I know that if I have lived in my home for at least two years in the state of California and I sold it with a gain, that I my wife and I together have an exemption from any federal income tax on the gain for up to 500k. This home was never a rental and always our primary residence. My question is about that tax on the gain for the state of California. Since we are exempt from Federal Income Tax, are we also exempt from the State of California Income Tax on any gain or is there still a tax on the gain and if so, how would it be taxed? As income tax, or as a long term capital gain tax?
Thanks for the help.
