Selling Your House and Leaving California: Step-by-Step Guide
What are the steps for selling your house and leaving California from Simi Valley or the West Valley? Selling your house and leaving California comes down to eight steps: pick where and when you're going, get a real value and your walk-away number, check the tax on your gain, sort out California's Form 593 withholding before escrow closes, decide whether to sell or buy first, prepare and list, close, and then file California's part-year return. Do the tax and timing steps first, because they're the hardest to fix after you've signed.
Updated November 2026. By Steve Hise and Tricia Garcia, Real Estate Toolbox at eXp Realty, Simi Valley (DRE #01702055 / #02032007). This is the order we follow with sellers in Simi Valley, Moorpark, Thousand Oaks and the San Fernando Valley.
Free guide: Leaving California, the Seller’s Game Plan. The tax questions to answer first, a worksheet for your walk-away number, three ways to time your sale with your move, and a 90-day checklist.
The steps at a glance
| Step | When |
|---|---|
| 1. Pick your destination and timing | First |
| 2. Get a value and your walk-away number | Before you shop for the next home |
| 3. Check the tax on your gain | Before you set a sale date |
| 4. Handle Form 593 | Before escrow closes |
| 5. Sell first or buy first | Before listing |
| 6-7. Prepare, list and close | Listing month through closing |
| 8. File Form 540NR | Next tax season |
Steps 1 and 2: Pick your destination, then find your walk-away number
Where you're going and when drives everything else: whether you need your equity for the next down payment, and how long a gap you can live with. We've written a page for the moves we see most from Simi Valley: Las Vegas, Phoenix, Dallas, Boise, Nashville, Florida, Portland, San Diego and Bakersfield.
Your walk-away number is the sale price minus your loan payoff, commission, escrow and title fees, repairs or credits, and transfer tax. Ventura County's documentary transfer tax is $0.55 for each $500 of value, per the Clerk-Recorder's fee schedule effective July 1, 2026. In the San Fernando Valley, Los Angeles County and, inside city limits, the City of Los Angeles set their own transfer taxes, so ask escrow for the exact figure. Our Leaving California calculator runs the math in a few minutes.
Step 3: Check the tax on your gain before you set a date
The Franchise Tax Board says California follows the IRS rules for selling a main home. If you owned it and lived in it as your primary residence for at least 2 of the 5 years before the sale, you can generally exclude up to $250,000 of gain, or up to $500,000 for married or RDP couples filing jointly. This is the Section 121 exclusion. Gain above that is taxable.
- Your gain isn't just sale price minus purchase price. IRS Publication 523 subtracts selling expenses, such as commissions, then your adjusted basis. Improvements like a new roof, an added bathroom, a pool or a new furnace add to basis. Repairs don't. Pull your receipts now.
- You may qualify for a partial exclusion. If you miss the 2-of-5 test, Pub 523 lists events that can still qualify you for part of it, including a work-related or health-related move.
Long-time owners can have gain above the limit. Talk with a CPA before you list, not after you're in escrow. If you've already left, read how California taxes your home sale after you move out of state.
Step 4: Handle Form 593 before escrow closes
Under the FTB's 2026 Form 593 instructions, escrow generally withholds 3 1/3% of the sales price for California unless an exemption applies. A seller can instead elect an alternative calculation on the estimated gain, using the 12.3% rate for individuals.
For most people selling the home they live in, no withholding is required: the home qualifies as a principal residence under Section 121, or was last used as one. If you've moved out and rented it, that last-use exemption generally doesn't apply. Give Form 593 to escrow before closing, because afterward withheld money only comes back as a credit on your California return. Our Form 593 guide walks through each line.
Step 5: Decide whether to sell first or buy first
Selling first frees your equity and strengthens your next offer, but you need a place to land in between. Buying first lets you move once, but your lender may count both house payments. A short rent-back or a same-day close can bridge the gap. Compare the options in sell first or buy first when you're moving out of state.
If you're weighing a move within California instead: the Board of Equalization says Proposition 19 lets an eligible homeowner transfer a base year value to a replacement home anywhere in California, generally bought within two years of the sale. Eligibility rules apply, and it doesn't carry to another state. See our Prop 19 guide.
Steps 6 and 7: Prepare, list and close
Selling from a distance is easier when the prep is done before you leave. Make a short repair list, gather permits and receipts (the same ones Step 3 needs), and start your disclosures early. Price from recent comparable sales, not an online estimate.
Once you accept an offer, escrow runs through inspections, appraisal and loan approval, then contingency removal and signing. If you'll already be gone, ask escrow early about remote signing or a mobile notary in your new state. See escrow, week by week and the cost to sell a house in Simi Valley.
Step 8: After you move, close out California
The year you move, you'll likely be a part-year resident. The FTB says part-year residents pay California tax on all income received while a resident, plus California-source income while a nonresident, and the sale of California real property is California-source income. Part-year residents and nonresidents file Form 540NR, where you also claim any tax withheld at closing.
California looks at where your closest connections are. FTB Publication 1031 lists factors such as your principal residence, the state that issued your driver's license, where your vehicles are registered, where you're registered to vote and where you bank. No single factor decides it, so move them together and keep records of the date you left.
Frequently asked questions
Do I pay California tax on my home sale if I move out of state?
Possibly. The FTB treats the sale of California real property as California-source income, even for nonresidents. If the home was your main residence for 2 of the last 5 years, you can generally exclude up to $250,000 of gain, or $500,000 for married or RDP couples filing jointly.
Will escrow hold back money for California taxes?
Generally 3 1/3% of the sales price under Form 593, unless an exemption applies. Selling the home you live in, or one last used as your principal residence, is usually exempt.
Can I take my Prop 19 tax base to another state?
No. The Board of Equalization says the Prop 19 base year value transfer goes to a replacement home anywhere in California, not in another state.
Can I sell my Simi Valley home after I've already moved?
Yes. Renting it out first can affect both the Section 121 exclusion and the Form 593 exemption, so talk with a CPA before you sign a lease.
Planning to leave? Let's map your steps together
We have about 20 years of combined experience and have helped hundreds of families sell and move. We plan both moves together so you're not stuck in between. For the bigger picture, read our guide to leaving California and selling your Simi Valley home and leaving California from Ventura County. When you're ready, start here to schedule a call, call or text 805-424-6226, or see what your Simi Valley home is worth.
Sources
- Franchise Tax Board, Income from the sale of your home (viewed November 11, 2026).
- Franchise Tax Board, Part-year resident and nonresident (viewed November 11, 2026).
- Franchise Tax Board, 2026 Instructions for Form 593 (viewed November 11, 2026).
- Franchise Tax Board, Publication 1031 (2025) (viewed November 11, 2026).
- IRS Publication 523 (2025), Selling Your Home (viewed November 11, 2026).
- California State Board of Equalization, Proposition 19 (viewed November 11, 2026).
- Ventura County Clerk-Recorder, Fee Schedule effective July 1, 2026 (viewed November 11, 2026).
Steve Hise and Tricia Garcia, Real Estate Toolbox at eXp Realty, 1720 E Los Angeles Ave, Suite F, Simi Valley, CA 93065
Steve Hise CA DRE #01702055 | Tricia Garcia CA DRE #02032007
This article is general information, not legal or tax advice. Tax rules depend on your dates, ownership and situation, so talk with a CPA before you set your sale date.
