Larry Page Relocates to Miami as Part of California Wealth Tax Strategy

Google co-founder Larry Page has relocated from California to Florida, purchasing two properties in Miami for a combined $173.4 million. This move follows the restructuring of his family office and related entities out of California and into Delaware and Florida, in anticipation of a proposed one-time 5% wealth tax on residents with assets exceeding $1 billion.

The tax, which is scheduled for a November vote, would retroactively apply to residents in California as of January 1, 2026. To avoid the potential tax burden, Page has also incorporated several business ventures in Delaware and Florida, including entities related to influenza research and his flying car projects.

Page's relocation is part of a broader trend among high-net-worth individuals in California. At least six billionaires, including Page and Peter Thiel, have reportedly cut ties with the state before the proposed tax's residency cutoff date. Others, including Sergey Brin, are reportedly in negotiations to purchase homes in Miami.

Why Did This Happen?

California's proposed wealth tax aims to address a projected budget shortfall, particularly in funding for healthcare programs like Medi-Cal. The measure, which has strong support from labor groups, is intended to raise tens of billions of dollars for public services. However, critics argue that the tax will drive away the state's wealthiest residents, reducing the tax base and forcing the state to rely on broader tax hikes or increased borrowing.

Page's move comes as a growing number of tech leaders have expressed concerns over the tax. Chamath Palihapitiya, a venture capitalist and former Facebook executive, has warned that the tax could deepen California's budget deficit by pushing billionaires out of the state. Others, including Elon Musk and Peter Thiel, have already taken steps to relocate their businesses and personal residences to states with more favorable tax environments.

How Did Markets React?

The market has shown a clear response to the uncertainty around the proposed wealth tax. Several high-profile tech moguls have accelerated their relocations to states like Texas and Florida. This has had a noticeable impact on real estate markets in those states, with agents reporting increased demand from California-based clients.

Miami, in particular, has become a hub for wealthy tech entrepreneurs seeking to avoid California's tax environment. Real estate agents in the city have reported a surge in inquiries from Bay Area residents. The influx of capital has led to increased competition in the luxury housing market, with some agents signing non-disclosure agreements to maintain confidentiality around high-profile transactions.

What Are Analysts Watching Next?

Analysts are closely monitoring the outcome of the proposed wealth tax, which is still several months away from a vote. If approved, the tax will take effect retroactively for residents who were in California as of January 1, 2026. The number of billionaires leaving the state in the meantime will be a key indicator of the policy's potential impact.

Some analysts warn that the exodus could have broader implications for California's economy. The state has historically relied on its high-net-worth residents to fund public services. If those residents continue to leave, it could force the state to seek alternative revenue sources, including higher taxes on the middle class or increased borrowing.

The outcome of the ballot measure will also influence other states considering similar tax policies. States like Massachusetts and Washington, which have existing wealth taxes, have not seen significant exits from the ultra-wealthy. However, California's unique regulatory and tax environment may make it a more challenging case for such policies.