Paradise Valley Independent | May 07, 2026

Amid the emergence of taxes on the ultra-rich, Valley Realtors are seeing an uptick in interest from that demographic to relocate to this state.

Local real estate agents to the elite have received an influx of calls and visits from the ultra-rich looking to potentially relocate and buy homes in affluent Arizona areas such as Paradise Valley and Scottsdale.

In March, Washington Gov. Bob Ferguson signed Senate Bill 6346, or the Millionaires’ Tax, into law, which creates a tax on income over $1 million in a single year.

While it is not a tax on total income or property values, it applies to long-term capital gains, such as the sale of stocks and bonds, and is estimated to affect less than 1% of Washington households, around 20,000.

Luxury Realtor Scott Grigg, with Grigg’s Group powered by Altman Brothers, said ever since the bill in Washington was signed, he has been receiving calls from the state.

He said the ultra-wealthy from Washington have become his biggest buyer demographic right now, and he is currently working with 11 such residents and helping them find homes here.

The California migration to Arizona has long been a major relocation corridor in this country, and is the top origin state today for new Arizona residents, but Grigg said the interest from Washington has been significant since the signing of the new tax bill, which goes into effect Jan. 1, 2028.

And he is taking advantage of it by increasing his advertising to the region.

“We have seen a strong, strong demand from Washington within the last 30 days,” he said. “People are coming over for a long extended weekend and by time they leave they have tied up a property to purchase.”

Washington is not the only state implementing such bills.

Many states have put forth recent efforts to increase taxes on the ultra-rich in order to close budget deficits, fund social services and address economic inequality.

Maine Gov. Janet Mills signed a millionaire tax into law in April that imposes a 2% surcharge on individual income exceeding $1 million and joint income over $1.5 million. Massachusetts implemented a 4% tax on income over $1 million in 2023.

There is also a federal bill proposed that would levy a 2% tax on net worth between $50 million and $1 billion, and a higher rate on wealth over $1 billion.

Organizers of the proposed “2026 Billionaire Tax Act” in California, which would impose a one-time 5% tax on residents with net worths of $1 billion or more, say they have enough signatures to reach the ballot.

Local luxury Realtor Chris Karas said some of those California residents are not waiting for the ink to dry on the ballots. He added that taxes are already high in California, and trading Arizona’s taxes for their taxes is very attractive.

“This is definitely a reality,” Karas said. “Their dollar goes a lot further in Arizona.”

About 50% of Karas’s buyers in the ultra-luxury market are coming from Washington and California, and he says he is getting calls daily from those states.

And with the possibility of a tax on the ballot, he says some California residents are preparing themselves, while others don’t want to wait for it to potentially pass.

“These taxes that these states are passing has been one of the best marketing campaigns we’ve seen for Arizona in a long time,” Karas said.

While taxes on the ultra-rich could have an effect on migration to Arizona, some Realtors say they might stay put due to the current unpredictable geopolitical environment until things settle down.

Realtor Rebecca Durfey said the highest earners might not want to do much until there is a trajectory of how things will go.

Taxes alone might not bring a big migration from other high-tax states because there are many states that offer that shelter, but other factors could contribute to more of an influx, she said.

“Our most affluent population tends to be quite padded, but a war has a ripple effect over all financial conditions, so I expect many are waiting,” Durfey said. “Typically, the wealthiest look at their corporate profits, stock market, and other financial investments for comfort. We are not seeing a significant adjustment in the stock market, but we could, so I think once that is played out, we will see a healthy influx of the wealthiest moving to Arizona.”

Article by:

Philip Haldiman | Paradise Valley Independent