By Keerthi Ramesh
A growing number of ultra-wealthy individuals are making rapid moves out of California as movement picks up speed behind a proposed one-time wealth tax targeting the state’s richest residents, luxury real estate agents and industry, observers have told Fox News.
In recent weeks, several billionaires have bought or leased property in South Florida, many closing deals within days of deciding to leave California, according to Julian Johnston, a Miami-based luxury real estate broker. Johnston, who works with high-net-worth clients, said multiple buyers a few tech founders and finance leaders among them, completed transactions in Miami within seven days of their first visits.
“Once a few of them pulled the trigger, the rest followed,” Johnston said, describing a “tipping point” among an interconnected circle of wealthy Californians who socialize and invest together.
READ: ‘Exodus of billionaires’: Silicon Valley titans pushes back against proposed wealth tax (January 14, 2026)
The potential tax, known as the 2026 Billionaire Tax Act, would impose a one-time 5 per cent charge on individuals and trusts holding more than $1 billion in assets, with payments spreading over up to five years. It would apply to residents as of January 1, 2026, and is backed by labour unions and healthcare advocates seeking revenue to support state programs amid federal funding cuts.
For some of the ultra-wealthy, the potential bite from the levy is substantial. “One client said, ‘You know, this could be like a $5 billion tax for me,’” Johnston said.
Among the highest-profile figures reportedly repositioning themselves outside California is Google co-founder Larry Page, who spent more than $170 million on luxury homes in Miami’s Coconut Grove late last year, according to industry reports. Page has also shifted certain business entities out of the state amid concerns that remaining a California resident could trigger the new tax.
Florida’s lack of a state income tax and strong network of venture capital and tech professionals are part of the appeal for relocating billionaires, agents say. But beyond tax savings, many cite lifestyle similarities to California and an expanding local economy as factors in their decisions.
California Gov. Gavin Newsom, a Democrat, has publicly opposed the wealth tax, arguing it could damage the state’s economy and prompt a loss of investment capital. Critics of the initiative, including some business leaders and economists, say the measure could accelerate relocations of people and companies at a time when other states are courting wealth and talent.
READ: California wealth tax could ‘kill entrepreneurship’: Silicon Valley billionaires like Larry Page, Jensen Huang make their moves (January 8, 2026)
Supporters of the tax counter that it would only affect a tiny fraction of the population and help restore funding for healthcare and education that they say has been eroded by federal budget changes. They also point out that historically, relocations by billionaires have been uncommon despite tax changes in different parts of the country.
Sociologists who study wealth and migration say that while the ultra-rich have the means to move, many stay rooted close to their business networks and social circles, which can complicate decisions to change state residency. Still, they acknowledge that any significant shift of capital and talent could have long-term implications for states competing for economic influence. As signature gathering continues and the ballot initiative progresses, the tension between tax policy and economic mobility is likely to intensify, with California’s future as a global innovation hub now part of a broader national conversation.