Zuckerberg stays in California to dodge billionaire wealth tax
Meta's board tied Zuckerberg's share sales to staying in California to avoid a potential 5% one-time tax on billionaire wealth.
Mark Zuckerberg agreed this month to stay in California for eight years under a deal with Meta's board. The deal avoids exposure to Proposition 40 if voters approve it.
The tax would charge a one-time 5% levy on billionaire wealth held in the state as of January 2026. Zuckerberg had considered leaving after buying a Florida home in February.
His absence concerned Meta's board, who feared it could harm the company. Under the deal, Meta created a new class of shares with no voting power.
Zuckerberg can sell 20% of these shares for tax payments. He can sell the remaining 80% only if he stays in California over the next eight years.
Recent polling suggests Proposition 40 will fail to pass.
- 8 years
- California residency requirement
- 5 per cent one-time
- Proposition 40 wealth tax
- 20 per cent
- Shares Zuckerberg can sell immediately
- 1 dollar annually
- Zuckerberg's Meta salary
Why it mattersWhen billionaires can move to avoid taxes, it shifts the tax burden to ordinary workers and governments, affecting public services and inequality.
AustraliaNo direct Australian effect yet, but similar wealth-tax proposals are debated in Australia, and this deal shows how billionaires structure around such policies.
✓ Claims checked against the source. checked 2 h ago
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