Moving from California

California sent about 690,000 people to other states in 2023 and took in about 422,000, the largest outbound flow in the country.

  • Most of the exit paperwork is simple, but two pieces of it are easy to miss: the address change is due within 10 days whether or not the car goes with you, and residency for tax purposes does not end just because you told another state you live there now.
  • This page covers every California-origin route we track.
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California at a Glance

Taxes

State income tax13.3%
State sales tax7.25%
Property tax (eff.)0.7%

Climate

Avg annual temp59°F
Annual precipitation22″

Diverse climate from Mediterranean coast to hot interior valleys and alpine mountains.

Cost of Living

COL index140.5 (US=100)
Avg electric bill$161/mo

Why People Move from California

Cost is the usual reason, and the cost data is not subtle.

  • In MERIC's cost of living series California ranks behind only Massachusetts and Hawaii, and its housing component sits at 192.1 against a national average of 100.
  • The top income tax bracket is 13.3 percent, the highest state rate in the country.

Where people go is mostly a Sun Belt and Pacific Northwest story.

  • Texas received about 94,000 Californians in 2023, then Arizona at about 54,000, Nevada at about 42,000, Washington at about 41,000, and Florida at about 39,000.
  • Oregon follows at about 34,000.
  • The traffic runs both ways with several of those states: Texas sent about 39,000 people back, and New York, Washington, and Nevada each sent more than 22,000.

Before You Leave California

Report the address change to DMV within 10 days

The 10-day deadline applies whether or not the car moves with you. It covers your license, vehicle, and vessel records. If a registration renewal notice reaches you after the move, do not ignore it. On the back of the stub, write the date the vehicle left the state and the state where it is now registered. Mail it in to close the record.

Source: California DMV, Moving Out of State

Your last return is Form 540NR, not Form 540

A part-year resident was a resident for part of the year and a nonresident for the rest. For the year of the move, you file Form 540NR. The filing thresholds use the same gross income and adjusted gross income tables as for full-year residents. You may still have to file even below them.

Source: FTB Publication 1031, Guidelines for Determining Resident Status

Declaring residency somewhere else does not end it here

Residency depends on where your closest connections are. The Franchise Tax Board looks at where your family lives, where you keep bank accounts, where your doctors and attorneys are, where you own real property, and how permanent your work here was. In its own example, a taxpayer declared residency in another state and moved the bank accounts. That taxpayer was still a resident, because the home, the social ties, and most of the year stayed here. A separate safe harbor covers people who leave under an employment contract. It requires an uninterrupted absence of at least 546 days. It does not apply if intangible income tops $200,000 in a covered year, or if the main purpose of leaving was to avoid the tax.

Source: FTB Publication 1031, Guidelines for Determining Resident Status

Tell the county assessor to end the homeowners exemption

The exemption stays on the roll until someone removes it, and the claimant must report that they no longer qualify. December 10 is the last day to end it without a penalty. Even if you move early in the year, send the notice before that date.

Source: California Board of Equalization, Homeowners Exemption

California DMV & Registration

Report the address change to DMV within 10 days of moving.

  • That deadline applies to your license, vehicle, and vessel records, and it applies whether the car is coming with you or staying registered here.
  • If a registration renewal notice catches up with you after the move, write the date the vehicle left the state and the name of the state where it is now registered on the back of the stub and mail it back, which is how the record gets closed.
  • Your destination state, not California, sets the deadline for switching the license itself.
Official California DMV →

Frequently Asked Questions

Do I have to tell the California DMV I moved out of state?

Yes, within 10 days.

  • Use the online change of address form or file a Change of Address (DMV 14).
  • It covers your driver license, vehicle, and vessel records at once.
  • If you later get a registration renewal notice, write the date the vehicle left California and the state where it is now registered on the back of the stub and mail it in so the record is updated.

Do I owe California income tax after I leave?

For the year of the move you file Form 540NR as a part-year resident rather than Form 540.

  • Whether your residency actually ended is a facts test, not a declaration: the Franchise Tax Board looks at where your family lives, where your bank accounts and real property are, where your doctors and attorneys are, and how permanent your work here was.
  • Its own published example has a taxpayer who declared residency in another state and moved the bank accounts, and was still treated as a California resident because the home and most of the year stayed here.

What states do most people move to from California?

Using Census ACS 2023 state-to-state flows: Texas (about 94,000), Arizona (about 54,000), Nevada (about 42,000), Washington (about 41,000), and Florida (about 39,000), followed by Oregon at about 34,000.

  • Texas, Nevada, Washington, and Florida have no state tax on wage income.

What happens to my homeowners exemption when I sell or move out?

It stays on the assessment roll until you take it off, and the claimant is responsible for telling the county assessor they no longer qualify.

  • December 10 is the last day to terminate it without a penalty, so notify the assessor in the county where the property sits rather than waiting for the next tax bill.

Is there a California exit tax?

There is no separate departure tax.

  • What there is instead is a part-year return on Form 540NR for the year you move, plus continued tax on income sourced here after you leave, such as rent from a California property.
  • The residency question is where the real exposure sits, not a one-time exit charge.

Does the 10-day driver license rule apply when I leave California?

No.

  • The 10-day rule in the Vehicle Code applies to people establishing residence in California, not leaving it.
  • Your destination state sets its own deadline for getting a license there.
  • The California 10-day deadline that does apply to you on the way out is the address change with DMV.