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Finance

How Much Does Elon Musk Pay in Taxes?

Musk revealed at the Wall Street Journal’s 2020 CEO Council summit that he relocated his residence to Texas from California. Since Texas is known for having a favorable tax climate, many people want to know how much Musk pays in taxes. Did he select Texas in order to pay lower taxes?

How much does Elon Musk pay in taxes?

You aren’t going to get hard figures on what Musk pays in taxes because the billionaire doesn’t publish his tax records. Even outspoken celebrity entrepreneurs keep some of their personal financial details private.

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Elon Musk doesn’t get a salary for his role as Tesla’s CEO. Instead, the executive’s primary compensation is stock options, which are granted based on the strength of Tesla’s financial results and stock performance. Musk should pay income tax whenever he exercises his stock options. 

Musk owns real estate property, which makes him subject to local property taxes. Also, the Tesla executive would pay capital gain tax when he sells his properties as he did just before relocating from California. 

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Relocating to Texas from California should also save Musk a ton in taxes. California has the highest income tax rate in the country, while Texas doesn’t have a personal income tax. Musk could save hundreds of millions of dollars if not billions of dollars by moving his residence from California to Texas. 

Source: Getty Images

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View more information: https://marketrealist.com/p/how-much-does-elon-musk-pay-taxes/

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