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The headline and most of the article is misleading, implying that you can leave the state to avoid paying taxes on deferred income like RSUs. You can't. A smal
by kingnothing 7y ago
The headline and most of the article is misleading, implying that you can leave the state to avoid paying taxes on deferred income like RSUs. You can't.
A small blurb of truth from TFA: "California imposes an income tax on shares vested in the state, but does not tax stock that is sold after someone moves away."
This means that the company you work for is going to sell and send the proceeds from basically 40% of your RSUs to the Fed + California governments to pay owed tax, even if you don't life in California at the time the company goes public or has another liquidity event. Anything you hold longer that is subject to capital gains wherever you live.
https://www.ftb.ca.gov/forms/misc/1100.shtml https://www.ftb.ca.gov/forms/misc/1100.shtml