Service Tax Optimization Archives

California Exit Tax & Wealth Tax: What is it & How it Applies to You

April 23, 2026December 2, 2022 by Brotman Law

Key Takeaways

So, what is the California exit tax? The California exit tax explained:
How much is the California exit tax?
Who has to pay California exit tax?
Why was the California exit tax of 2020 created?
The California Wealth Tax Proposal in a Nutshell

California is known for having some of the most significant in-state taxes in the country with a 13.3% annual income tax rate.

However, did you know that you might still be taxed even after you leave the state?

Yep! Thanks to the California exit tax legislation, depending on how much money you get from in-state activities, such as investments in real estate or business operations, you could still be treated like a Californian on your next tax return!

Join us as we walk you through the California wealth and exit tax questions, such as “what is the exit tax in california,” how much it is, who it applies to, and a deeper dive into the CA wealth tax proposal and the Assembly Bill 2088.

Why Do I Owe State Taxes This Year? (& Why so Much?) 2022 Guide

April 23, 2026October 22, 2021 by Brotman Law

If you haven’t had to pay any state taxes for the past few years but now face a liability, you might be wondering, why do I owe state taxes this year? It’s a pretty common question that many taxpayers struggle to find the answer to.

You may not even be aware that you owe state taxes this year. It all depends on how your income has changed over the previous year and whether you still have any credits or deductions available to you that were used previously to reduce your taxes.

What Is a California Sales Tax Exemption?

April 23, 2026June 18, 2021 by Brotman Law

Key Takeaways

If you own a business which produces and sells tangible goods, then you are obligated to pay sales tax to the CDTFA.
It is important to understand which types of business can get a partial or full sales tax exemption and the consequences for improperly failing to pay sales or use tax.
Other exemptions exist to avoid burdening certain organizations with the obligation to collect sales tax, and so many nonprofit or veterans’ organizations are wholly exempt.

If you own a business which produces and sells tangible goods, then you are obligated to pay sales tax to the CDTFA. There are, however, a number of exemptions to this rule, some of which apply to various types of goods and others which attach to certain buyers.