Californians like to complain about high taxes, and who can blame them? California may have more millionaires and billionaires, but the tax cost of living in the Golden State has always been high. The current top 13.3% rate—which is the same on ordinary income and capital gain—dates from 2012. But with the 2018 federal tax law changes, paying 13.3% in non-deductible state taxes (after a $10,000 cap) is even more painful. The tax law is causing an exodus of high-tax state residents to no tax or lower tax states. Lower tax means just about everywhere.