4 ms·

An actual answer aside, why are you focusing (it seems) on either WA or NV? I'm sure you have your reasons, but if it's a state-tax-rate based reason, it would

An actual answer aside, why are you focusing (it seems) on either WA or NV? I'm sure you have your reasons, but if it's a state-tax-rate based reason, it would be a poor choice to optimize for this based on the fact that you will, as a core premise to your decision, have no income. There are a lot of cheaper places in california you could move to if you just wanted to get away from the COL of SF.

babyent 2y ago
Thanks for reading and asking the question! Yes you assumed right it is for tax reasons. I have some RSUs and other stocks that I could sell and only worry about the 15% federal.
- nrmitchi 2y ago
  I don't know what your monthly spend is, but there are income levels where you'll see 0% capital gains at both the state and federal level. Also remember that you'll only pay the tax on the _gains_ (ie, taking your cost basis into account). Moving out of a state for avoid a low-single-digit tax on _gains only_ seems like it may be an over-optimization, but you'll have to look at your specific situation.
- hot_gril 2y ago
  Not sure, but worth checking on this, I thought the tax on RSUs can follow you out of California if they were vested there.
  - brogrammernot 2y ago
    They can and will. California will go after you for them. Happened to a friend who had documented 7 months in another state.
    - hot_gril 2y ago
      Yeah, didn't think it was that easy.
  - toast0 2y ago
    Keep in mind loosness of terminology... RSUs are taxable on vesting, and California wants its piece of that, if any of the vesting happened while you were a resident or working in California. But after they vest, they're just stock, and when you sell stock, California considers the capital gains to be sourced to your state of domicile. If the OP was being loose with terminology, and the 'RSUs' to sell already vested, there's no California tax due on sale if they've moved out of state before the sale.

babyent 2y ago

Thanks for reading and asking the question! Yes you assumed right it is for tax reasons. I have some RSUs and other stocks that I could sell and only worry about the 15% federal.

nrmitchi 2y ago
I don't know what your monthly spend is, but there are income levels where you'll see 0% capital gains at both the state and federal level. Also remember that you'll only pay the tax on the _gains_ (ie, taking your cost basis into account). Moving out of a state for avoid a low-single-digit tax on _gains only_ seems like it may be an over-optimization, but you'll have to look at your specific situation.
hot_gril 2y ago
Not sure, but worth checking on this, I thought the tax on RSUs can follow you out of California if they were vested there.
- brogrammernot 2y ago
  They can and will. California will go after you for them. Happened to a friend who had documented 7 months in another state.
  - hot_gril 2y ago
    Yeah, didn't think it was that easy.
- toast0 2y ago
  Keep in mind loosness of terminology... RSUs are taxable on vesting, and California wants its piece of that, if any of the vesting happened while you were a resident or working in California. But after they vest, they're just stock, and when you sell stock, California considers the capital gains to be sourced to your state of domicile. If the OP was being loose with terminology, and the 'RSUs' to sell already vested, there's no California tax due on sale if they've moved out of state before the sale.