California's 13.3% Tax On Capital Gains Inspires Move Then Sell Tactics

California's 13.3% marginal rate on capital gains combined with up to 20% federal capital gains tax and 3.8% Obamacare tax (or in some cases up to 39.6% if it can be counted as regular income) for 37.1% marginal tax favors leaving the state and establishing non-residency prior to realizing large real estate gains. Someone with significant appreciation on their primary residence who isn't working is discouraged from selling their property and may move to a low-tax state first.