California residency for tax purposes

California residency rules for San Diego movers

The Franchise Tax Board (FTB) taxes a mid-year mover's California income at the rate on the mover's total income for the year.
FTB presumes residency after more than nine months in California in a year.
Californians who work outside the state under an employment contract for at least 546 consecutive days count as nonresidents under FTB's safe harbor.

A Carlsbad engineer who moves to Reno on July 1, 2026 files one Form 540NR as a part-year resident.

FTB treats two groups as residents (Publication 1031, 2025):

People in California for other than a temporary or transitory purpose
People who keep California as their permanent home while away for a temporary or transitory purpose

Status	California taxes	Return
Resident	All income, any source	Form 540
Part-year resident	All income while resident, California income after	Form 540NR
Nonresident	California-source income only	Form 540NR

FTB weighs the strength of a person's ties to California against ties elsewhere, treats no one factor as decisive and looks at:

Time: Days in California against days elsewhere.
Home: Principal home, spouse and children.
Registrations: Driver's license, vehicles, voter and professional licenses.
Money: Bank accounts and the origin of financial transactions.
People and property: Doctors, dentists, accountants and attorneys; place of worship, professional associations and clubs; real property and investments.
Work: Permanence of a California work assignment.

Limits on the 546-day safe harbor for work contracts outside California:

FTB denies it to a worker with more than $200,000 of intangible income, such as interest and dividends, in any tax year of the contract.
FTB also denies it to a worker who leaves California mainly to avoid tax.
The worker can return to California for up to 45 days in total each tax year of the contract.
A spouse or registered domestic partner who goes along for the 546 days also counts as a nonresident.

Members with a home state elsewhere stay nonresidents while stationed at Naval Base San Diego or Camp Pendleton; spouses follow the Military Spouse Residency Relief Act.

Tijuana commuters file Form 540NR on San Diego wages without a US-Mexico tax treaty exemption, since California does not follow treaty exemptions.

After a move, FTB taxes each later vest of restricted stock units (RSUs) by the share of California workdays between grant and vesting. For RSU rules at vest and sale, read how are RSUs taxed in California.

Nonresident retirees owe no California tax on pensions earned in California.

Former residents owe California tax on rent from California property and on the gain when they sell it.

The engineer owes about $7,182 on half a year's pay; a full-year resident earning $100,000 owes $5,069.

The engineer, a single filer earning $200,000 evenly in 2026 with the $5,900 standard deduction, figures the tax before exemption credits:

Movers who keep a San Diego home, bank account or driver's license after leaving can have a CPA review those ties before filing: how to choose a CPA.