Several Hollywood stars, including Mark Wahlberg and Sylvester Stallone, have been making plans to move out of the Golden State, California. Wahlberg sold his California residence a year ago for $55 million and recent reports have revealed that the Rocky star is also planning to sell his southern California mansion to move to Florida with his wife Jennifer Flavin Stallone.
Although multiple factors could have essentially influenced their plans, recent revelations are suggesting a more economically driven motive behind the Hollywood A-listers’ plans to leave the Golden State; California’s excessive tax rates.
California’s Tax Burden Allegedly Pushing Hollywood Elite Away
Considering the revelations made in the recent reports, stating that the high cost of living in California is driving its residents out, Mark Wahlberg and Sylvester Stallone’s plans to move out of California seemed to be calculated to protect their fortunes.
Bob Hamrick, the chair and CEO of Coldwell Banker Premier Realty told Business Insider that while people from all sections are opting to move out, “those who are very wealthy are leaving to get out of the tax challenges and to get out of the regulation.”
The Golden State is known for its heavy taxation, topping the nation’s charts in this regard with a staggering 14.4% income tax, effective from January 1, 2024. And it is expected to exacerbate further, as there are discussions to potentially elevate it to 16.8% and even introduce a proposed wealth tax.
According to the Census Bureau, nearly 50,000 people moved from California to Nevada between 2021 and 2022. The tax dilemma seems to have been further fueled by the implementation of the ‘Mansion Tax’ on high-value property sales.
It imposes additional fees on sellers based on the selling price of the property. For properties sold at a price exceeding $5 million, the seller is subject to a 4% tax, but if the property sale surpasses the $10 million mark, the tax rate escalates to 5.5%.
Considering the heavy tax implementation, it could be assumed that Wahlberg and Stallone’s departure from California could also be driven by a calculated desire to protect their wealth and financial interests.
Sylvester Stallone is Leaving California Permanently
Hollywood star Sylvester Stallone is reportedly planning to bid farewell to California and settle in Florida with his wife Jennifer Flavin Stallone. Reports suggest that the couple would “permanently” leave Southern California.
“We already have the place; it’s a done deal,” the Rambo star informed his three daughters that the move is already in motion during the Season 2 premiere of The Family Stallone, as per The Los Angeles Times. The actor reportedly listed his Hidden Hills mansion for a price exceeding $22 million in December 2022 and is now set to relocate to the $35 million Palm Beach property with his wife.
The actor has acknowledged that it was not easy to move their primary Stallone home across the nation. However, Stallone asserted that his wife “really had her heart set” on the change of scenery. The couple’s relationship encountered turbulence in August 2022, with rumors of an impending divorce. However, they have since reconciled and called off the split.