California and the exit.
California charges nothing for moving out. Proposition 40, which would have taxed billionaires resident on January 1, 2026 wherever they lived by December, was rejected by voters on November 3, 2026.
In short, current to October 2026
- California levies no tax on leaving the state. It taxes a former resident only on California-source income, above all rent and gains on California real estate.
- Proposition 40, the 2026 Billionaire Tax Act, was rejected by voters on November 3, 2026, in the unofficial returns the Secretary of State certifies by December 11, 2026. It would have imposed a one-time tax of up to 5% on the worldwide net worth of individuals worth $1 billion or more who were California residents on January 1, 2026, valued at December 31, 2026. It would also have reached certain non-grantor trusts they funded.
- As drafted, the residency date is January 1, 2026, so a move made after it does not escape the tax. The retroactive date is widely expected to be challenged in court.
- Propositions 41 and 42 competed on the same ballot. Proposition 42, which passed in the unofficial returns, bars new taxes on personal savings and assets enacted after January 1, 2026. Where their provisions conflict, the measure with more yes votes prevails.
- When California real estate sells, escrow holds 3 1/3% of the sale price, or 12.3% of the gain by election: $100,000 or $123,000 on a $3,000,000 sale with a $1,000,000 gain. A principal residence is the common exemption.
- On $1,000,000 of income, San Francisco costs $102K a year more than Miami. Current to October 2026. Not tax advice. Confirm a sale or a move with counsel before relying on any figure.
Each address on this page was last checked against its official sources between and . The sources for each are named on its page.
Source: the Patrician.ch board, an original ranking of 100 residence addresses across 47 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to October 2026. Updated . Cite as: Patrician.ch, Does California have an exit tax? 2026 and Proposition 40, patrician.ch/answers/does-california-have-an-exit-tax/, October 2026.
