How Did Jeff Bezos Save $1 Billion by Moving to Florida?

Jeff Bezos, the Amazon founder and second-richest person alive, just made a tax-savvy move that’s catching attention in financial circles. The former Seattle resident is now living it up in sunny Florida, where a tax-free lifestyle just saved him a cool $1 billion in state taxes. Let’s break it down for all your number crunchers and tax wizards out there.

Florida Sunshine Beats Washington’s Tax Rainstorm

When Bezos said goodbye to Washington State in late 2023 and hello to Florida, he didn’t just trade rain for sunshine. He traded a hefty tax bill for, well, nothing. Washington recently imposed a 7% tax on long-term capital gains over $250,000, and Bezos’ stock sales in 2024 would’ve cost him nearly $954 million. Instead, Florida—a state with zero income or capital gains taxes—let him keep that cash where it belongs: in his pocket.

Since moving, Bezos has sold about $13.6 billion worth of Amazon stock, according to Forbes. That’s the kind of cha-ching that’ll make any tax pro’s head spin. If you’re wondering what Washington’s loss looks like, here’s a clue: the state’s entire capital gains tax collection last fiscal year was $848 million. Bezos’ bill alone would have covered more than all of it. Ouch.

Florida’s ‘Billionaire Bunker’

Bezos didn’t just land anywhere in Florida; he parked himself in Indian Creek Village—a gated island nicknamed the “Billionaire Bunker.” Imagine a place where the neighbors include Tom Brady, Ivanka Trump, and Carl Icahn. That’s where Bezos dropped nearly $250 million on three mansions, including a 19,000-square-foot waterfront stunner. Talk about leveling up.

While his Instagram post announcing the move talked about family and his space company Blue Origin, it’s no secret the tax perks sweetened the deal. Florida doesn’t just skip income and capital gains taxes; it also skips estate taxes. For someone worth $250 billion, that could mean an extra $10 billion saved for his heirs. Yep, you read that right—$10 billion. As one tax expert put it, Florida is pretty much a “paradise” for billionaires.

Why Washington’s Tax Push

Washington’s 7% capital gains tax kicked in just two years ago to fund education and childcare programs. While it survived repeal efforts, it might have done more harm than good when it comes to keeping billionaires around. Bezos’ move shows how quickly tax policies can push high earners to seek greener (or sunnier) pastures. Let’s do some quick math: Bezos’ $954 million tax savings could’ve covered Washington’s education programs for years. But instead of collecting that cash, the state got a front-row seat to one of the wealthiest people alive packing his bags. A tough pill to swallow for policymakers banking on billionaires sticking around.

Stock Sales and Yachts

If you’re wondering why Bezos is selling so much stock, the answer’s simple: diversification. While he still owns about 10% of Amazon, unloading $13.6 billion worth of shares lets him spread his wealth across other investments. It’s not like he’s hurting for cash, either. Bezos’ portfolio includes everything from Blue Origin to a half-billion-dollar yacht. Oh, and let’s not forget the $500 million he’s spent on mansions in recent years. But don’t think he’s off the hook completely. The federal government’s still coming for its cut. Based on a 23.8% combined capital gains and net investment tax, Bezos likely owes $3.2 billion to Uncle Sam. And that’s before any deductions from charitable giving or tax strategies his team has cooked up.

Money Moves for Finance Pros

Jeff Bezos’ move is a textbook case of how tax policy can steer financial decisions. For accounting, tax, and finance professionals, this is a wake-up call. Whether it’s advising on residency changes, estate planning, or managing capital gains, understanding the tax dynamics of different states is key. The takeaway? In today’s world, where the ultra-wealthy can move faster than a Blue Origin rocket, knowing the numbers can save billions. And for the rest of us? Well, at least we get to watch from the sidelines as Bezos’ mansion collection grows. Stay ahead in accounting, tax, and finance—subscribe to MYCPE ONE Insights for the latest updates and industry news delivered straight to your inbox.