‘Come to take your money’: Stephen A. Smith says taxes would eat 2/3 of his income in California — so he fled to Florida

Jing Pan

Sat, September 5, 2026 at 1:45 PM GMT+3 10 min read

Stephen A. Smith speaks on stage on July 17, 2026.

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Stephen A. Smith has built a lucrative career by refusing to hold back. Now, the ESPN firebrand is unloading on a target that hits especially close to home: the staggering tax bill facing some of America's highest earners.

In a wide-ranging appearance on The Culture Table, Smith explained why he has little patience for policies that push taxes higher — and why California is one place where he would hate to collect his paycheck.

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"I can't stand high taxes," Smith said (1). "And if y'all think I'm lying, federal income tax is nearly 40% for people in my range. And then, on top of it all, is an additional 13.6% in the state of California. And we ain't even getting the L.A. city tax. And we ain't getting FICA, Social Security and disability."

By Smith's telling, the end result is brutal: "You're walking home with less than 34% of your money messing around in California. I got a problem with that."

And his criticism goes beyond the Golden State.

"It's similar in New York. I got a problem with that. So, because of that, I speak out against liberal policies that come to take your money," he added.

These remarks have struck a nerve online, with clips of the interview spreading rapidly across social media. And the numbers sound especially explosive coming from Smith, who signed an ESPN extension worth at least $100 million (2) over five years in 2025 — and that's before his SiriusXM deal and other incomes (3) are factored in.

His solution? Move to Florida.

Back in 2024, Smith told NBA Hall of Famer Kevin Garnett that he was house hunting in the Sunshine State — and made clear that taxes were a major reason.

"I'm looking for another crib in Florida. So, in about two months from now I might be in Florida. I got to have primary residence. I'm getting murdered in taxes in New York and LA. Come on, man, that's too much. I'm in the two highest tax states," Smith complained (4).

Property records later showed that Smith had purchased a $9.25 million 7,500-square-foot estate in Pinecrest, an affluent community in Miami-Dade County.

To be sure, the California tax bite may not be quite as extreme as Smith suggested. The top federal income tax bracket is 37%. On top of that, California's top marginal state rate is 13.3%, close to the 13.6% Smith cited. Meanwhile, New York's top rate is lower than California's, but it adds a New York City income tax on top for residents — part of why Smith singles it out.

Add in Medicare taxes for high earners and the marginal rate — the tax on the last dollar earned — really can creep past 50%.

But Smith's broader point is directionally right: States like California and New York are punishingly expensive for people at the very top of the income ladder.

The contrast, by comparison, is stark. Florida imposes no state personal income tax at all. For someone pulling in eight figures a year like Smith, that gap can amount to real money.

'An obligation to pay as little tax as possible'

While relocating to a lower-tax state can potentially help high earners keep more in their pockets, wealthy households rarely rely on that alone to reduce their tax bills.

For decades, high-net-worth individuals have used proven strategies — and specific types of assets — to legally slash what they owe to the IRS. According to a report from ProPublica (5), some billionaires in the U.S. paid little or no income tax relative to the vast fortunes they've amassed.

That's largely because billionaires build their wealth through assets — not wages. As the value of these assets rises, their net worth grows, but the U.S. tax system isn't designed to fully capture those gains. Capital gains are typically taxed at lower rates than regular income and taxes aren't owed until the assets are sold.

In fact, as NYU Stern School of Business professor Scott Galloway once put it, if you're trying to build wealth, you have "an obligation to pay as little tax as possible."

The tax benefits of real estate

One asset class America's wealthy have relied on for decades is real estate — in part because of the generous tax treatment it receives.

When you earn rental income from an investment property, you can claim deductions for a wide range of expenses, such as mortgage interest, property taxes, insurance and ongoing maintenance and repairs.

Real estate investors also benefit from depreciation — a tax deduction that recognizes the gradual wear and tear of a property over time. Investors can even use tools like refinancing and 1031 exchanges to keep their capital compounding instead of cashing out.

Today, you don't actually need to be a millionaire — or buy a single property outright — to invest in real estate. Real estate investment platforms like mogul offer an easier way to get exposure to this income-generating asset class.

As a real estate investment option offering fractional ownership in blue-chip rental properties, it gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or late-night tenant calls.

Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.

Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Diversify your real estate portfolio

Another option is to leverage multifamily real estate investing. In fact, in a report (6) prepared by JPMorgan, Al Brooks — the firm's vice chair of Commercial Banking — said, "I think multifamily housing is absolutely where you want to be as an investor."

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

Keep more of what you earn

The wealthy don't just focus on what they invest in. They also pay close attention to where those investments sit. Using tax-advantaged retirement accounts can be a powerful way to keep more capital compounding over time.

For instance, traditional IRAs and Roth IRAs allow investments to grow either tax-deferred or tax-free, depending on the account type.

While many retirement accounts primarily hold stocks and mutual funds, some investors choose to diversify further. Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, has repeatedly warned that many portfolios lack one key safe haven asset: gold.

"People don't have, typically, an adequate amount of gold in their portfolio," Dalio told CNBC (7) in 2025. "When bad times come, gold is a very effective diversifier."

Long seen as the ultimate safe haven, gold isn't tied to any single country, currency or economy. It can't be created at will by central banks like fiat money, and in times of economic turmoil, market turbulence or geopolitical uncertainty, investors tend to pile in — driving up its value.

Despite a recent pullback, gold prices have surged by more than 25% (8) over the last 12 months, as of September 2026.

One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.

Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today. Just keep in mind that, typically, gold is best used as one part of a well-diversified portfolio.

Work with an expert

The ultrawealthy often have teams of professionals helping them structure their finances, manage investments and think through the tax consequences of major decisions.

But you don't need a billionaire's balance sheet to benefit from expert guidance.

A qualified financial advisor can help you look at the full picture — your income, investments, retirement accounts, real estate, tax situation and long-term goals — and build a strategy that's designed to keep more of what you earn working for you.

That can be especially important when the tax code treats different types of income differently. Wages, capital gains, dividends, retirement withdrawals and real estate income can all come with different rules — and the right strategy can help you make smarter decisions before tax season arrives.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.