Amazon billionaire Bezos has changed his residence to avoid taxes.

While ordinary people use various tricks to save hundreds or thousands of dollars from their tax money, billionaires like Amazon founder Jeff Bezos think on a much larger scale. It is reported that he has managed to cut nearly a billion dollars from his tax bill through a very simple strategic move, without using any secret tax loopholes.

The simple strategy Bezos implemented was to change his residency from Washington State to Florida. While it might be a question of how such a large amount of money can be saved by moving from one state to another, the real secret lies in the tax rates levied at the state level.

Having lived in Seattle for many years, he announced in 2023 that he would be moving to Indian Creek Village in Florida, also known as the "Billionaires’ Bunker." A crucial factor here was that Washington State levies a 7% tax on all capital gains, while Florida, following a completely different policy, is one of the few states that does not impose state income tax or capital gains tax.

Although he stated that he changed his residency to be closer to his elderly parents, it is not surprising that it was also a financially motivated move. After changing his residency, Bezos sold Amazon shares worth approximately $13.6 billion, and if he had still been living in Seattle, where there is a 7% capital gains tax, he would have had to pay $952 million in taxes for that.

Living in Florida reduced his tax bill to zero, and while most people do not face such billion-dollar tax bills, this incident clearly illustrates how simple changes like where we live can significantly impact our financial affairs. Especially for retirees, living in an income-tax-free state like Florida can significantly reduce the amount of tax they have to pay when withdrawing their funds.