Answers · current to September 2026

California and the exit.

California charges nothing for moving out. Proposition 40, on the November 3, 2026 ballot, would tax billionaires resident on January 1, 2026, wherever they live by December.

In short, current to September 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, is on the November 3, 2026 ballot. It would impose 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 also reaches 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 compete on the same ballot. Proposition 42 would bar new taxes on personal savings and assets enacted after January 1, 2026. Where competing measures both pass, the one 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 $104K a year more than Naples. Current to September 2026. Not tax advice. Confirm a sale or a move with counsel before relying on any figure.

Source: the Patrician.ch board, an original ranking of 100 residence addresses across 48 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to September 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/, September 2026.

On the board

The California addresses, on $1,000,000.

Effective income tax for a single filer, federal and state together, with the gap to Florida.

01
Montecito 🇺🇸 United States$104K a year more than Naples, 37% on gains
43%
02
San Diego 🇺🇸 United States$104K a year more than Naples, 37% on gains
43%
03
Newport Beach 🇺🇸 United States$104K a year more than Naples, 37% on gains
43%
04
Los Angeles 🇺🇸 United States$104K a year more than Naples, 37% on gains
43%
05
Beverly Hills 🇺🇸 United States$104K a year more than Naples, 37% on gains
43%
06
San Francisco 🇺🇸 United States$104K a year more than Naples, 37% on gains
43%

Leaving Los Angeles, ranked worldwide on what $1,000,000 keeps: moving from Los Angeles.

Sources: the 2026 Billionaire Tax Act (Initiative 25-0024), qualified for the November 3, 2026 ballot as Proposition 40. Franchise Tax Board, 2026 instructions for Form 593. The page is updated after the vote.

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Questions

The short answers.

Does California have an exit tax?

No. California charges nothing for moving out of the state.

It keeps taxing California-source income after you leave, and Proposition 40 on the November 3, 2026 ballot would tax billionaires who were resident on January 1, 2026.

What is Proposition 40?

The 2026 Billionaire Tax Act: 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.

Net worth is valued at December 31, 2026. Voters decide on November 3, 2026, alongside the competing Propositions 41 and 42.

Can I avoid Proposition 40 by leaving California now?

Not as drafted. Liability turns on residence on January 1, 2026, not on where you live when it passes.

Whether that retroactive date survives a court challenge is the open question.

Does California tax me after I move?

Only on California-source income: rent and gains on California real estate, a California business, and pay for work done in California.

The Franchise Tax Board audits the year of departure closely, so the date residence ended should be documented.

How much is withheld when I sell a California house?

3 1/3% of the sale price, or 12.3% of the gain by election, on sales over $100,000 unless an exemption applies.

On a $3,000,000 sale with a $1,000,000 gain that is $100,000, or $123,000 by election. It is credited on the return for the year of sale.

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This page is the general case. Your income and passports rank all 100 differently.

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The general case, ranked: Where should high earners live in 2026 · Best country to live in if you are rich · Best countries for high earners after tax · Europe · United States · Americans moving abroad · Tax calculator · Keep Index 2026

Tax figures use a simplified marginal model with indicative 2026 brackets for a non-US single filer, ignore social contributions, most deductions, wealth taxes, and treaties, and are not advice. Residence rules change often. Verify before acting.

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