In early February 2026, California state authorities announced a new tax initiative titled the Billionaire Tax Act. Under its provisions, the state may introduce a one-time 5% tax on individuals whose net worth exceeds USD 1 billion. This proposal has incentivized affluent residents to relocate from California to states with more favorable conditions for living and business, such as Nevada.

🏙️One of the most widely discussed cases is the relocation of billionaire Don Hankey, chairman of the Hankey Group, whose assets are estimated at approximately USD 8.2 billion. Hankey purchased a luxury penthouse in the Las Vegas area for USD 21 million and left California before the potential enactment of the tax.

Google co-founder Sergey Brin took a similar step by acquiring a mansion in the Lake Tahoe area of Nevada for roughly USD 42 million. Another Google co-founder, Larry Page, purchased two mansions in Florida with a total value of about USD 173 million and registered his residence there.

⏱️The bill is scheduled to be put to a vote only in November 2026. However, lawmakers are already considering adding a provision under which the tax would also apply to individuals who were residents of California as of January 1, 2026.

📈As a result, Nevada is gradually emerging as an alternative hub for wealthy individuals, largely because the state does not levy a personal income tax. According to real estate agencies, buyers from California now account for approximately 25% of transactions in the luxury real estate segment in the Las Vegas area.

Not only is the buyer structure changing, but price benchmarks are shifting as well. Previously, a USD 10 million property in Las Vegas was considered top-tier. By early 2026, listings priced between USD 11 million and USD 20 million had already appeared.