In a surprising update, In-N-Out’s CEO, Lynsi Snyder, has relocated to Tennessee to establish a new office for the fast-food chain. This move mirrors Kentucky Fried Chicken’s recent shift to a more business-friendly environment. Snyder has indicated that operating in California presents numerous challenges, while Tennessee ranks as the 7th most favorable state for business, according to a Forbes survey.
Although taxes weren’t a primary focus in Snyder’s discussions, relocating to Tennessee could offer substantial financial advantages. Three significant tax benefits have emerged from this move.
(1) Corporate Income Tax
In 2025, California’s corporate income tax rate stands at 8.84%, according to the Tax Foundation. In contrast, Tennessee imposes a more manageable 6.5% rate. While individual locations in California will still incur local taxes, the corporate office could find financial relief through strategic adjustments. This means In-N-Out could save close to 2% in taxes at the business level by operating from Tennessee.
(2) Individual Income Tax
Lynsi Snyder is likely more concerned about individual income tax rates, which can be prohibitively high in California at 13.3%. With a net worth estimated at $7.3 billion, Snyder may earn tens of millions annually. By moving to Tennessee, where there is no state income tax, she stands to save millions in potential tax liabilities each year.
However, the tax advantages extend beyond Snyder’s income. Employees at the corporate office in Tennessee could also benefit from lower tax burdens due to the absence of state income tax, which could result in financial perks for many staff members.
(3) Investor-Level Tax
California and Tennessee have similar tax rates for investors, particularly concerning capital gains and dividends. Selling stock from In-N-Out could subject Snyder to considerable capital gains taxes, particularly if she’s still considered a California resident when selling. For instance, if she were to make a $10 million profit, her tax bill would be around $3.33 million in California. By selling while residing in Tennessee, however, she could potentially halve that tax obligation.
While Snyder hasn’t indicated any plans to sell her stake in In-N-Out—she owns 97% of the company—there’s always the consideration that such moves could be advantageous. If she were to issue dividends, the absence of dividend taxes in Tennessee would offer a significant financial relief compared to California’s 13.3% tax rate on dividends.
Despite the outlined tax benefits, there are important caveats. In-N-Out is privately held, meaning its financial dealings, such as revenue and executive compensation, aren’t publicly disclosed. Thus, it’s difficult to assess the full financial implications of the move.
Interestingly, Snyder’s situation is reminiscent of Jeff Bezos, who also moved to a no-income-tax state without initially expressing an intention to sell stocks. Bezos’s relocation to Florida resulted in significant savings on capital gains taxes during subsequent stock transactions.
Lastly, it’s worth noting that Snyder’s move may not be the most tax-effective strategy. While In-N-Out will still maintain its primary operations in California, a complete headquarters relocation to a state like Texas—where the corporate tax rate is 0%—could offer even greater savings. Still, it seems she’s banking on the benefits Tennessee provides, alongside opportunities for growth in the eastern U.S.
