Hi, I am thinking about moving from California, possibly leaving the country. My current income in California is accrued by providing individual loans and holding property as collateral. The interest earned from these loans is reported to the IRS with a 1099-int.

My question is, does 1099-int interest earned in California get taxed by California if I no longer live in California? As this money is not W2 earned income, I was told it is considered passive income and not subject to California Taxes?

Thank you.