People Moving to Idaho May Get Taxed to Move to the Gem State

Over the last few years, Idaho has been vastly growing in population. It appears that many have figured out that the Gem State is a great place to live. The cost of living isn't bad, the scenery is beautiful, the lack of traffic is appealing, and the job opportunities are all reasons to make the move to Idaho. New residents are moving to Idaho from all across the country to call the Gem State home, but for some, moving to Idaho could cost them a little extra as they could be taxed to move to the state. Is it worth paying this extra fee, and how much are they paying to make the transition to Idaho?

California Taxing People Moving to Idaho

One of the states that many people moving to Idaho are coming from is California. It is easy to see why, as there is less traffic, the housing market is more affordable, there are plenty of job opportunities, and the state is growing rapidly. While the move might make sense for most, for some the move could lead to them getting taxed by California, especially if they make over $30 million per year or are looking to relocate their business from the west coast to the Gem State. How much is California taxing them to move, and is it worth it to call Idaho home? 

California Exit Tax

For most states, like Idaho, if you move, you may need to pay taxes for the previous year in that state, but after that, the taxes are gone. For California, if you leave the state, you could be paying an exit tax for up to 10 years. The California exit tax is a part of the California wealth tax and is a way to tax those who were finding loopholes to avoid taxes on assets in California by moving out of the state. Residents leaving California who are relocating their business, make over $30 million annually, or $15 million annually if married and filing individually, will be taxed 4 percent for relocating. The tax is for assets such as stocks, property, and investments. Odds are, if they are making that amount of money, the tax isn't a big deal, but for business owners, it could be the difference between moving or staying. 

Get our free mobile app

While everyone appears to want to move to Idaho for a better opportunity, for some that chance may cost them a little bit more than others. For more on the tax that some Californians face for moving to Idaho, make sure to click the link above. The good news is that if these residents move to Idaho, it means some new businesses could be on the way.