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100% remote worker moving to FL or TN from CA

Hi -

I have always been 100% working remotely for a CA-based company, and interested in moving to either TN or FL and purchasing property to reside and partially rent out.

 

Which is better for state income taxes, as well as property taxes?

 

I'm assuming I would not be paying any CA state taxes either way, right?

 

Thanks for your guidance,
J

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1 Reply
TeresaM
Expert Alumni

100% remote worker moving to FL or TN from CA

Generally, you are taxed by the state where you performed the services, not by the state of the headquarters for the company that pays you. However, in these times with so many people working remotely, some states are becoming very aggressive about their tax revenue and I would recommend keeping an eye on possible changes. Neither Tennesse nor Florida taxes individual earned income. If you were present there when you performed the work, you would not need state withholding or to file a state return and California would not require you to file a non-resident return unless you had California sourced income.

State and local governments all need tax revenue and receive it from a variety of sources. Some of those are state-wide, and some are locally designated. A county or city in Tennessee or Florida where you settle may have additional sales tax over and above the state sales tax and property taxes can vary considerably from county to county. Some counties/cities also have personal property taxes on vehicles. It may be more beneficial for your finances to have a higher sales tax and lower property taxes, or vice versa. Please consider these areas when you compare different places to settle. You can look up the sales tax rates on the state websites and you can usually look up the history of a home's property taxes on the county site.

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