Two of America’s most prominent billionaires are preparing to sever long-standing ties with California before the new year, a move that has reignited debate over taxation, wealth migration, and the future of Silicon Valley as a global hub for the ultra-rich.
Tech investor Peter Thiel and Google co-founder Larry Page are reportedly making plans to leave California ahead of the possible introduction of a new state tax targeting individuals with extremely high net worth. The proposed measure would impose an additional tax on residents whose total assets exceed $1 billion, a policy that has caused concern among some of the state’s wealthiest residents.
California has long been considered one of the most attractive places in the world for technology leaders, entrepreneurs, and celebrities. Silicon Valley, in particular, has been home to founders of major tech companies, venture capitalists, and Hollywood figures. However, rising living costs, regulatory pressures, and now the prospect of a new wealth tax have led some high-profile individuals to reconsider their residency.
According to reports, both Thiel and Page have maintained residences in California for many years, including luxury properties in the Hollywood Hills. Thiel also operates a private investment firm in Los Angeles. Despite their deep connections to the state, both billionaires are said to be preparing to relocate to other parts of the United States.
Corporate filings indicate that several companies linked to Larry Page have recently submitted documents to municipal authorities in Florida, suggesting a possible shift in business and residential ties away from California. Florida, along with Texas, has increasingly attracted wealthy individuals due to its lower tax burden and business-friendly environment.
The potential trigger for this movement is a proposed California wealth tax that would apply to individuals with net assets exceeding $1 billion. If approved, the measure would come into effect on January 1, 2026. Under the proposal, qualifying individuals would be required to pay an annual tax of five percent of their total net worth.
For billionaires at the top of the global wealth rankings, the financial impact could be substantial. Larry Page’s estimated net worth stands at more than $250 billion, which could translate into a tax bill exceeding $12 billion under the proposed framework. Peter Thiel, whose net worth is estimated at around $27 billion, could face a tax obligation of more than $1 billion annually.
The proposal was first introduced by California lawmakers in late 2026 and is still in the early stages of the legislative process. It requires additional approvals and signatures before it can become law. However, the possibility of its adoption has already prompted reactions from business leaders and investors.
Legal experts note that residency status plays a crucial role in determining tax liability. As a result, some wealthy individuals may seek to establish residency in other states before the new rules take effect. Reports suggest that those considering a move face tight deadlines to formally change their residency status before the end of the year.
The prospect of billionaires leaving California has sparked political discussion within the state. Democratic Congressman Ro Khanna, who represents parts of Silicon Valley, responded cautiously when asked about the potential departures, making light remarks while acknowledging the broader issue. California Governor Gavin Newsom has expressed concern that such a tax could accelerate an outflow of wealthy residents to states with lower taxes.
Supporters of the proposal argue that the wealth tax could generate significant revenue for public services and reduce economic inequality. Critics counter that it risks driving investment and talent away from California, potentially weakening its position as a global technology and innovation center.
California has previously faced similar debates over taxation and business migration, but Silicon Valley has remained resilient for decades. Whether the proposed wealth tax will fundamentally change that dynamic remains uncertain.
As the new year approaches, the decisions of figures like Thiel and Page are being closely watched, not only for their financial implications but also for what they may signal about shifting attitudes toward wealth, taxation, and residency in the United States.