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Billionaires Depart California in Anticipation of New 5% Wealth Tax Proposal

As California’s proposed wealth tax looms, some of the nation’s most influential business leaders are making significant moves to exit the Golden State. The tax, which targets billionaires, has prompted a wave of strategic relocations.

Google co-founder Larry Page is one of the notable figures distancing himself from California. Recent public filings from the California Secretary of State’s office reveal that several business entities associated with Page were relocated out of the state in December. This move appears to be a proactive measure ahead of the January 1, 2026, residency deadline linked to the proposed tax. Notably, his family office, Koop LLC, and his influenza research fund, Flu Lab LLC, no longer list California as their primary location. Additionally, his flying-car venture, One Aero, has shifted its main address to Florida.

Similarly, Oracle founder Larry Ellison is signaling a potential retreat from California. Reports suggest he may have sold his San Francisco home for $45 million in an off-market deal, although major outlets have yet to confirm this transaction. If accurate, it would represent the largest real estate deal in the city for 2025.

ONCE PLANNED AS AMERICA’S MOST EXPENSIVE NEW HOME, $75M ESTATE LISTS BESIDE LARRY ELLISON’S FLORIDA MANSION

The proposed tax, which has yet to qualify for the November 2026 ballot, is backed by the Service Employees International Union–United Healthcare Workers West. It would impose a one-time 5% tax on the net worth of California residents exceeding $1 billion, due in 2027. Taxpayers would have the option to spread payments over five years, albeit with additional costs, as outlined by the Legislative Analyst’s Office.

Larry Page and Larry Ellison with California flag

Billionaires Larry Page (L) and Larry Ellison (R) are some of the latest to make strategic moves out of California ahead of a proposed wealth tax. (Getty Images)

The financial implications of this tax could be staggering. For instance, Ellison might be required to pay approximately $9.6 billion based on his estimated net worth of $192 billion, while Page could owe around $7.2 billion from his estimated $144 billion valuation. Importantly, the Legislative Analyst’s Office notes that real estate, pensions, and retirement accounts would be exempt from this tax.

If the measure passes, anyone who was a California resident as of January 1, 2026, would be liable for the tax. For example, a resident with a net worth of $20 billion would face a one-time tax of $1 billion, payable over five years.

Despite the exodus of some billionaires, not everyone is concerned about the proposed tax. Nvidia CEO Jensen Huang has expressed his commitment to staying in California, stating, “We chose to live in Silicon Valley and whatever taxes, I guess, they would like to apply, so be it. I’m perfectly fine with it. It never crossed my mind once.”

READ MORE FROM FOX BUSINESS

FOX Business’ Amanda Macias contributed to this report.

As California’s proposed wealth tax looms, some of the nation’s most influential business leaders are making significant moves to exit the Golden State. The tax, which targets billionaires, has prompted a wave of strategic relocations.

Google co-founder Larry Page is one of the notable figures distancing himself from California. Recent public filings from the California Secretary of State’s office reveal that several business entities associated with Page were relocated out of the state in December. This move appears to be a proactive measure ahead of the January 1, 2026, residency deadline linked to the proposed tax. Notably, his family office, Koop LLC, and his influenza research fund, Flu Lab LLC, no longer list California as their primary location. Additionally, his flying-car venture, One Aero, has shifted its main address to Florida.

Similarly, Oracle founder Larry Ellison is signaling a potential retreat from California. Reports suggest he may have sold his San Francisco home for $45 million in an off-market deal, although major outlets have yet to confirm this transaction. If accurate, it would represent the largest real estate deal in the city for 2025.

ONCE PLANNED AS AMERICA’S MOST EXPENSIVE NEW HOME, $75M ESTATE LISTS BESIDE LARRY ELLISON’S FLORIDA MANSION

The proposed tax, which has yet to qualify for the November 2026 ballot, is backed by the Service Employees International Union–United Healthcare Workers West. It would impose a one-time 5% tax on the net worth of California residents exceeding $1 billion, due in 2027. Taxpayers would have the option to spread payments over five years, albeit with additional costs, as outlined by the Legislative Analyst’s Office.

Larry Page and Larry Ellison with California flag

Billionaires Larry Page (L) and Larry Ellison (R) are some of the latest to make strategic moves out of California ahead of a proposed wealth tax. (Getty Images)

The financial implications of this tax could be staggering. For instance, Ellison might be required to pay approximately $9.6 billion based on his estimated net worth of $192 billion, while Page could owe around $7.2 billion from his estimated $144 billion valuation. Importantly, the Legislative Analyst’s Office notes that real estate, pensions, and retirement accounts would be exempt from this tax.

If the measure passes, anyone who was a California resident as of January 1, 2026, would be liable for the tax. For example, a resident with a net worth of $20 billion would face a one-time tax of $1 billion, payable over five years.

Despite the exodus of some billionaires, not everyone is concerned about the proposed tax. Nvidia CEO Jensen Huang has expressed his commitment to staying in California, stating, “We chose to live in Silicon Valley and whatever taxes, I guess, they would like to apply, so be it. I’m perfectly fine with it. It never crossed my mind once.”

READ MORE FROM FOX BUSINESS

FOX Business’ Amanda Macias contributed to this report.