Jeff Bezos of Amazon, AMZN, saved around $1 billion in taxes by moving to Florida

Financial analysts anticipated that Jeff Bezos’s relocation to Florida would yield substantial financial benefits—and they were spot on. So far, the Amazon founder has reaped extraordinary tax savings, estimated at $1 billion for 2024 alone.

Since moving early this year, Bezos has reportedly sold approximately $13.6 billion worth of Amazon stock, according to Forbes. Florida’s absence of both state income and capital gains taxes makes it an appealing destination for billionaires unloading assets, especially compared to Washington State, his previous residence. Washington recently implemented a 7% tax on long-term capital gains exceeding $250,000. If Bezos had still been a Washington resident when selling his shares, he would have faced an estimated $954 million state tax bill, per Forbes. However, he likely still owes around $3.2 billion in federal taxes, subject to deductions and credits.

Bezos announced his move from Seattle to Indian Creek, Florida, late last year in an Instagram post, describing it as both a personal and professional decision. He cited a desire to be closer to his parents in Miami and his aerospace company, Blue Origin, in Cape Canaveral. Although he didn’t explicitly highlight tax benefits, wealth managers predicted significant savings, noting Florida’s lack of state income and capital gains taxes as a major draw for the ultra-wealthy.

Washington State introduced its capital gains tax in 2022 to fund early learning programs, childcare, and other educational initiatives. The law, which recently survived repeal efforts, would have significantly impacted Bezos had he remained in the state.

Since settling in the Miami area, Bezos has spent nearly $250 million on three properties in Indian Creek Village, an exclusive enclave often referred to as the "billionaire bunker." Accessible only by a guarded bridge, the community is home to high-profile residents like Jared Kushner and Ivanka Trump, Carl Icahn, and Tom Brady. Bezos resides there with his fiancée, Lauren Sánchez.

Florida offers another tax perk for the ultra-rich: the absence of an estate tax. This could save Bezos’s heirs billions in the future.

“For someone with that much wealth, the estate tax savings alone could amount to $10 billion—never mind the ongoing income tax savings,” John Pantekidis, managing partner and general counsel at TwinFocus, which manages over $7 billion for ultrahigh-net-worth families, told Fortune earlier this year. “Florida is incredibly advantageous for someone like Jeff Bezos. They’ve created a financial environment that’s ideal—almost like nirvana—for wealthy individuals.”