RSU State Tax Relocation Calculator (2026)

California and New York don't release your equity income just because you moved. California's Franchise Tax Board applies a grant-to-vest day-count formula (FTB Publication 1100) to each RSU tranche: the fraction of calendar days you were a California resident between your grant date and that tranche's vest date is the fraction of income California taxes — even after you've already relocated to Texas or Florida.

This calculator models your exact exposure tranche-by-tranche and shows how much state tax you'd avoid by moving sooner. Paste in your grant date, vesting schedule, and planned relocation date.

How California's grant-to-vest allocation works

Under FTB Publication 1100, California allocates RSU income using this formula:

CA-taxable income = RSU value × (days as CA resident during vesting period ÷ total days in vesting period)

The "vesting period" is defined as the period from grant date to vest date for each tranche independently. A 4-year graded grant with equal annual tranches has four separate vesting periods: year 1, years 1–2, years 1–3, and years 1–4. This is why relocation timing matters differently for each tranche.

Example: You have a $4M RSU grant (4-year graded, $1M per tranche) with a January 2025 grant date. You move to Texas in January 2026 after the year-1 tranche vests:

State tax saved by moving at year 1 vs. never moving: $254,961. Federal tax is identical either way — only state changes.

When you move determines how much you save

Using the same $4M, 4-year grant from the example above:

The savings curve is steep early and flat late. Moving at grant protects 100%. Moving a year before the final vest protects only 6%. This is why executives who are already deep into a vesting cycle face a much weaker financial case for relocation — and why executives who receive new grants have a limited window to act.

California vs. New York — what's different

The allocation mechanics are similar, but with two key differences:

Domicile vs. residency — California's long reach

California is aggressive about nonresident claims. Simply getting a Texas driver's license and renting an apartment there is not enough to establish a domicile change if you still have a California home, spend significant time in California, maintain California professional licenses, or have close family in California. The FTB looks at the "closest social and economic ties" standard — not just physical presence.

Executives who relocate primarily for the RSU tax savings but maintain California ties are prime FTB audit targets. The FTB has successfully assessed tax on executives who claimed Texas domicile while spending 200+ days in California. If your relocation is real (new primary home, moved family, changed professional relationships), the tax savings are legitimate. If it's a paper move, the FTB will likely find it.

2026 state income tax rates on equity compensation

Note: California and New York do not offer preferential capital gains rates. A $5M stock sale is taxed as ordinary income in CA if held less than the federal long-term holding period, and at the same 13.3%/9.65% even on qualifying long-term gains. This significantly changes the after-tax calculus for executives with large concentrated positions.

What the calculator doesn't capture

• Blended-state W-2 complexity. Your employer will report CA- or NY-sourced income on a state W-2. You file a nonresident return in the source state and pay tax there, then claim a credit in your new state (if it has income tax). The credit prevents double-taxation but adds filing complexity and potential audit exposure.
• Domicile audit risk. If California audits your residency change, the cost of that audit (legal fees, time, stress) is real and not modeled here.
• NQDC source-income rule. NQDC distributions can also be sourced to CA/NY based on where services were performed during the deferral period. See our multi-state equity tax guide for detail.
• WA LTCG tax. Washington's 7% capital gains tax on gains over $270,000/year can apply to post-vest sales of company stock (long-term). RSU income at vest is ordinary income and not subject to it, but selling the stock later at a long-term gain is.
• Federal taxes are constant. This calculator shows only state tax differences. Federal tax — 37% ordinary income + 3.8% NIIT on net investment income — is identical regardless of your state and can be modeled in our RSU tax planning guide.

Executive Comp Advisors is a referral service, not a licensed advisory firm. We may receive compensation from professionals in our network. Content is for informational purposes only and does not constitute financial, tax, or legal advice. Executive compensation planning is highly situation-specific.