How Jeff Bezos Saved Nearly $1 Billion in Taxes by Relocating to Miami
From Seattle to “Billionaire Bunker”
In late 2023, Amazon founder Jeff Bezos announced his move from Seattle, where he spent nearly 30 years, to Miami, Florida. He cited personal reasons: “to be closer to my parents and Blue Origin’s operations at Cape Canaveral” (Business Insider). What he didn’t mention publicly, but that analysts quickly highlighted, was the significant tax advantage he gained by relocating.
Washington vs. Florida: A Tale of Two States
Washington State introduced a 7% capital gains tax in 2022 on long-term asset sales over $250,000 (Washington Examiner). Florida, on the other hand, has no state income tax and no capital gains tax.
This shift in tax environment turned out to be incredibly advantageous for Bezos, who has been executing a pre-scheduled “10b5‑1” trading plan to sell Amazon shares, about $8.6 billion worth by January 2025 (Investopedia, Business Insider).
The Big Picture: $600 Million to Nearly $1 Billion Saved
First round: By moving before selling the initial $2 billion tranche of stock, Bezos saved at least $140 million in state taxes (The Guardian).
Full plan: With all stock sales considered, analysts estimate Bezos has avoided $600 million to nearly $1 billion in Washington state capital gains taxes (GeekWire).
One report by TipRanks put the figure at $1 billion in tax savings (TipRanks), while The Center Square pegged initial savings at about $938 million (Everett Post).
Why It Matters
Bezos’s move exemplifies how tax policy influences the behavior of high-net-worth individuals:
Washington’s capital gains law raised nearly $890 million in its first year, but lost out on $600 million–$1 billion when Bezos left (GeekWire).
Some state officials responded quickly, Initiative 2109 seeks to repeal the state’s capital gains tax in the upcoming November ballot (Washington Examiner).
Beyond Taxes: Miami’s Attractiveness
Bezos didn’t just save on taxes—he’s immersed himself in Miami’s ultra-luxury scene:
Purchased multiple mansions on Indian Creek Island, dubbed the “Billionaire Bunker” (The Guardian).
Amazon is scouting 50,000 sq ft of office space in Brickell, hinting at strategic expansion in Florida (axios.com).
Broader Trend: The High-Wealth Migration
Bezos’s relocation is part of a larger movement:
Other ultra-rich individuals, Ken Griffin, Carl Icahn, Josh Harris, among others, have similarly shifted to Florida.
High earners ($200k+) are relocating to Florida at abnormally high rates, drawn by both lifestyle and tax advantages (Investopedia).
Takeaways
Tax policy shapes migration: Billionaires like Bezos can save hundreds of millions, or more, by choosing tax-favorable states.
State revenue vs. capital flight: Washington’s effort to tax capital gains may backfire if large taxpayers leave.
Miami isn’t just sunny, it’s strategic: For the ultra-wealthy, Florida is now a tax haven and a business hub.
Wondering how this trend might affect real estate, municipal budgets, or broader tax policy? I’d be happy to explore more!
