CPA-grade: $700K earner (MFJ, W-2 + S-Corp + LTCG) compared across 7 states — income tax, capital gains, county-level property tax, business/franchise tax, vehicle registration, estate tax. Every number live from the TaxStackHub database.
Ranked by total all-in annual tax burden (federal + all state/local taxes). "Savings vs CA" is the annual tax reduction by relocating from California to each state.
| # | State | Total All-In | State Burden Only | Annual Savings vs CA |
|---|---|---|---|---|
| #1 | 🎲 Nevada BEST | $187,247 | $21,279 | +$72,383 |
| #2 | 🌞 Florida | $192,079 | $26,111 | +$67,551 |
| #3 | 🌲 Washington | $196,879 | $30,911 | +$62,751 |
| #4 | 🎸 Tennessee | $198,610 | $32,642 | +$61,020 |
| #5 | 🌵 Arizona | $205,279 | $39,311 | +$54,351 |
| #6 | ⭐ Texas | $214,123 | $48,155 | +$45,507 |
| #7 | 🌴 California BASELINE | $259,630 | $93,662 | — |
Federal burden for this profile: $165,968/year — income tax $104,526 + LTCG tax $34,313 + NIIT $7,600 + FICA $19,529. This is the same regardless of where you live. All savings differences are 100% state and local.
2026 MFJ brackets, $30K standard deduction, $184,500 SS wage base. Relocating does not change these numbers.
Income tax, capital gains, property tax by county, sales tax, business/franchise tax, vehicle registration, and estate tax exposure. All live from our state tax database.
The best state depends on your priorities. This matrix cuts through the noise.
| Your Priority | Top Pick | Runner-Up | Why |
|---|---|---|---|
| Lowest total tax burden | Nevada | Tennessee | NV: no income/CG/estate tax, lowest property tax (0.48% avg). TN close behind. |
| No state income tax | NV / FL / TX / TN / WA | — | All five have $0 state income tax. WA has B&O tax on business revenue. |
| Lowest property tax | Nevada | Tennessee | NV: 0.48%. TN Williamson Co.: 0.63%. TX Travis Co.: 2.19% — worst in comparison. |
| Business-friendly (S-Corp) | Nevada / Florida | Arizona | NV/FL: no entity-level income tax. CA: 1.5% + $800 min. TN: 6.5% excise tax. |
| Capital gains minimization | NV / FL / TX / TN | Arizona | No state CG tax. WA: 7% on gains >$262K. AZ: 2.5% flat. |
| Lowest risk + weather | Arizona | Nevada | AZ: 2.5% flat tax, no hurricane risk, stable market. NV: slightly lower tax but desert heat. |
| Estate planning | NV / FL / AZ / TX | — | WA has estate tax from $2.193M (rates to 20%). All other states: no estate tax. |
| Safest CA exit (audit risk) | Arizona / Nevada | Florida | Closer proximity to CA makes partial-year residency arguments stronger. Less FTB scrutiny than TX. |
Texas is the most common CA relocation destination (102,195 movers/year), but Travis County's 2.19% property tax rate costs ~$50,370/year on a $2.3M home versus ~$16,330/year in California under Prop 13. The $34,040/year premium significantly offsets the $83,420/year income tax savings. Nevada and Florida avoid this trap.
The top 10 questions from CA high-earners considering a move.
No — once you establish domicile in another state, California stops taxing income earned after you leave. But California-source income (rental income, CA business income) remains taxable regardless of residency. California is aggressive about auditing domicile changes, especially if you spend >546 days in CA over any 24-month period, maintain a CA home, or fail to update your driver's license, voter registration, and professional registrations.
Domicile changes on the day you establish a new permanent home. But California audits aggressively. To be safe: (1) Get a new driver's license within 30 days of moving, (2) register to vote in the new state, (3) update all professional licenses and mailing addresses, (4) spend fewer than 546 days in CA in any 24-month period, (5) sell or rent the CA home. The more ties you maintain, the higher the audit risk.
Your S-Corp remains subject to California's 1.5% net income tax and $800 minimum franchise tax as long as it's registered in California or does business there. After moving, you typically need to withdraw the CA registration and re-domicile the entity in the new state. Get a business attorney and CPA involved — the timing of entity changes relative to the move has significant tax consequences.
Texas has no Proposition 13 equivalent. Counties reassess property annually at market value. Travis County (Austin) has an effective rate of ~2.19%. On a $2.3M home, that's ~$50,370/year in Texas versus ~$16,330/year in California (Prop 13 protected at 0.71%). The $34,040/year premium erodes a large portion of the $83,420/year income tax savings for homeowners. Nevada and Florida largely avoid this trap.
Yes, but only on gains above $262,000. Washington enacted a 7% tax on long-term capital gains over $262,000 (effective 2022, upheld by WA Supreme Court 2023). On $200K in LTCG, you owe $0 in WA. On $300K in LTCG, you owe $2,660. Additionally, Washington has a Business & Occupation (B&O) tax of 1.75% on gross service revenue — an extra tax for S-Corp owners with no expense deduction.
Nevada is genuinely excellent for high earners on taxes. Considerations: (1) Housing market in Las Vegas is different from SF/LA; (2) Nevada has a Modified Business Tax on payroll over $62,500 at 1.378% — modest but real for S-Corp owners; (3) Nevada's AB 489 caps property tax increases at 3%/year (partial Prop 13 protection). Financially, Nevada is the #1 choice for pure tax minimization in this comparison.
For most CA high-earners, yes. Arizona's 2.5% flat tax means you still pay $17,500 state income tax on $700K (versus $0 in TX), but Arizona's property tax is much lower than Texas (Maricopa County ~0.59% vs. Travis County 2.19%). The net annual savings for AZ (~$76,900) is less than NV (~$116,607), but predictable and manageable. Arizona is often the "Goldilocks" move.
(1) Texas property tax trap — $34K/year more than CA on a $2.3M home in Austin. (2) Florida hurricane insurance — coastal $2.3M homes average $15K–$40K/year versus $2K–$5K in CA. (3) Tennessee sales tax — 9.55% combined (highest in US); a $700K earner spending $150K annually pays ~$14,325/year in TN sales tax versus $13,275/year in CA. (4) Washington B&O tax — 1.75% on gross service revenue with no expense deduction.
California taxes long-term capital gains as ordinary income at your marginal rate — 13.3% at $700K+ income. On $200K in LTCG, California charges $26,600. Texas, Florida, Tennessee, and Nevada charge $0. Arizona charges $5,000 (2.5% flat). Washington charges $0 on $200K (below the $262K threshold; 7% on the excess above $262K). If you have large unrealized gains, the CA LTCG escape alone can justify the move — $26,600/year is real money.
Yes — especially for California exits. A CPA specializing in CA domicile changes can help you: (1) time the move to minimize partial-year CA income tax, (2) properly wind down CA entity obligations, (3) establish documentation to withstand a CA FTB audit, (4) navigate capital gains recognition strategy. The stakes at $700K+ income justify the professional cost. Find a CPA through our affiliate program →
This guide covers one specific profile. Your income, S-Corp structure, home value, and situation are different. Use our tools to model your exact scenario.
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