DMarkM1
Expert Alumni

Get your taxes done using TurboTax

No.  A few items at play here.  

 

  1. If NV residency is established you pay CA tax only on CA sourced income which would include the sale of a CA home.
  2. Back in 2017, as now, there is/was an exclusion of up to $500,000 of gain on the sale of a principle residence for joint filers.  The rules are the same as at the federal level.  If you lived in and owned the home for at least 24 months in the last five years prior to the sale, you can exclude up to $250,000 of gain (500,000 for joint filers if both meet the criteria).  
  3. CA does not have a capital gains tax.  They tax all income at ordinary rates.  In other words capital gains are just part of total income. 
  4. CA, just like at the federal level, taxes marginally.  Only the part of income that exceeds each level is taxed at the next level.  For example, below are the 2017 CA tax brackets for single filers.  (Joint filers just double the income at each level)

NOTE:  If you need, the 2022 CA tax brackets are below the 2017 brackets for reference.

 

For a total taxable income of 8,500  Income is taxed as follows: up to 8,222 is taxed at 1% and from 8223-8500 is taxed at 2%. So with that in mind only the part of income over 551,473 would be taxed at 12.3%.  Only the part of income over $1M is taxed at 13.3% 

 

Keep in mind items 1 and 2 above.  This is all taxable income including any taxable capital gains.  If you qualify for the home sale exclusion then that amount is not part of total taxable income. 

 

2017

 

Tax Bracket                                 Tax Rate

$0.00+                                            1%

$8,223.00+                                     2%

$19,495.00+                                   4%

$30,769.00+                                    6%

$42,711.00+                                    8%

$53,980.00+                                   9.3%

$275,738.00+                                10.3%

$330,884.00+                                11.3%

$551,473.00+                                12.3%

$1,000,000.00+                             13.3%

 

2022 California Income Tax

Single / Filing Separately                   Tax Owed

1%                                                           $0 to $9,325                       1% of taxable income.

2%                                                          $9,326 to $22,107               $94 + 2% of the total > $9,325.

4%                                                           $22,108 to $34,892            $349 + 4% of the total > $22,107.

6%                                                           $34,893 to $48,435            $861 + 6% of the total > $34,892.

8%                                                           $48,436 to $61,214           $1,673 + 8% of the total > $48,435.

9.3%                                                        $61,215 to $312,686         $2,696 + 9.3% of the total > $61,214.

10.3%                                                     $312,687 to $375,221       $26,083 + 10.3% of the total > $312,686.

11.3%                                                     $375,222 to $625,369        $32,524 + 11.3% of the total > $375,221.

12.3%                                                     $625,370 or more              $60,790 + 12.3% of the total > $625,369.

 

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