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Your comment is technically correct, but misleading. In fact California specifically does not tax ex-residents for income arising from the disposition of stock
by fiberoptick 6y ago
Your comment is technically correct, but misleading.
In fact California specifically does not tax ex-residents for income arising from the disposition of stock acquired with ISOs, which is usually the way pre-IPO employees acquire shares. This is true even if the ISOs were granted for work performed in California.
- deleted 6y ago[deleted]
- batt4good 6y agoYou should look into the recent proposed bills that target exactly this. The provision that made headlines was a wealth tax on $30MM personal wealth, however it also includes enormous income tax hikes on anything above $1MM and explicitly targets capital gains.
- jedberg 6y ago> however it also includes enormous income tax hikes on anything above $1MM It's a 1% tax hike on income over $1M, 3% on over $2M, and 3.5% on income above $5M. I wouldn't call that enormous.
- batt4good 6y agoAt rates like this, the gov't (federal and state) are collectively taking more than half my income and still can't seem to function properly. 3% is enormous on top of existing sky high CA numbers...
- octernion 6y agostill far below historical highs if you are being taxed at that marginal rate.
- siberianbear 6y agoIs this true in general? The Silicon Valley company I worked at for a long time started out with ISOs, then as the company grew scrapped ISOs in favor of NSQ (nonqualifed options) and then later scrapped those and just gave RSUs. The move from ISO->NSQ had some tax advantage to the company even though it is obviously worse for the employees.