While, unpredictably, the large metropolises came to a grinding halt and citizens stood masked, six feet apart from one another, California’s government predictably introduced new taxes and suspended business-friendly tax credits.¹ All of this, layered with remote working, Zoom meetings, and unprecedented low interest rates, created a perfect storm in which, for the first time, California experienced a net decrease in its population in 2020.² Despite the state’s gradual reopening, many Californians are continuing to work from home and some are beginning to contemplate whether they, too, should exit the Golden State. While many residents may wish to socially distance themselves from California to escape taxation, physically moving out of the state is only the tip of the iceberg when it comes to terminating California tax residency.

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1. Reed Smith, “Groundhog Day in California — Tax Attribute Limitations and False Claim Act Expansion Strike Again” (July 6, 2020).
2. Shawn Hubler, “A New Demographic Surprise for California: Population Loss,” The New York Times, May 7, 2021.