Miami, Florida – Jeff Bezos, the founder of Amazon, saved millions of dollars in state taxes by selling $2 billion worth of stock in Florida, a state with no income or capital gains tax.
Bezos made the decision to move from Seattle to Miami in 2022, citing reasons such as being closer to his parents and the launch site for his space company, Blue Origin. However, many speculate that the move was also influenced by taxes, as Washington state imposed a 7% capital gains tax on sales of stocks or bonds over $250,000 in 2022. This marked the first time Bezos would have to pay state taxes on his stock sales.
The billionaire, who has been consistently selling billions of dollars worth of Amazon shares for over two decades for philanthropy, Blue Origin, and personal expenses, stopped selling in 2022 when the tax took effect. However, after his move to Florida, a filing with the Securities and Exchange Commission revealed that Bezos launched a plan to sell 50 million shares before Jan. 31, 2025.
With no state income or capital gains tax, Bezos saved $140 million on his $2 billion stock sale in Florida. Over the next year, it is estimated that he will save at least $610 million on the entire sale of 50 million shares, assuming the value of Amazon shares remains stable. Additionally, it is expected that the value of his shares will continue to rise, increasing his tax savings even further.
Using his tax savings from the move to Florida, Bezos has reportedly purchased a $147 million worth of mansions in Indian Creek and is looking at acquiring three other properties on the island. He is also said to be planning to tear down the homes and build a new one, with the total costs of the new estate likely to exceed $200 million. This steep investment demonstrates the significant impact of tax policies on the location choices and financial decisions of the ultra-wealthy.