If I sold RSUs that were granted in California while I was residing in Oregon, do I owe capital gains taxes to California?

[jpf81]

I have been a resident of Oregon for the entirety of 2024, and I sold the stock during 2024. The RSUs were granted while I was residing in California, though. I understand that the RSU's are subjected to CA tax withholdings since I was based in CA at the time of grants. But are my capital gains also taxed by California considering I'm no longer a resident?

Edit: Or to frame it in terms of Turbotax, the capital gains section displays the following:

Your capital gains and losses are taxable to California if the transactions occurred while you were a California resident, or if you were a nonresident and the transactions were related to property located in California.

What would "property located in California" mean in this context? When referring to the sale of stocks, are the stocks considered to be located at the seller's place of residence? Or are they located at the place in which they vested?

Thanks

[DianeW777]

Yes. With RSU's, California (CA)  taxes non-residents on the wage income to the extent that services were performed in California from the grant date to the vesting date.  See Section G of this California tax publication: Equity Based Compensation Guidelines

Your resident state will required you to include worldwide income and will give you a credit for taxes paid in CA.  See the details below.

State Returns - Assumes both states require income tax returns to be filed: 

1. Report the income on each state return that is from the nonresident state
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

In most cases complete your nonresident state first.