2026-10-26 · 4 min read · Orange County
What Should I Update When I Move Out of California?
The short answer
What should you update when you move out of California from Orange County? Start with your home: tell the Orange County Assessor if you no longer qualify for the Homeowners' Exemption, and plan for California's real estate withholding when you sell. Then update your address with the post office and the IRS, plan for a part-year California tax return, and check your insurance if the home will sit empty. A short written checklist keeps your family from missing a step during a busy move.
Why Does a Checklist Matter When We Leave California?
Moving out of state is a big life transition. There's the sale, the packing, the goodbyes and a new home to set up, all at once. Small items, like an address change or a tax form, are easy to lose in the middle of it.
I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. When a family is moving away, I like to build the plan and timeline together, so the sale and the move support each other.
This article is general information, not tax or legal advice. Please talk with a CPA and, if needed, an estate planning attorney about your own situation.
What Do I Need to Tell the Orange County Assessor?
If you receive the Homeowners' Exemption, the Orange County Assessor says you are responsible for letting it know when you sell or move out and no longer qualify. The exemption takes $7,000 off the assessed value of an owner-occupied main home.
The Assessor asks for a termination notice by December 10 to end the exemption without penalty. If you keep the Orange County home and rent it out or leave it empty, it's no longer your main residence, so this step matters even more.
Will California Withhold Tax When I Sell?
It may. The Franchise Tax Board (FTB) Form 593 instructions explain that California generally requires withholding of 3 1/3% of the sales price on the sale of California real property, unless the seller certifies an exemption or elects an alternative calculation based on the gain.
One of the exemptions is for a home that qualifies as your principal residence under federal rules. The FTB explains that generally means you owned and lived in the home as your main home for at least two of the five years before the sale. Form 593 needs to reach escrow before closing. After closing, the FTB says withheld amounts can only be recovered as a credit on your tax return.
Ask your CPA early which box on Form 593 fits you, so escrow has it in time.
What About My California Income Tax Return?
The FTB explains that people who move into or out of California during the year generally file Form 540NR as part-year residents. Part-year residents pay California tax on all income received while a resident, plus California-source income received while a nonresident.
If you keep working for a California employer after you move, the FTB notes you may still need to file a California return for the California-source part of your pay. A CPA can help you set the move date and sort out which income belongs to which state.
Who Else Needs My New Address?
- The post office. Submit a change of address through the official USPS change-of-address site so your mail follows you.
- The IRS. The IRS says you can use Form 8822, use your new address when you file, send a signed written statement or tell it by phone or in person.
- Banks, retirement accounts and credit cards. Statements and tax forms need to reach you.
- Your insurance companies. Auto, home, life and any long-term care policies.
- Escrow. Give your escrow officer your forwarding address so final documents and your closing statement find you.
When sale proceeds are sent to you, confirm the wiring instructions by phone with escrow at a number you already know. My article on protecting your money from wire fraud explains why.
What if the House Will Sit Empty for a While?
Many families move first and sell after. If so, call your insurance agent before you leave. The California Department of Insurance lists losses to a house vacant for 60 days or more among the items homeowners policies often don't cover. Ask whether you need a vacancy endorsement or a different policy, and get the answer in writing.
Also plan who will check on the home, keep the yard tidy and handle showings while you're away.
Let's Start With a Conversation
If your family is planning a move out of California, I'd love to have a private planning conversation with you about timing the sale and the move. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. You can also read about downsizing. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.
Frequently asked questions
Does my Homeowners' Exemption end automatically when I sell?
Don't count on it. The Orange County Assessor says owners are responsible for notifying it when they no longer qualify, and asks for notice by December 10 to avoid a penalty.
Do I have to file a California tax return the year I move?
In many cases, yes. The FTB says people who move out of California during the year generally file Form 540NR as part-year residents.
Will California keep part of my sale money?
It might withhold 3 1/3% of the sales price at closing unless you qualify for an exemption, such as the principal residence exemption, or use the alternative calculation. Your CPA can help you complete Form 593.
Should we sell before or after we move?
Either can work. Selling first gives you a clear budget. Moving first can make packing easier, though the home may sit vacant, so check your insurance.