The Amazon founder is sitting on some major savings by avoiding paying the staggering taxes he would owe if he still lived in Washington State.
A Well-Timed Move Saves Hundreds of Millions for Bezos
Amazon’s founder, Jeff Bezos, recently moved from Seattle, Washington, to Miami, Florida. With the cross-country move, he is gaining far more than some extra sunshine in Florida. The multi-billionaire will be saving an amount to the tune of 610 million dollars with his plans to sell off millions of shares of his stock.
While neither Washington nor Florida imposes state income taxes, Washington does have a 7% tax rule in place for capital gains above $250,000 – which includes the sale or exchange of stocks and bonds, among other tangible assets and investments.
Capital gains taxes are known to generate significant revenue for the states that impose them. According to the Washington State Standard, the state collected $890 million in 2023 alone. Though Democrats celebrate this tax, believing it is evidence of a fairer system for all, one very conservative think tank, known commonly as the Freedom Foundation, is hoping to have the tax overturned in due time.
In the meantime, the astonishingly wealthy Bezos stands to save over 600 hundred million dollars in taxes from his recently announced sales of Amazon stock planned for the following year. According to an illuminating report by CNBC, Jeff Bezos’ planned stock sale totaling over $2 billion worth of Amazon shares this year would have cost him more than $610 million in taxes if he was still a Washington resident. He avoids this extraordinary expense with his well-timed move to Florida.
Bezos Halted His Annual Stock Sales in Light of the New Capital Gains Tax Rule in Washington
Bezos has made it an annual ritual to sell off billions of dollars worth of Amazon shares since 1998. He uses these revenues to fund his philanthropic efforts, his Space Company – Blue Origin. More recently, he added to his growing list of assets with the purchase of a $500 million “mega-yacht,” as well as adding to his collection of mansions that he has purchased with Lauren Sanchez, his fiancé.
However, he chose to leave Washington State last year before the onset of the new capital gains tax. He halted his typical stock sales for 2022 and 2023 and instead gifted $200 million worth of shares at the end of 2023.
Post-move to Miami, he made up for lost time by 50 million shares, amounting to over $8.7 billion. The taxes on this would have been staggering had he still lived in Seattle.
Moving to Be Closer to Cherished Family or to Majorly Save On Taxes?
Jeff Bezos claims that his move was inspired by his desire to be closer to his family After spending several decades in Seattle, where he spent 30 years building Amazon into the behemoth it is today, he makes a move back to Miami, where he grew up. Bezos’ parents recently returned to the Sunshine State themselves, so he followed suit.
Another noteworthy reason for the shift was that Miami is significantly closer to Cape Canaveral, where operations for Blue Origin, Bezos’ space exploration company, are rapidly shifting. This move would allow him to be closer to the rocket launches. He also mentions that he and Lauren love Miami, though the tax breaks certainly seem to be the biggest motivation for the move.
The Perks of Living in Florida as One of the Richest People in the World
Jeff Bezos currently stands tall as the third-richest person in the entire world, according to Forbes, with an incredible net worth estimated at an astounding $194 billion. He is currently only outranked by Bernard Arnault of LMVH and Elon Musk of Tesla fame and fortune.
Florida’s tax laws are a major perk associated with living in the state, particularly for excessively wealthy individuals like Bezos. The absence of state income tax and the capital gains tax he would have faced in Washington was an enticing draw for Bezos.
These Florida tax laws will contribute immeasurably to Jeff Bezos’ tax savings amount. He stands to save approximately $610 million on the sale of 50 million Amazon shares alone, a sum that most people cannot even fathom. If his Amazon shares continue to rise in value over the course of the year, Bezos may save even more.
Florida is not the only state that does not impose a capital gains tax or state income tax, but proximity to Blue Origin and his family made Miami the ideal choice. By virtue of tax savings alone, other options for his move would have been Alaska, New Hampshire, Nevada, South Dakota, Tennessee, Texas, and Wyoming.
Putting His Tax Savings to Use on Plans for His Sprawling Miami Estate
Jeff Bezos certainly made himself feel at home with not one but two mansions in Miami’s uber-exclusive “Billionaire Bunker,” a private island in Indian Creek Village, Miami. He and his fiancé find themselves in the company of other high-profile residents on the guard-gated island, such as billionaire Carl Icahn, Tom Brady, Ivanka Trump, and singer-songwriter Julio Iglesias.
He purchased the first home over the summer for $68 million dollars. The sprawling 9,300-square-foot mansion was originally built in 1965 and was expanded in 1985, housing three massive bedrooms, three spacious bathrooms, and a gorgeous 2.8-acre lot.
Not satisfied with one massive home, Bezos and Sanchez decided to purchase the neighboring waterfront property for a whopping $79 million. The newer 19,000-square-foot, seven-bedroom estate was built in 2000 and rests on 4.6 acres of lovely water-facing land and boasts a home movie theater, a wine cellar, and a pool with its own cabana.
Bezos and his fiancé reportedly plan to bulldoze the property and build a new mega mansion in its wake. He will certainly be putting those tax savings to use with this planned build that is estimated to cost upwards of $200 million.
