Research shows that teachers seek out jobs close to home, but previous studies have been unable to test whether proximity to home is related to retention in the teaching profession. We leverage a unique dataset from Teach For America (TFA) linking individuals' preferred teaching locations, actual teaching locations, and years in teaching for 7 years after entering the profession. By controlling for a detailed set of background, preference, and teaching assignment variables through a matched fixed effects design, we find that individuals who were assigned to a TFA region in their home state taught, on average, for 0.15 years longer than those who were not assigned to teach in their home state. This effect is strongest for teachers of color and those from a low-income background. Being assigned to teach in one's home state is associated with 0.36 more years in teaching for those from low-income backgrounds and 0.47 more years in teaching for teachers of color. Both sub-groups are approximately 8 percentage points more likely to stay in teaching for 7 or more years if assigned to their home state. Overall, this study provides evidence of a positive home state effect on teacher retention. Our results lend support for policies and programs that recruit from or nudge teachers toward teaching in their home states, particularly through alternative certification pathways, and as a means to increase teacher diversity.