Jeff Bezos may have saved around $1 billion in taxes this year after officially moving from Washington state to Florida’s exclusive Indian Creek Island, known as the “Billionaire Bunker.”
In 2024, Bezos sold $13.6 billion worth of Amazon stock, more than any other U.S. billionaire. If he had still been living in Washington, he would have owed roughly $954 million in state capital gains taxes, thanks to a 7% tax enacted in 2022 on long-term capital gains above $250,000.
But Florida doesn’t tax capital gains, income or estates. That change of residence reportedly helped Bezos keep a lot more of the profits from those stock sales.
From Sentimental to Strategic
Bezos shared the news of his move in a heartfelt Instagram video in late 2023, showing his dad filming him in Amazon’s early days.
He said he wanted to be closer to his parents, who had moved back to Miami.
He also pointed out that operations for his space company, Blue Origin, were shifting to Cape Canaveral.
However, he didn’t mention taxes. But behind the scenes, he was taking the legal steps needed to establish Florida residency: he bought three mansions for $234 million, registered to vote in the state, and filed a formal declaration of domicile.
“He set himself up in a way where Washington can’t say, ‘You’re still here, pay us some more money,'” tax attorney Edward Renn said, as reported by Forbes.
Big Stock Sales
Bezos began selling Amazon shares again in February 2024, right after the U.S. Supreme Court declined to hear a case challenging Washington’s capital gains tax. He sold $8.5 billion worth that month alone.
In March, he filed a trading plan with the SEC to sell another 25 million shares, about 3% of his total Amazon holdings. Those sales added $5.1 billion more in proceeds.
In total, 2024 became Bezos’ biggest year ever for selling Amazon shares. The move also helps him diversify his holdings.
About $210 billion of his $245 billion estimated fortune is still tied up in Amazon stock.
Some of that money likely went to fund his real estate spending, including $500 million on homes over the past five years, and a $500 million yacht named Koru.
He also continues to fund Blue Origin and has invested in over 125 startups, including AI firm Figure and chipmaker Tenstorrent.
Federal Taxes Still Apply
Bezos very likely still owes federal taxes on the $13.6 billion in stock sales.
At the top federal capital gains rate of 20%, plus a 3.8% net investment income tax, his bill would be around $3.2 billion, not counting any deductions or offsets.
He’s also been active in philanthropy. In the past year, Bezos has donated over $400 million and gifted $820 million worth of Amazon shares to nonprofit groups, according to public filings.
Could Washington Still Come After Him?
Washington state might still try to claim that Bezos owes taxes there, even though he went through the legal steps to change his residency.
Tax experts say the state could argue he hasn’t truly left, depending on things like whether he still sees doctors there or owns property.
Forbes reports Bezos still appears to own three homes in Washington, though there’s no record of recent sales.
Florida’s Wealth Boom
Bezos isn’t the only ultrawealthy American heading to Florida. Between 2003 and 2024, the number of Forbes 400 members living in Florida more than doubled, from 23 to 54.
Big names like hedge fund manager Ken Griffin, Paychex founder Tom Golisano, and investor Thomas Peterffy have all made the move.
Tax expert Brian Carter said that many wealthy clients already have deep connections to Florida before relocating.
“It’s not a decision people just make on a whim,” he said.
Playing the Long Game
The ultrawealthy often use long-term strategies to lower their tax bills. These include donating to charity, taking stock compensation instead of salary, and borrowing against assets instead of selling them.
According to ProPublica, Bezos paid no income tax in 2007 and 2011 and had an effective tax rate of less than 1% between 2014 and 2018.
Despite efforts to reduce taxes, billionaires like Bezos continue to seek influence in Washington.
His companies, Amazon and Blue Origin, both benefit from government contracts and favorable regulation.
So while the move to Florida may have been partly personal, it also resulted in major financial gains for one of the world’s richest people.
IMAGE CREDIT: “Jeff Bezos” by Daniel Oberhaus, via Flickr. Licensed under CC BY 4.0. Image adjusted for layout.