Meta Platforms CEO Mark Zuckerberg will be paying out tens of millions of dollars in taxes in the coming years due to large dividend payments from his holdings in the company formerly known as Facebook. Though the amounts represent only a small portion of Zuckerberg’s massive net worth, estimated at around $70 billion, the payouts provide a rare look into the finances of one of tech’s most private billionaires.
Securities filings show that Zuckerberg owns over 350 million shares of Meta stock. While he draws an annual salary of just $1 as CEO, his real income comes from periodic dividends paid out by the company. In September, Meta declared a quarterly dividend of $0.38 per share, totaling approximately $133 million for Zuckerberg’s stake alone.
But unlike the normal 37% top tax rate most Americans pay on dividend income, Zuckerberg may only have to pay 20% due to an obscure IRS rule. This preferential “qualified dividend” rate is meant to encourage long-term investment. By meeting a 61-day holding period requirement prior to the dividend payout, shareholders like Zuckerberg can qualify for the reduced tax.
This means the tech billionaire could save over $23 million on his latest Meta dividend payment thanks to the special tax treatment. Critics argue the “qualified dividend” loophole disproportionately benefits the ultra-wealthy, allowing moguls like Zuckerberg to amass even larger fortunes. But for now, the Facebook founder appears to be reaping the rewards of his early investment in the social media giant he created back in 2004.
