You accepted a Nashville or Memphis role and still have RSU vests on the calendar. You need to know which vests California may still tax after you leave, and why Tennessee adds no state layer on post-move vest wages.
In plain terms
Gather before you start
- Move date and Tennessee residency documentation.
- schedule through move year and next year.
- California state wage boxes before and after move.
- confirmations with and .
- move-between-states calculator with CA and TN selected.
How the tax works
Tennessee does not tax wage income at the state level. When you as a Tennessee resident with no California work connection, your is still federal wage income on Box 1 — but there is no Tennessee state return line for that the way California has on Form 540.
California taxes as wages for residents and may source equity to California under FTB rules for work performed or residency while you lived there. A March while you still leased in San Francisco is a different tax story than a November after you established Tennessee domicile — even if the same employer runs payroll.
Your move year may show California state wages and on pre-move vests, then federal-only on post-move vests once payroll updates residence. Request HR to change residence promptly; continued CA after a bona fide move wastes cash flow until you reconcile on a part-year California return.
Remote work from Tennessee for a California employer does not automatically make every Tennessee-only. FTB may still argue California sourcing if your role remained tied to California offices or you performed work in CA after claiming TN residence — facts matter more than the metro you moved to.
Federal supplemental and FICA apply regardless of the move. Losing California state tax on post-move vests lowers total but can widen the federal gap if you still sit in high federal brackets — run the gap calculator with both scenarios.
What to check on your end
- Each vs California move date.
- Whether you performed work in CA after claiming TN residence.
- CA state wages and on after move.
- Payroll residence update timing with HR.
- Part-year Form 540 or 540NR requirement.
- Federal gap after losing CA state layer on post-move vests.
- TN pay stub — federal and FICA only for typical resident.
1 more checklist item
- Move-between-states calculator output for planning.
Assuming Tennessee residency instantly ends all California RSU tax
What to pull from your files
- confirmations for move year.
- CA and federal boxes.
- Lease, domicile, or voter registration showing move date.
- Pay stubs before and after move.
- Employer equity portal schedule.
Bay Area to Nashville mid-year with Q2 and Q4 vests
Illustration only, not your tax situation.
Questions people ask
- Does Tennessee tax RSU vests after I move from California?
- No state income tax on wages for typical TN residents. Federal and FICA still apply.
- Will California tax vests after I leave?
- California may tax income connected to your CA residency or work period. Vests before your move or while performing CA work may remain CA-connected.
- Which calculator helps for CA to TN RSU planning?
- Use the move-between-states calculator with California and Tennessee selected, plus the gap calculator on each planned .
- Should I accelerate a vest before moving?
- Timing trades CA tax on an earlier against TN-only treatment later. Model both dates with your schedule — this is planning, not a one-size answer.
- Remote in Tennessee for a California employer — who taxes the vest?
- Tennessee resident with no CA work connection often owes no CA tax on post-move vests, but FTB sourcing rules are fact-specific. Keep work-location records.
When a CPA is worth it
- You continued working in California after claiming Tennessee residence.
- FTB notice or employer shows CA wages after your move date.
- Large unvested grants with acceleration on termination during the move year.
Sources and notes
Primary tax claims on this page are supported by the official and secondary sources below. Broker and software links describe reporting mechanics — confirm rules against IRS or state guidance.
CA sourcing on equity comp vs TN no wage income tax; move-date planning.
- FTB Publication 1004 — Equity-Based Compensation Guidelines
California Franchise Tax Board · Official
California sourcing for RSUs, stock options, and related equity pay for residents and nonresidents.
- Tennessee Department of Revenue — Individual Income Tax
Tennessee Department of Revenue · Official
Tennessee does not tax wage income; overview of individual tax rules.
- IRS Publication 525 — Taxable and Nontaxable Income
Internal Revenue Service · Official
Covers compensation income from stock-based pay, including restricted property under section 83.
Related calculators
- RSU Move Between States Calculator
Rough scenario tool for RSU tax when you change states — not a legal sourcing allocation, but a planning starting point.
- RSU Withholding Gap Calculator
Focus on the gap between what your employer withholds on RSU vests and what you may owe when everything is reconciled.
- California RSU Tax Estimator
California-focused RSU tax estimate — a planning view for CA residents before you reconcile on your return.
Related pages
- California to Texas RSU Tax Guide
Texas has no state income tax on wages, but your move date relative to vest dates still matters for CA.
- RSU Taxes After Leaving California
Leaving California does not always end state tax on all future income — timing and sourcing rules matter.
- Tennessee RSU Tax Guide
Tennessee has no state income tax on RSU vest wages for typical residents — federal and FICA still apply.
- How RSUs Are Taxed
RSUs are usually taxed as wages when they vest, not when the grant is signed. This guide walks through the timeline in plain terms.
For learning, not filing
VestingTax.com is not a CPA firm or tax preparer. Grants, employers, and states all differ. Use the cited IRS and state sources above, your own documents, and a qualified tax professional before you make decisions from this guide.