Mark Zuckerberg makes deal with Meta to pay California billionaire tax

Mark Zuckerberg has reached an agreement with Meta's board to help him pay a proposed California wealth tax on billionaires without losing his ownership stake, according to regulatory filings reported by the Associated Press and NBC Bay Area. The tax, which will be on the November 3 ballot, would impose a one-time 5% levy on Californians with a net worth exceeding $1 billion.

Zuckerberg, whose net worth is estimated at over $220 billion, would face a tax liability of more than $11 billion if the measure passes, the filings show. The deal allows him to sell a new class of non-voting shares for any reason, including to pay the potential tax, while maintaining majority ownership of Meta.

The compromise followed Zuckerberg's earlier consideration of selling his Palo Alto home in anticipation of the tax. However, he has committed to remaining in California for eight years unless unforeseen circumstances make relocation advisable, according to the filings.

The proposed tax would apply to anyone with a primary residence in California as of January 1, 2026. Revenue from the tax is intended to offset federal funding cuts to healthcare, with 10% allocated to education and food assistance programs, as reported by the Associated Press.

Supporters argue the tax ensures the ultra-rich pay their fair share, while opponents, including California Governor Gavin Newsom, warn it could drive wealthy residents out of the state, potentially impacting state income tax revenue.

Meta had not immediately responded to requests for comment on the deal at the time of reporting.