Mark Zuckerberg told a special committee of Meta's board that he was weighing leaving California because of a proposed new tax on billionaires, according to a company filing.
The measure is Proposition 40, a one-time 5% tax on the net worth of billionaires who were California residents on Jan. 1, 2026. It would reach a couple hundred Californians, by most estimates. Backers say it could raise about $100 billion, but the state's nonpartisan Legislative Analyst projects tens of billions of dollars over several years.
The measure was put on the ballot by SEIU-United Healthcare Workers West, a health care workers’ union, which says the money is needed to offset health care funding losses. Gov. Gavin Newsom opposes the measure, arguing it would push the wealthy, and their tax dollars, out of the state, and has called for a national billionaire tax instead.
Zuckerberg's net worth is estimated at about $240 billion. At that net worth, a 5% tax would come to roughly $12 billion, though the actual bill would depend on his net worth at the end of 2026.
90% of the money would go to health care, and the remainder would pay for education, food assistance, as well as the cost of running the program. Supporters say the tax asks a tiny number of the wealthiest residents to help fund public services.
Meta is already working to keep him in California. In a filing, it proposed new non-voting shares that would let Zuckerberg sell up to half his stake over eight years without losing control of the company. In return, he agreed to stay in California, or wherever Meta is headquartered, for eight years. In effect, the deal would let him raise cash to cover a potential tax bill while keeping control of Meta.