/images/2023/09/14/woman_using_laptop.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
:format(webp)/images/2026/07/01/1_jeff-bezos-3.jpg)
/authors/adam-palasciano-headshot_dQuaFvo.jpg)
/authors/becca-headshot.jpg)
Add Us On Google
Jeff Bezos made one move that may have saved him close to $1 billion in state taxes: He left Washington for Florida. The Amazon founder said he wanted to be closer to his parents, but his new home state also conveniently doesn't levy an individual income tax.
If you're trying to keep more of your money, this billionaire-sized result highlights a financial factor that's easy to overlook. The number is eye-catching, but the more useful lesson sits much closer to home — and it can matter long after your final paycheck.
Here's why you might want to consider Bezos' strategy when planning your retirement.
Set up direct deposit - pocket $400
Set up an eligible direct deposit with SoFi Checking and Savings and you could pocket a bonus of up to $400. Make the switch, set up direct deposit, earn the bonus. It basically takes no extra work at all other than following these steps.
Why people are switching: This account earns up to an insane 4.00% APY1 <p>Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC.</p> on savings for up to six months (3.10% APY standard + 0.90% APY boost) on top of that $50 or $400 bonus.2 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at <a href="https://www.sofi.com/banking/checking-offer/">sofi.com/banking/checking-offer/</a></p> That's way better than the measly 0.38% APY (as of 06/15/26)3 <p>Based on <a href="https://www.fdic.gov/national-rates-and-rate-caps">this</a> FDIC data, as of 6/15/26.</p> national average savings accounts offer.
No monthly fees and no surprises. Open your account and earn up to a $400 bonus
The $1 billion figure starts with stock sales
Since his move in 2023, Bezos has sold roughly $13.6 billion of Amazon stock. Washington imposes a 7% tax on long-term capital gains, while Florida has no comparable individual tax. Applying 7% to nearly all of those proceeds would have resulted in a massive tax bill of nearly $952 million. Instead, in Florida, his state tax bill on the sale was $0.
The headline figure is a reasonable estimate, but the same logic and strategy can be applied to your own tax situation.
Retirement withdrawals make residency a tax lever
This lesson isn't limited to people selling billions in stock. Traditional 401(k) and IRA distributions are generally included in federal taxable income, and many states also tax at least some retirement income.
For example, a retiree withdrawing $80,000 in a state that effectively taxes that income at 5% could face about $4,000 in state tax, while a qualifying resident of a no-income-tax state might owe none at the state level. Over 15 or 20 years, even a modest annual difference can add up.
The state-by-state gap can be wide
As of 2026, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don't impose a broad-based individual income tax. At the other end, California, New York, and New Jersey all have top individual rates of more than 10%.
A lower income-tax bill also doesn't guarantee a lower overall cost of living. Property taxes, homeowners' insurance, sales taxes, housing costs, and access to health care can erase part of the savings.
Texas, for example, has no individual income tax but can come with substantial property taxes, while Florida homeowners may face high insurance costs. It's important to look at your complete budget, not one line on a tax return.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.4 <p>Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating. "Debt-Free" applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Results vary.</p>
Sign up for a free debt assessment here.
A paper move won't establish tax residency
You can't buy a Florida condo, keep your main life in New York or California, and automatically claim the lower-tax state. Establishing domicile generally means proving that the new state is your permanent home, supported by factors such as where you spend your time, maintain your home, register to vote, hold a driver's license, receive medical care, and manage personal affairs.
For example, New York classifies someone as a statutory resident if that person maintains a permanent place of abode in the state and spends 184 or more days there per year.
It's always important to keep detailed residency records and consult with a tax professional before a major sale, Roth conversion, or retirement withdrawal.
Bottom line
Would the annual tax savings from moving outweigh the cost of housing, insurance, travel, and leaving your current support network? Bezos' result was unusually large, but the same calculation can matter for a middle-class retiree drawing from a 401(k), IRA, pension, or taxable investment account.
Before relocating, compare your likely state income taxes with the full cost of living and the treatment of each income source. Choosing where to live can support your effort to build real wealth, but only when the move fits both your finances and the life you want to have.
More from FinanceBuzz:
- Retire like the rich: 14 ways you could build wealth in your 50s.
- Find out if you could pay less for car insurance in just a few clicks.
- Make these 7 savvy moves when you have $1,000 in the bank.
- 14 moves seniors could benefit from but often forget about.
/images/2021/04/21/adobestock_192812280_1200x628.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
/images/2025/01/28/adobestock_628402894_1.jpeg)
/images/2024/09/04/adobestock_669069249_editorial_use_only_1.jpeg)
/images/2020/03/02/tattoo-woman-bar.jpeg)
/images/2020/12/21/smiling-couple-looking-at-laptop-screen.jpeg)
Intro Offer
INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
Annual Fee $0 Why we like it
/images/2025/01/23/discover_it_cash_back_card_art_gold.png)
/images/2022/04/20/senior-couple-happy-laptop-computer.jpg)
/images/2022/02/04/woman_with_lottery_ticket.jpg)
/images/2021/05/05/happy-young-investor.jpg)
/images/2025/06/06/old-couple-stress-and-document-for-insurance.jpg)
/images/2023/05/29/woman-filing-taxes-while-writing-on-paper-at-home.jpeg)
/images/2021/08/10/happy-woman-doing-taxes.jpg)
/images/2023/11/10/mature_couple_researches_at_home.jpg)
/images/2025/09/10/senior_couple_doing_their_finances.jpg)
/images/2026/07/01/22_donald-trump-7.jpg)
/images/2025/06/12/elderly_woman_holding_handrail.jpg)
/images/2026/07/01/7_donald-trump-1.jpg)
