forms/misc/1004.pdf https://www.ftb.ca.g

I think is more complex than that. The examples here give some good idea on different scenarios: https://www.ftb.ca.gov/forms/misc/1004.pdf https://www.ftb.ca.gov/forms/misc/1004.pdf I don't think your statement paints a full accurate description of the situation though. They don't tax on you on capital gains that happen once you become a resident of a different state. So even though you have to pay the AMT for the vested - exercised options, you don't have to pay taxes to California at the time of selling your shares (this is, in theory, the only thing that really matters because it's the event that allows you to convert your shares into cash). I might be wrong, so for anyone curious just read the document linked above.