Uber cofounder Travis Kalanick says he moved to Austin, Texas, before a proposed California billionaire tax’s residency cutoff, a move that could spare him a potential tax bill of $180 million if the measure becomes law.
California voters are scheduled to decide on Proposition 40 on November 3, 2026. The proposal would impose a one-time 5% tax on the worldwide net worth of billionaires who met the measure’s California residency requirements as of January 1, 2026.
Several wealthy residents have reportedly left California ahead of the cutoff. Kalanick, whose estimated net worth is $3.6 billion, according to Forbes, says he established his primary residence in Texas on December 18, 2025. At that estimated wealth level, a 5% tax would amount to approximately $180 million, although the final liability would depend on the measure’s provisions and his circumstances.
“Just to be clear, on December 18, I moved to Texas. I don’t know what’s so specific about December 18, but let’s just say it’s prior to January,” Kalanick told TBPN in an interview, referring to the January 1 residency cutoff.
“Yeah, so I’m a primary resident of Texas,” he added.
Why Travis Kalanick Chose Texas Over Florida
While some wealthy California residents have moved to Florida, Kalanick chose Austin as his new home.
Google cofounder Larry Page reportedly spent $173.4 million on two Miami properties after leaving California ahead of the proposed tax’s cutoff, according to Fortune.
Amazon founder Jeff Bezos has also made a high-profile relocation, moving from the Seattle area to Miami before Washington state enacted a millionaires tax, as reported by Fortune.
Kalanick acknowledged the growing interest in Florida among wealthy individuals during his TBPN interview.
“I get a little bit [of] FOMO on like, these people going to Florida. I’m like, dude! Why so much Florida action?” he said. “Come on, homies.”
Miami developer Robert Rivani previously described the trend to Fortune, saying, “All the big guys [are] moving down here.”
However, Kalanick’s move to Texas was not entirely sudden. He told TBPN that he had owned a home on Lake Austin, roughly 20 minutes outside the city, for about five years. The lake and his interest in waterskiing were among the attractions.
Craft Ventures cofounder David Sacks also relocated to Austin in December 2025, according to the Austin Business Journal.
Kalanick has continued to embrace his new surroundings. In June, he posted a video on X showing what he called his “5-minute jet ski commute” across Lake Austin. The video showed him traveling to the office of Atoms, the robotics company he now leads.
The company was previously known as CloudKitchens before its shift toward robotics, according to CNBC.
Study Estimates Billionaire Departures Could Reduce Tax Revenue
Kalanick is among several billionaires who reportedly left California between the proposal’s filing in October 2025 and the January 1, 2026, residency cutoff.
A working paper by Stanford economists Benjamin Jaros and Joshua Rauh, published in October 2026, estimates that publicly confirmed departures accounted for approximately $540 billion in wealth, or nearly 30% of the wealth the proposed tax could have reached.
The study counts publicly confirmed departures rather than attempting to establish the residency status of every billionaire.
Supporters of Proposition 40 have projected that the measure could generate approximately $100 billion in revenue. However, Jaros and Rauh estimate that collections could be closer to $30 billion after accounting for reported billionaire departures.
Their simulations also consider potential losses in income tax revenue from wealthy residents who leave California. Under those scenarios, the state could experience an average net loss of $38.9 billion.
The estimates highlight a central disagreement surrounding the proposal: how much revenue a one-time wealth tax could generate after accounting for changes in residency and other tax collections.
What California’s Proposed Billionaire Tax Would Cover
Under the text of Proposition 40, the proposed tax would apply to qualifying billionaires’ worldwide net worth, with exclusions for directly owned real estate and most retirement accounts.
If approved, the tax payment would be due in 2027. Eligible taxpayers could spread their payments over five years, subject to an additional charge.
According to the California Legislative Analyst’s Office, 90% of the revenue would be directed toward public health care services, including Medi-Cal.
Supporters argue that the measure could provide substantial funding for public services. Critics and researchers have raised questions about the effect of billionaire departures on the amount ultimately collected.
California is not the first jurisdiction to confront concerns about wealthy residents relocating in response to tax changes.
The United Kingdom scrapped its non-domiciled tax status last year, and some wealthy individuals have subsequently left the country. One example cited by Fortune is property investor David Reuben, who moved to Monaco this summer, according to the publication’s report.
Propositions 41 and 42 Could Complicate the Tax’s Future
Even if Proposition 40 passes, its implementation could face additional legal and political challenges.
Two other measures on the same ballot, Propositions 41 and 42, could affect whether the proposed billionaire tax remains in force.
Proposition 41 would cancel certain new state taxes enacted after January 1 if their revenue is exempt from California’s spending limit. Proposition 42 would prohibit new state taxes on personal property other than real estate, along with certain retroactive taxes.
Because Proposition 40’s proposed tax could fall within the scope of those measures, legal disputes could arise over how the propositions interact. The ultimate effect would depend on their final language and how courts interpret the competing provisions.
A September 2026 statewide survey by the Public Policy Institute of California found that 52% of likely voters supported Proposition 40, while 51% supported Proposition 41 and 54% supported Proposition 42. Those figures reflect respondents’ stated preferences at the time of the survey, not the final election results.
The proposed tax has also drawn support and opposition across political lines. California Gov. Gavin Newsom, a Democrat, opposes the measure, according to Fortune. Sen. Bernie Sanders, an independent from Vermont, and Rep. Ro Khanna, a Democrat from California, have been among its prominent supporters.
If Proposition 40 passes, legal challenges could follow. The measure allows opponents 60 days after approval to file a challenge, and its use of a January 1 residency cutoff could become a point of dispute.
Could California Still Tax Kalanick?
Kalanick’s situation would depend on more than the date he says he moved.
He has publicly stated that he established his primary residence in Texas on December 18, 2025, before the proposed January 1, 2026, cutoff. However, whether California tax authorities accept that claim would be important in determining whether he could be subject to the tax.
The measure would give authorities broad auditing powers over billionaires they believe should have been liable.
Consequently, Kalanick’s reported relocation does not, by itself, establish that he would be exempt from the proposed tax. His actual tax exposure would depend on the final law, the relevant residency rules and the facts surrounding his move.
For California, the debate over Proposition 40 extends beyond individual billionaires. Its outcome could shape discussions about public health funding, tax revenue and the potential consequences of wealthy residents moving to other states.
This story was originally published by Fortune.
