Hey all,
Mid-level PE professional currently based in California, with a decent amount of vested carry. Am thinking about moving to FL / TX , which as most know are both states without any state income tax.
For that vested carry which will get paid out over the next 5+ years, would I be exempt from CA state tax assuming I move to a FL / TX based firm?
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I believe carry is taxed as LT capital gains and not regular income, so you should be fine just by moving your residency regardless of whether or not the firm you work for is domiciled in CA/FL/TX. That said, I'd check with a tax professional in CA because that socialist poopscape has a habit of trying to nickel and dime people years after they leave if there's any way they can make a connection between earnings and the time you spent there.
Can confirm you'll be fine. Just did the move myself. Apart from no state tax, what is prompting the move? I moved from San Diego (incredible city) to Denver - still have state income tax but houses are cheaper.
Keep in mind, Texas has 3x the property tax than most states so the savings on state income tax might not be meaningful.
Agree with this. They get you in other ways... TX has massive property tax, FL has insane home insurance prices even if you're not in a flood zone.
Not to mention how many insurance companies are simply leaving Florida. My aunt is in Tampa and she pays 4k/month in flood/hurricane insurance and she isn't even near the water.
Care to provide an example - at $600-700k income, state taxes would be $75-100k lower; now, unless you pay that much more in property taxes (your home would be cheaper than CA), then you are still always ahead?
Do FL - why Texas?
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