There is no California exit tax. Bills proposing a statewide wealth tax that would continue to apply to former residents for several years after they left have been introduced more than once and have not passed. California does, however, run one of the most aggressive residency-audit programs in the country through the Franchise Tax Board (FTB), and that's the real planning issue.
How California decides whether you've left
California taxes residents on worldwide income at rates up to 13.3%. It defines a resident as anyone in the state for other than a temporary or transitory purpose, and anyone domiciled in California who is outside it for a temporary or transitory purpose. The FTB looks at the whole picture of "closest connections," including:
- Where your homes are and how they compare in size and use.
- Where your spouse and children live and go to school.
- Where your business is run and where your professional licenses are held.
- Days in California versus Florida and elsewhere.
- Driver's license, voter registration, vehicle registration, bank accounts, doctors, clubs, religious affiliation, and the address on your tax returns.
Spending less than half the year in California is not, by itself, enough; a California-domiciled person who travels extensively can still be a resident. The FTB also has a presumption that people in the state more than nine months are residents.
Timing and the "trailing" income problem
- California taxes income from California sources even after you leave, including rents from California property and income from California businesses.
- Deferred compensation, stock options and sales of businesses are examined for the portion attributable to California-period work; the timing of a liquidity event relative to your move needs careful planning.
- Community-property rules can affect how a married couple's income is treated during the transition year.
The clean-move checklist
- Buy or lease the Florida home and move the family, not just yourself.
- File a Florida Declaration of Domicile, get a Florida license, register to vote and apply for homestead. See how to establish Florida residency.
- Sell or materially downsize the California residence, or at minimum stop treating it as home.
- Move the business and professional affiliations where practical.
- Keep a day log for several years and file a California part-year return (540NR) for the year of the move.
Why Boca Raton, specifically
South Florida has a dozen luxury markets. Relocating families keep choosing Boca Raton because it combines things the others split up: a real downtown (Mizner Park, Royal Palm Place, the Boca Raton Museum of Art and The Boca Raton resort), five miles of mostly uncrowded beach, a dense cluster of private golf and yacht clubs, strong public and private schools, two international airports within about 30 minutes, a Brightline station for Miami and Orlando, and an executive airport for private aviation right in the city.
East Boca Raton, east of I-95 and especially east of Federal Highway, is where most relocating buyers at the top of the market settle: the deep-water estates of Royal Palm Yacht & Country Club, the Intracoastal homes of Lake Rogers Isle, the walkable Golden Triangle, the private-club life at St Andrews Country Club, and the oceanfront and Intracoastal condominiums along A1A and downtown.
This page is general information for people considering a move to Boca Raton. It is not tax, legal or financial advice. Rates, exemptions and deadlines change; verify current figures with a CPA or attorney licensed in the states involved.
