The recent sale of 3.3 million Amazon shares, valued at approximately $737 million in late June 2025, represents a continuation of Jeff Bezos's strategic stock liquidation throughout the year. This follows a notable transaction earlier in the year, coinciding with his wedding to Lauren Sánchez, where he divested 25 million Amazon shares for about $5.4 billion at an average price of $217.12 per share. Subsequent sales in late June included 3.1 million shares at $221.42 per share ($686.4 million) and an additional 224,926 shares at $223.56 per share ($50.3 million). Despite these substantial divestments, Bezos remains Amazon's largest individual shareholder, holding approximately 905 million shares, which constitutes about 9.6% of the company's outstanding stock.
These transactions are consistent with Bezos's established approach to diversifying his substantial wealth, often to fund various entrepreneurial and philanthropic initiatives. The sales were conducted under Rule 10b5-1 trading plans. This regulatory framework enables corporate insiders, such as executives, to prearrange stock trades, thereby mitigating potential accusations of insider trading. Bezos has historically channeled proceeds from his Amazon stock sales into significant ventures like Blue Origin, his aerospace company, and his philanthropic endeavors, including the Bezos Day One Fund and the Bezos Earth Fund.
His relocation to Miami in late 2023 has prompted considerable discussion regarding its tax implications. Washington state, his former residence, implemented a 7% capital gains tax in 2021, whereas Florida imposes no such tax. This strategic move is estimated to have saved him approximately $600-610 million on his planned stock sales in 2024 alone. Beyond the immediate savings on stock sales, moving to Florida also shields his estimated $161-194 billion fortune from Washington's 20% estate tax, the highest in the nation, potentially saving his heirs billions. While Bezos publicly cited family reasons and proximity to Blue Origin's Cape Canaveral operations as motivations for the move, the timing, coinciding with Washington's new capital gains tax, suggests that the substantial tax benefits were a significant contributing factor to his decision. Even after these extensive liquidations, Bezos's net worth continues to exceed $220 billion, positioning him as the third richest person globally.
Rule 10b5-1 Trading Plan Explained:
A 10b5-1 trading plan is a formal, written agreement between corporate insiders and brokers. It outlines predetermined instructions for trading company stock, allowing insiders to sell shares according to a preset schedule without incurring accusations of insider trading. For a plan to be valid, it must specify the number of shares to be traded, the timing of transactions, and the price parameters. Crucially, the insider must not possess material nonpublic information (MNPI) when establishing the plan and must provide written certification of this fact.
Key features of these plans include mandatory cooling-off periods before trading can commence, the requirement that trades be executed by an independent third party with discretionary authority, and a certification that the plan is entered into in good faith. These plans typically have a duration of six to eighteen months and can provide executives with more opportunities to trade shares, sometimes even during company-mandated blackout periods. The SEC has recently reinforced regulations surrounding these plans, introducing stricter requirements for good faith certification and cooling-off periods to prevent potential abuses of this trading arrangement.
Miami Relocation Tax Implications:
Jeff Bezos's move to Miami in late 2023 has proved to be a shrewd financial decision, potentially saving him hundreds of millions of dollars in taxes. By establishing residency in Florida before selling substantial portions of his Amazon holdings, Bezos successfully circumvented Washington state's 7% capital gains tax on investment profits exceeding $250,000, which came into effect in 2022.
Florida provides significant tax advantages for high-net-worth individuals like Bezos, as it levies neither a state income tax nor a capital gains tax. Beyond the immediate savings on stock sales, this relocation also protects his estimated $161-194 billion fortune from Washington's substantial 20% estate tax, which is the highest in the nation. This could potentially save his heirs over $32 billion. While Bezos publicly attributed his move to family reasons and the proximity to Blue Origin's operations in Cape Canaveral, the timing, coinciding with the implementation of Washington's new capital gains tax, has led many financial analysts to conclude that the substantial tax benefits played a significant role in his decision.
