Billionaires are leaving California for Nevada amid tax fears

California billionaires are planting roots in Nevada amid concern over a proposed wealth tax. One recent example: Don Hankey, a lifelong Californian worth about $8.2 billion, closed on a 5,000-square-foot penthouse roughly 15 miles from the Las Vegas Strip for $21 million in early January.

Ivan Sher, the agent who handled the sale, said the buyer had been searching for some time and was under contract well before the sale closed. The proposed Billionaire Tax Act would impose a one-time 5% levy on residents with more than $1 billion in assets — about $410 million for someone like Hankey — and would be on the ballot in November 2026, with a provision to tax those residing in California on January 1, 2026, if it passes.

Hankey told Forbes, "I just felt a little bit like I wasn't wanted." Nevada, which offers no income tax and low property taxes, has positioned itself as an alternative to high-tax California. Real-estate brokers say the move is reshaping Nevada's luxury market.

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