LeBron James wealth tax question follows reported Philadelphia move
California’s Proposition 40 could still apply to James if voters approve its one-time billionaire tax, based on a Jan. 1 residency test.
By Daniel Okafor · Business Editor
3 min read
The LeBron James wealth tax question is moving into California’s ballot fight after Fortune reported that James is leaving the Los Angeles Lakers for Philadelphia this summer. The timing matters because California’s Proposition 40, headed to voters in November 2026, would place a one-time 5% tax on the net worth of the state’s roughly 200 billionaires.
Fortune described James as the NBA’s first active billionaire. His reported move would put him alongside other high-profile wealthy residents who have left California or shifted assets as the state debates how far it can go in taxing extreme wealth.
Will LeBron James owe California's wealth tax?
Under the measure’s design, leaving California during 2026 may not remove a billionaire from the tax. BDO has described Proposition 40 as using a January 1, 2026, residency test, with no partial-year reduction for people who move later.
Daylight San Diego has reported that net worth would be measured on December 31, 2026. Taken together, those provisions mean James’s reported summer move to Philadelphia would not erase a California residency finding if he lived in the state on the January trigger date.
The measure already faces legal and political opposition. Rep. Kevin Kiley has introduced federal legislation aimed at the proposal, saying it is unfair for California to tax a person who no longer lives in the state. Baker Botts tax attorneys have also raised Dormant Commerce Clause concerns, according to Fortune, signaling that any approved law could face court fights after the election.
Who else has left California over the tax fight?
Fortune has reported that at least six of California’s 214 billionaires moved before the January 1 cutoff, including Google cofounders Larry Page and Sergey Brin and investor Peter Thiel. Later reporting cited by Fortune added Jeff Bezos, Citadel’s Ken Griffin and Oracle’s Larry Ellison to the group of billionaires who have bought property or shifted operations to Florida.
Real estate brokers in Miami have described an increase in quiet land deals tied to residency planning, according to WFMD. The tax fight has made domicile, a person’s official home for tax purposes, a central issue for wealthy Californians trying to prove they live elsewhere.
Other billionaires are spending in politics rather than leaving. Capital & Main reported this week that California’s 15 wealthiest billionaires have put more than $336 million into 2026 federal and state elections. The report said Sergey Brin, Marc Andreessen, Ben Horowitz and Chris Larsen accounted for $331 million of that total.
The claim of a broad billionaire exodus is disputed. SEIU-UHW, the union behind Proposition 40, has told the Los Angeles Times that only a small share of California’s 200-plus billionaires have left and has rejected warnings of a mass departure.
Economic data cited by the Los Angeles Times also complicates the argument that billionaire departures are draining California of investment. The state attracted about $335 billion in venture capital this year, roughly 10 times more than any other state, with nearly 90% going to AI companies, the Times reported.
What has James said about money and the move?
James has pushed back on public estimates of his wealth. In a resurfaced clip cited by Fortune, he joked that “Google search is a lie” when discussing reports about his finances.
NBA insider Shams Charania has reported that taxes are not the main reason behind James’s free-agency decision, according to Fortune. Still, if Proposition 40 passes, James could become a prominent example of how California’s proposed billionaire tax may reach people who leave the state after the residency date.
This story draws on original reporting from Fortune.