The tax escape map: Billionaires are bolting for Florida from the West Coast

An exodus of billionaires from the West Coast to Florida is in progress as affluent individuals seek to evade hefty wealth taxes imposed by states like California and Washington.

Notable figures such as Google co-founders Larry Page, with a net worth of $244 billion, and Sergey Brin, valued at $226 billion, departed California last year in advance of the January 1 deadline for California's billionaire tax. Both individuals have acquired properties in Florida. Additionally, former Starbucks CEO Howard Schultz, worth $3.4 billion, and Meta CEO Mark Zuckerberg, holding a net worth of $198 billion, also purchased properties in the Sunshine State last month.

These tech leaders, along with Schultz, are joining a growing list that includes Amazon founder Jeff Bezos, PayPal and Palantir co-founder Peter Thiel, Citadel founder Ken Griffin, and Oracle co-founder Larry Ellison. All have either acquired property or relocated their companies’ operations to Florida in recent years.

The surge in property acquisitions in Florida has been partly driven by California's proposed Billionaire Tax Act, which, if enacted, would impose a one-time tax of 5% on the total net worth of billionaires residing in California after January 1, 2026. This legislation is projected to impact approximately 200 individuals and aims to generate $100 billion in revenue for healthcare, education, and food assistance programs. For the proposal to qualify for the November ballot, it requires 875,000 signatures from California residents by June. If it secures sufficient support, a simple majority in the November elections would facilitate its passage and constitutional amendment.

However, significant opposition from wealthy Californians has emerged against the tax. Notably, Brin donated $20 million to a political action committee advocating for three counter “spoiler” measures. Thiel also contributed $3 million to the California Business Roundtable, an organization opposing the billionaire tax.

Concerns remain regarding whether the proposed bill will achieve its projected revenue goal of $100 billion. With Page and Brin's departure from the state and other high-profile exits—including Uber co-founder Travis Kalanick's move to Texas—the tax may potentially fall short by a quarter of its estimated revenue. Calculations indicate that the tax obligations of Page and Brin could be around $25 billion.

Furthermore, California's billionaire tax is not the sole incentive driving billionaires to relocate. Washington's own wealth tax is another contributing factor. Bezos and Schultz exited Seattle prior to the enactment of a high-earners income tax, set at 9.9% for earnings exceeding $1 million, signed into law by Washington Governor Bob Ferguson.

Ken Griffin, the only former Chicago resident among these billionaires, relocated Citadel to Miami in June 2022, citing concerns regarding crime and political factors as influencing his decision. Since then, Griffin and Citadel have invested billions in Florida's real estate market.

Billionaires are particularly attracted to Florida due to the state’s favorable tax environment and appealing climate. Florida imposes no state income tax or capital gains tax, positioning Miami as a business-friendly alternative to the high-tax metropolitan areas of California and beyond. The affluent individuals who have made the move are in a position to purchase properties in the state’s exclusive neighborhoods and premium waterfront locations.

Billionaires are drawn to the Miami area

Both Jeff Bezos and Mark Zuckerberg have established residences on the prestigious Indian Creek Island, located near Miami Beach.

A visual representation highlights the locations of homes owned by billionaires Howard Schultz, Jeff Bezos, Larry Page, Mark Zuckerberg, Peter Thiel, and Sergey Brin in Miami.

Net worth data: Forbes

Markers correspond to size of net worth