California's Billionaire Tax Sparks Exodus of Wealthy Residents Before 2026
California's proposed 2026 Billionaire Tax Act has prompted a wave of high-profile departures. The one-time levy, targeting assets over $1 billion, is pushing wealthy residents to relocate. Former Uber CEO Travis Kalanick is among those moving, shifting his primary residence to Texas in late 2025 to avoid the tax.
The Billionaire Tax Act, set to take effect on January 1, 2026, would impose a 5% tax on assets exceeding $1 billion. This includes stocks, art, and intellectual property owned by California residents. Critics argue the measure could drive wealthy individuals and businesses out of the state.
Kalanick, whose net worth is estimated at $3.6 billion, officially changed his residence to Lake Austin, Texas, on December 16, 2025. The move ensures he avoids the tax, as he now spends every weekend in his new home. His relocation follows a broader trend, with figures like Elon Musk and Chevron CEO Mike Wirth also leaving California in recent years. Other tech leaders have taken pre-emptive action. Google co-founder Larry Page shifted his businesses out of California ahead of the tax's implementation. Meanwhile, LinkedIn co-founder Reid Hoffman publicly criticised the bill, calling its design flawed. Opponents warn that more billionaires may follow, either by selling companies or moving entirely to avoid the levy. Between 2018 and 2024, Texas saw 561 company relocations from California, though exact numbers of billionaires moving remain unclear. Kalanick's departure stands as one of the most high-profile examples of this ongoing shift.
The tax is now set to apply only to those residing in California from January 1, 2026. Kalanick's move to Texas, along with others like Page and Musk, highlights the potential impact on the state's economy. The long-term effects on California's tax base and business landscape remain to be seen.
