Texas is home to some of the wealthiest individuals in the world, including the wealthiest man on the planet, Elon Musk. But what is it about the Lone Star State that attracts so many billionaires, and why do so many of the world’s richest people choose to live here?
The answer lies in the state’s tax-friendly environment, its business-friendly climate, and its rich economic history, especially in industries like oil, technology, and entertainment. Here’s a closer look at the wealthiest individuals who have made Texas their home.
Why Do Billionaires Love Texas?
There are several reasons why billionaires flock to Texas, and many of them are related to the state’s financial advantages:
1. No Income Tax: Texas has no state income tax, which allows wealthy individuals to keep a larger portion of their income and investments. This tax advantage alone is a major draw for billionaires, especially those with significant earnings.
2. Business-Friendly Environment: Texas is known for being business-friendly, with a robust economy, low regulations, and a strong labor force. Many billionaires who own companies or invest in businesses prefer to live in Texas to be close to their operations.
3. Oil and Gas: Texas is rich in natural resources, particularly oil and gas. Many billionaires in the state have made their fortunes in this industry, and they continue to benefit from the state’s energy wealth.
4. Thriving Economy: Texas has one of the largest and most diverse economies in the United States. From tech to energy to entertainment, the state’s economic opportunities attract billionaires from various sectors.
5. Love for the State and Its Culture: Beyond the financial advantages, many billionaires who grew up in Texas choose to stay in the state for personal reasons. The state’s culture, lifestyle, and the warm weather are just a few of the factors that make Texas a desirable place to live.
The Wealthiest Texans According to Forbes
Forbes recently released its 2025 list of the world’s billionaires, and many Texans made the cut. Here are some of the richest Texans on the list:
1. Elon Musk
- Net Worth: $342 Billion
- Industry: Automotive/Tech
- Texas Connection: Musk is the founder of SpaceX, Tesla, and The Boring Company, all of which are headquartered in Texas. He also resides in the state.
2. Alice Walton
- Net Worth: $101 Billion
- Industry: Walmart Heiress
- Texas Connection: Walton lives in Fort Worth, where she is known for her philanthropic work, particularly her patronage of the arts.
3. Michael Dell
- Net Worth: $97.7 Billion
- Industry: Tech
- Texas Connection: Dell lives in Austin, where Dell Technologies is headquartered.
4. Harold Hamm
- Net Worth: $18.5 Billion
- Industry: Oil & Gas
- Texas Connection: Although Hamm is originally from Oklahoma, he has significant oil and gas operations in Texas, making him a key player in the state’s energy sector.
5. Jerry Jones
- Net Worth: $16.6 Billion
- Industry: Sports
- Texas Connection: Jones is the owner of the Dallas Cowboys and lives in Dallas.
6. Tilman Fertitta
- Net Worth: $11.3 Billion
- Industry: Entertainment, Food & Beverage
- Texas Connection: Fertitta owns the Houston Rockets, Golden Nugget Casinos, and several restaurant chains, with many operations based in Houston.
7. Andrew Bell
- Net Worth: $12 Billion
- Industry: Finance
- Texas Connection: Bell is the founder of Beal Bank, headquartered in Dallas.
8. Charles Butt
- Net Worth: $10.8 Billion
- Industry: Grocery
- Texas Connection: Butt is the owner of H-E-B, one of Texas’ most popular grocery chains, headquartered in San Antonio.
9. Richard Kinder
- Net Worth: $10.6 Billion
- Industry: Pipelines
- Texas Connection: Kinder is the co-founder and executive chairman of Kinder Morgan, a major energy company headquartered in Houston.
10. The Duncan Heirs
- Net Worth: $9 Billion each
- Industry: Pipelines
- Texas Connection: The Duncan family owns Enterprise Products Partners, which is based in Houston. The heirs include Randa, Dannine, Milane, and Scott.
Why Texas?
While financial reasons play a large part in why billionaires are drawn to Texas, the state’s vibrant culture, strong economic opportunities, and affordable cost of living compared to other major states like California or New York make it an even more attractive destination for the wealthy.
Additionally, business-friendly policies, no income tax, and a diverse economy make it an appealing place for billionaires looking to live comfortably while continuing to grow their fortunes.