Last year, Jeff Bezos made headlines when he announced on Instagram that he was leaving Seattle, his home for nearly 30 years, to move to Miami. While he cited reasons such as being closer to his parents and his rocket launches at Blue Origin, it’s hard to ignore the significant tax benefits that come with the move.
In 2022, Washington state imposed a new capital gains tax of 7% on sales of stocks or bonds exceeding $250,000. This marked the first time Bezos would face state taxes on his stock sales, as Washington state does not have a personal income tax. To take advantage of Florida’s tax laws, Bezos plans to sell 50 million shares of Amazon before January 31, 2025.
The absence of state income tax and capital gains tax in Florida means that Bezos will save at least $610 million on these sales alone. And this is just the beginning. Last week, Bezos sold $2 billion worth of Amazon stock, saving an additional $140 million in taxes that he would have paid to Washington state.
With the potential for Amazon shares to continue rising, the value of Bezos’ shares and his tax savings could be even higher. In fact, his tax savings from moving to Miami have already covered the cost of his luxurious 417-foot yacht, Koru.
Bezos has wasted no time in making Miami his new home. He has purchased two mansions in Indian Creek for $147 million and is reportedly looking at three other properties on the island. Miami brokers speculate that Bezos will tear down the existing homes and build a new estate, with the total costs likely exceeding $200 million.
In conclusion, Jeff Bezos’ move to Miami not only brings him closer to his family and rocket launches but also provides him with substantial tax savings. By selling his Amazon shares in Florida, Bezos stands to save over $600 million in taxes, further solidifying his position as one of the wealthiest individuals in the world.
