🚚 Geographic Tax Arbitrage

State Tax Exodus Simulator

Compare your true net annual tax savings when moving from a high-tax state (CA, NY, NJ, MA, IL) to a zero-income-tax state (TX, FL, WA, NV, TN), explicitly subtracting higher property taxes.

From (Origin)

To (Destination)

Filing Status

Annual W-2 Income $300,000

Annual Capital Gains $100,000

Relocation Pay Cut (%) 0% ($0/yr)

Origin Home Value

Dest. Home Value

Origin Property Tax (%)

Dest. Property Tax (%)

Net Annual Tax Savings

+$27,900

Income tax savings outweigh property tax differences.

10-Year Compounded Impact

+$385,478

Invested annually at 7% real market return.

Annual Tax Category	Origin (CA)	Dest. (TX)	Difference
State Income & Cap Gains Tax	$31,700	$0	-$31,700
Estimated Annual Property Tax	$9,000	$12,800	+$3,800
Employer W-2 Relocation Pay Cut	$0	-$0	-$0
Total Annual State + Property Tax	$40,700	$12,800	-$27,900

Key Relocation Caveats

RSU & Stock Option Clawbacks: High-tax states like CA and NY tax equity compensation pro-rata based on workdays spent in-state between grant and vest/exercise. See our RSU Vesting Calculators.

Mortgage Rate Lock-In: Property taxes are assessed on home value regardless of your loan, but trading a 3% mortgage for a 6.5%+ rate can outweigh state tax savings.

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Real-World Case Study

What It's Like Living in Texas as a California Native

Read our firsthand breakdown of moving from Silicon Valley to Dallas, covering property taxes, lifestyle tradeoffs, and FI/RE math.

Read Case Study →

❓ Common Questions

Frequently Asked Questions: Moving for Tax Savings

Key nuances on property taxes, Washington capital gains, and Prop 13.

Does moving from California to Texas actually save money after property taxes?

For high earners, yes, but the breakeven depends on your income-to-home-value ratio. California taxes ordinary income and capital gains up to 13.3% (14.4% with SDI), while Texas has 0% state income tax but higher effective property taxes (~1.6% vs. ~0.75% in California). Once your household income exceeds roughly $150,000 to $200,000, income tax savings typically outweigh the higher Texas property tax bill.

Does Washington state really have zero tax on capital gains?

No. While Washington has 0% tax on W-2 wages, it imposes a 7% excise tax on long-term capital gains above the annual statutory threshold ($270,000 in 2024, indexed for inflation, plus an additional 2.9% tier above $1,000,000 enacted in 2025). This simulator models Washington capital gains tax automatically.

How does Prop 13 affect California vs. Texas property tax comparisons?

Under California Proposition 13, assessed home values can only rise 2% per year for existing owners, meaning long-term California homeowners often pay well below 0.75% of current market value. You can override the origin and destination property tax rates in the calculator to match your exact tax bill.

What about the $10,000 SALT deduction cap?

If you itemize deductions, state income taxes and property taxes share the federal SALT deduction cap. Moving to a zero-income-tax state frees up SALT cap room for property taxes, though most households taking the standard deduction see no federal offset.

Do California or New York still tax my unvested RSUs or stock options after I move?

Yes. High-tax states like California and New York tax equity compensation on a pro-rata basis using the percentage of workdays you spent in that state between the grant date and the vest or exercise date. Moving to Texas or Florida does not erase state tax on equity earned while working in California or New York.

Does a mortgage or location-based W-2 pay cut change the math?

A mortgage does not change your property tax bill, which is assessed on home value, though trading a low-rate mortgage for a higher rate increases housing costs. Many tech employers also apply a 10% to 20% geographic pay adjustment when relocating to lower-cost states, which you can model by lowering your destination W-2 income.