Key Takeaways
- • Peter Thiel and Larry Page are reportedly preparing to exit California by year-end in response to a proposed 5% wealth tax on billionaires worth more than $1 billion, according to multiple sources familiar with their planning.
- • Larry Page has already begun relocating assets and residence out of state; three LLCs associated with Page filed incorporation documents in Florida in mid-December 2025, signaling concrete movement rather than mere consideration.
- • Peter Thiel, who operates investment firm Thiel Capital from Los Angeles, has explored opening a satellite office in another state and reducing his California presence ahead of a potential ballot measure retroactively applicable to residents as of January 1, 2026.
- • The proposed wealth tax, backed by the Service Employees International Union-United Healthcare Workers West, would impose a one-time tax equivalent to 5% of assets on qualifying California residents; if approved by voters in November 2026, it would apply retroactively.
- • Prior departures by billionaires have demonstrated material tax avoidance impact: six billionaires previously left California with approximately 30% of the state's aggregate billionaire wealth, collectively avoiding $26.7 billion in potential taxes according to a Hoover Institution study.
Summary
High-net-worth individuals Peter Thiel and Larry Page are taking concrete steps to reduce or sever their California residency ahead of a proposed wealth tax ballot measure scheduled for November 2026. According to reporting from the New York Times and multiple corroborating sources, both billionaires view the measure as a material financial threat requiring action before year-end 2025.
The driving force behind these relocation plans is a ballot initiative from the Service Employees International Union-United Healthcare Workers West that would impose a 5% tax on the assets of California residents with net worth exceeding $1 billion. The measure's retroactive effective date—January 1, 2026—creates urgency for wealthy individuals seeking to establish residency elsewhere. If approved by voters, the tax would apply to anyone classified as a California resident on that date, regardless of when they physically depart.
Larry Page, 52, a longtime Palo Alto resident and Google co-founder, has been the most proactive in executing a relocation strategy. In mid-December 2025, three limited liability companies associated with Page filed incorporation documents in Florida, according to state records. Sources briefed on his plans indicate he has discussed leaving California entirely by year-end. Peter Thiel, 58, who maintains a Hollywood Hills residence and operates Thiel Capital from Los Angeles, has explored parallel strategies including opening a satellite office for his investment firm in another state and increasing his time outside California.
Historical precedent supports the financial materiality of such moves. A Hoover Institution study examining previous billionaire departures from California found that six individuals who left took approximately 30% of the state's aggregate billionaire wealth with them, collectively avoiding $26.7 billion in potential taxes. This data suggests that if additional high-net-worth individuals follow Thiel and Page's trajectory, California could face significant erosion of its taxable wealth base and corresponding revenue impact from the proposed measure.
The ballot measure requires sufficient voter signatures to qualify for the November 2026 ballot, meaning the outcome remains uncertain. However, the proactive positioning by major technology figures reflects serious concern about the proposal's electoral viability and the financial exposure it presents to California's wealthiest residents.
The driving force behind these relocation plans is a ballot initiative from the Service Employees International Union-United Healthcare Workers West that would impose a 5% tax on the assets of California residents with net worth exceeding $1 billion. The measure's retroactive effective date—January 1, 2026—creates urgency for wealthy individuals seeking to establish residency elsewhere. If approved by voters, the tax would apply to anyone classified as a California resident on that date, regardless of when they physically depart.
Larry Page, 52, a longtime Palo Alto resident and Google co-founder, has been the most proactive in executing a relocation strategy. In mid-December 2025, three limited liability companies associated with Page filed incorporation documents in Florida, according to state records. Sources briefed on his plans indicate he has discussed leaving California entirely by year-end. Peter Thiel, 58, who maintains a Hollywood Hills residence and operates Thiel Capital from Los Angeles, has explored parallel strategies including opening a satellite office for his investment firm in another state and increasing his time outside California.
Historical precedent supports the financial materiality of such moves. A Hoover Institution study examining previous billionaire departures from California found that six individuals who left took approximately 30% of the state's aggregate billionaire wealth with them, collectively avoiding $26.7 billion in potential taxes. This data suggests that if additional high-net-worth individuals follow Thiel and Page's trajectory, California could face significant erosion of its taxable wealth base and corresponding revenue impact from the proposed measure.
The ballot measure requires sufficient voter signatures to qualify for the November 2026 ballot, meaning the outcome remains uncertain. However, the proactive positioning by major technology figures reflects serious concern about the proposal's electoral viability and the financial exposure it presents to California's wealthiest residents.
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