How much can corporations save by moving from Los Angeles, CA to Phoenix, AZ? 3.99 percentage points on their state corporate income taxes. That’s exactly what KB Home, one of America’s largest builders, is doing now. KB Home announced a new corporate headquarters in Phoenix, writing:
Beginning in spring 2027, KB Home will establish its new headquarters in Tempe, Arizona, bringing executive leadership and key corporate functions together in a more central location that will lower the company’s cost structure over time. The Phoenix metro area has a business-friendly operating environment that is expected to further enhance efficiency and support long-term profitability.
“This move brings our teams together in a more collaborative environment, and Phoenix is the right place to do it,” said Robert McGibney, president and chief executive officer of KB Home. “It positions KB Home to operate more effectively and supports the next phase of our growth.”
The new headquarters will be located at Hayden Ferry Lakeside in Tempe and offers convenient access to major transportation, including Phoenix Sky Harbor International Airport. This location builds on KB Home’s existing operational foundation, including key corporate functions and leadership currently based in Phoenix, and provides a more geographically central and accessible base within the company’s nationwide footprint.
KB Home will continue to maintain a significant presence in California through its six operating divisions. Over the years, the company has built tens of thousands of homes across the state and remains deeply committed to serving California homebuyers, with more than 100 communities currently open statewide.
Read this line again: “The Phoenix metro area has a business-friendly operating environment that is expected to further enhance efficiency and support long-term profitability.” That’s the meat and potatoes of the move. KB Home is looking to support its long-term profitability, and California isn’t the place to do that with an 8.89% corporate net income tax rate. Arizona, on the other hand, has a flat corporate rate of only 4.9%. That’s a 3.99 percentage point difference. In 2025, that could have saved KB Home $17 million, according to The Daily Mail’s Eliot Force.
Action Line: Businesses and individuals are looking at an increasingly mobile world and wondering which state best suits them. The big blue blob states that have taken for granted that people and businesses would want to live there, but increasingly Americans are fleeing from the high taxes and burdensome regulations that limit them in places like California and New York. If you’re looking for a better America, begin your search with Your Survival Guy’s 2026 Super States. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.