California loses its Fortune 500 crown to a red state as billionaire tax fears loom

Don’t mess with Texas — especially if you’re a Californian.In a symbolic blow to the Golden State’s longstanding economic dominance, Texas has officially dethroned California as the state with the most Fortune 500 companies headquartered there.According to the 2026 Fortune 500 list, the Lone Star State now claims 57 companies with roughly $2.8 trillion in revenue, narrowly surpassing California’s 56 companies and $2.7 trillion.For years, California proudly held the top spot, boasting tech giants like Chevron, Tesla and Oracle.

But years of high taxes, crushing regulations and aggressive cost-of-living pressures have accelerated a corporate exodus — with Texas reaping the benefits of its no state income tax (one of only nine US states that does not have it), lighter regulations and a business-friendly playing field.The shift comes as fears grow over proposed “billionaire taxes” in California, including a controversial 5% one-time wealth tax on the state’s wealthiest inhabitants.Several prominent billionaires, including Uber co-founder Travis Kalanick, have already relocated to Texas towns like Austin, citing the looming tax threat.

Other tech moguls, like former Silicon Valley power player and Palantir Technologies co-founder Joe Lonsdale and venture capitalist David Sacks have also expanded operations or moved assets to lower-tax states.Multiple major companies have followed suit in recent years, relocating headquarters or key operations from California to Texas cities including Dallas and Houston.Executives frequently cite lower taxes, affordable housing and fewer regulatory headaches as their primary drivers.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story This marks a significant but narrow reversal of fortune between the competing states...