General Discussion

Or may California, to be honest.

If In-N-Out has HQ in California, then it must pay income tax on out-of-state revenue equal to what California would charge in-state corporations. That's weirdly worded on purpose. If TN charges 5% income tax (no clue what they charge) and California charges 10%, with different things deductible, then they pay taxes in TN per TX law. Then, in California, they have to report what they paid, reconcile deductions with California law, and pay what they'd have to pay in California if all their revenue was in-state. California is a notoriously high-tax, esp. high-corporate tax, state--certainly not currently the highest in the US, but higher than most. Currently it's 8.84%. TN's is 6.5%.


California has a new corporate tax law that takes effect starting in 2026, payable in 2027, and that tax rate is set to increase--to help small businesses but also increase state revenue. "Its new Franklin, Tennessee headquarters is set to open in 2026." Moving the headquarters will give at least a 2.84% tax break on out-of-California revenue. If In-N-Out projects more revenue from outside of California, more will fall under that rubric.

Note that she's not moving the HQ to a 0% corporate tax state.