Last updated on December 8th, 2022 at 02:38 pm
But it’s unclear if the billionaire’s plan is connected with this.
Elon Musk, it seems, is going to move to Texas. Earlier this year, the second richest person in the world had some conflict with California authorities, where Musk now lives. As a result, he put up all of his homes in the state for sale, and several knowledgeable sources say that he will soon move completely to Texas.
Does Elon Musk want to move to Texas to avoid paying taxes? Texas does not have the income tax that California has
Also, in Texas, one of Tesla’s factories, one of SpaceX’s complexes, and the headquarters of The Boring Company are located. Musk has also announced that he intends to move Tesla’s headquarters to Texas.
However, most media outlets focus on a different aspect. The fact is that there is no income tax in Texas, and in California, it is one of the highest in the United States – 13.3%. As part of its 10-year contract with Tesla, the company must pay Musk over $ 50 billion in a dozen tranches. When the head of Tesla uses options, he will have to pay income tax on profits. But this is in California – there is no tax in Texas. Thus, Musk will save several billion dollars in this direction alone.
As a result, we can say that Musk is moving to Texas to legally avoid income tax, although it is not a fact that this goal drives him. It is also worth noting that we are talking about a local income tax, which is different in each state, and in some, there is none at all. Simultaneously, the federal income tax is the same everywhere in the United States, at 21%.
