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Why property taxes in one of America’s wealthiest towns are rewriting the rules of luxury real estate.
In Palm Beach, Florida, it’s not just the sunshine and sea breeze that people are chasing. For a select few, this island offers something more elusive: a sense of belonging. Not the kind found on Fifth Avenue or in the Miami skyline, but a quieter, more enduring type of status—a place where wealth settles in, not just passes through.
But that sense of belonging comes at a steep price. On this 16-mile-long island of just 9,000 residents, a growing number of homeowners are receiving an unexpected and rather exclusive piece of mail: a seven-figure property tax bill.
At the top of this rarefied list sits billionaire hedge fund manager Ken Griffin, the founder of Citadel. His real estate footprint in Palm Beach is both vast and strategic. His crown jewel? A sprawling oceanfront assemblage on Blossom Way, currently under development and reportedly meant for his mother. The project has already cost over $350 million—and just the taxes on that one property have crossed $10 million a year, according to Bloomberg.
He’s not alone in that tax bracket. Fashion mogul Tommy Hilfiger, real estate investor John Paulson, and Estée Lauder heir William Lauder have all secured multi-million-dollar estates on the island, each one bringing with it a tax bill that rivals most Americans’ lifetime earnings. Lauder’s $155 million purchase of Rush Limbaugh’s former oceanfront compound is one of the most expensive residential transactions in U.S. history—and yes, it comes with a tax bill to match.
To understand what’s happening here, you have to look past the manicured hedges and into the books. The Town of Palm Beach, once considered a sleepy seasonal enclave, is now enjoying a fiscal windfall. In 2023 alone, the town collected $84 million in property taxes—up from just $66 million three years prior. Countywide, property tax revenue hit $359 million last year, a 75% increase from 2018.
“It’s been a massive windfall for the region,” said Dorothy Jacks, the Palm Beach County property appraiser. “At this point, nothing surprises me anymore.”
But here’s the twist: it’s not about a higher tax rate. In fact, property taxes in Florida are based on assessed value, not income. As University of Chicago professor Christopher Berry explains, “If I’m earning $100 million a year, I pay a higher income tax rate than someone earning $100,000. But if I own a $100 million house, I pay the same property tax rate as someone with a $100,000 house.”
That creates a paradox. While most billionaires can shield income through trusts, foundations, or offshore structures, they can’t hide from property tax. If you own the dirt, you pay the bill.
And that’s exactly what makes Palm Beach so fascinating to those of us in the real estate world. For ultra-high-net-worth individuals, a high tax bill isn’t necessarily a deterrent—it’s a feature. It signals exclusivity. It discourages short-term speculators. And most importantly, it helps preserve the long-term value of their investment.
Think of it this way: for someone like Griffin, who’s reportedly invested over $1 billion in South Florida real estate, that $10 million tax bill is a line item—one that guarantees privacy, ocean views, and a hedge against inflation. Many of these buyers are establishing multigenerational trusts, managing properties through family offices, and integrating their real estate portfolios into broader wealth management strategies.
But not everyone is celebrating. Longtime residents, retirees, and local shop owners are feeling the squeeze. Rising valuations mean higher taxes, even for modest homes. Neighborhoods are becoming quieter—not because they’re unsafe, but because many of these homes sit empty for much of the year. Diversity—economic and cultural—is being eroded in real time.
Still, from a professional standpoint, this phenomenon offers valuable insight. Palm Beach is a microcosm of a global trend: luxury real estate is becoming less about lifestyle and more about long-term financial strategy. Whether you’re a real estate agent, a wealth advisor, or a city planner, what’s unfolding here is worth your attention.
Because behind every million-dollar tax bill is not just a house—it’s a statement of intent. A signal that this particular square of earth has value far beyond its sand and stucco.
So yes, a $10 million property tax bill may sound shocking. But what it really represents is a quiet reshaping of the American dream—where wealth isn’t just displayed, it’s embedded in the very foundation of a place like Palm Beach.