While you may be annoyed about paying taxes, billionaire Mark Cuban says he’s happy to pay the $275.9 million he owes for 2023.
“I pay what I owe,” Cuban wrote on social media site X on Sunday. “This country has done so much for me, I’m proud to pay my taxes every single year.”
Cuban confirmed with CNBC Make It on Monday that his $275.9 million tax bill was “wired today.”
“We only get to be entrepreneurs and enjoy the freedoms we have because of the men and women who dedicate their lives to protecting our country,” he tells CNBC Make It. “They deserve every penny they get and my taxes go to support them.”
Cuban, who is also one of the stars on ABC’s “Shark Tank,” has an estimated net worth of $5.4 billion and says his tax bill is “almost all long term capital gains,” which almost certainly triggered a federal long-term capital gains tax of 20%.
Cuban declined to confirm which assets triggered capital gains taxes, or whether it was related to his partial $3.5 billion sale of the Dallas Mavericks, which was approved in December 2023.
Long-term capital gains taxes apply to the sale of assets held for more than a year before they are sold. Capital gains rates are based on total taxable income and are generally lower than ordinary income rates. Here are the 2023 long-term capital gains tax rates for a single filer:
- 0%: $0 to $44,625
- 15%: $44,626 to $492,300
- 20%: $492,301 or higher
Cuban might also owe additional taxes based on his personal income. He has confirmed in past years that he pays 37%, the top federal income tax rate for people who earn $578,126 or more.
The U.S. uses progressive income tax brackets, which charge gradually higher rates once a taxpayer’s income exceeds a bracket’s total. Here’s a breakdown of how it works for a single taxpayer for the 2023 tax year:
- Income of $11,000 or less: 10% of the taxable income
- $11,001 to $44,725: $1,100 plus 12% of amount over $11,000
- $44,726 to $95,375: $5,147 plus 22% of amount over $44,725
- $95,376 to $182,100: $16,290 plus 24% of amount over $95,375
- $182,101 to $231,250: $37,104 plus 32% of amount over $182,100
- $231,251 to $578,125: $52,832 plus 35% of amount over $231,250
- $578,126 or more: $174,238.25 plus 37% of amount over $578,125
For example, if Cuban was in the highest tax bracket and filing as a single payer, that means he would owe $174,238.25 plus 37% of any income he earned above the $578,125 threshold. (Cuban is married.)
Paying more than a quarter of a billion dollars is “crazy and unreal in so many ways,” Cuban wrote on X. “Never in my wildest dreams did I think I would be here. I try to never take it for granted.”
Cuban has been vocal about paying his taxes for years. By paying taxes, wealthy entrepreneurs like himself are “helping support millions of Americans that are not as fortunate as you,” he wrote in a 2011 blog post.
“Some people might find it distasteful to pay taxes,” Cuban wrote. “I don’t. I find it patriotic.”
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”
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