High-earning American households are saying farewell to California and New York and relocating to Florida and Texas, according to a new study from SmartAsset.
For this study, SmartAsset examined the inflow and outflow of tax filers making at least $200,000 in each state between 2020 and 2021. There were 8.68 million tax returns indicating annual earnings exceeding $200,000 in 2021, up from 8.57 million returns just a year earlier. Needless to say, the population loss of these households can have a significant impact on a state’s tax base and finances.
SmartAsset found Florida led the nation in welcoming high-earners, adding 27,500 well-paid new residents during this period, with Texas coming in second with 9,000. Meanwhile, California and New York lost more than 45,000 and 31,000 high-earners, respectively – more than any other states.
Regionally, the Northeastern states lost the most high earners year-over-year, while seven of the top 20 states adding high-earners were in the Southeast. On a percentage basis, the greatest exodus occurred in Washington, D.C. – a net total of 2,009 high-earning households moving out between 2020 and 2021.
“It’s impossible to overlook the role of state income tax on these trends,” said Jaclyn DeJohn, managing editor of economic analysis for SmartAsset. “Four of the 10 states with the largest net influxes of high earners in 2021 do not levy a state income tax. Meanwhile, New Hampshire, which had the 11th largest net inflow of taxpayers earning $200,000 or more, does not tax earned income but taxes interest and dividends.”
It’s not just the taxes they are escaping, it’s the ridiculous laws and mandates the liberal left in office keep passing. Let’s hope they don’t move to these conservative states and vote liberal – that will just mean they will get more of the same.
Yeah, let’s blame the liberal left. Somehow someone is always ready to politicize everything. Failed migration laws? Bidens fault! Even though it’s Congress who has to change these laws. And we all know the clown car that’s running the GOP Congress these days. Give it a rest. Oh, and now that Texas is burning up and the ocean temp off Miami is 100 degrees, let’s see how long the new southern residents last down there. Especially after the upcoming hurricane season. Of course climate change is just a “Chinese hoax”, isn’t it?
What’s the matter Tom, does the truth hurt? Liberals and their ideals destroy everything they touch or manage. Kim stated FACTS- people are leaving liberal cities and states in droves, eager to get to republican run states and cities. Trump was right- look at every democrat run city- they are literally ****holes.
The people leaving city’s should know that its no different than if too many come illegally to this country having a very negative impact. At some point you have to fix your own country. Same applies. You have to fix your city’s messes. Florida is becoming worse. Florida does not have the same paying jobs or infrastructure. It is insane how many are coming here and the prices are so high that anyone that works here wont be able to live here. Especially their kids. Low-grade housing selling for 500k plus. New housing is not being made well. Combine that with a generation of college debt students that did not learn how to build anything.
Yes it is hot in Texas during the summer months BUT we all have air conditioning plus if you are away from the Gulf – low humidity! San Antonio and Austin have on-going developments,
Have you looked at property availability and prices in the less populated/dense areas of the US?
Those who can afford to, have been fleeing the city for generations– if not for summer or second homes, for vacations.
High density development, poor air quality, scorching concrete surfaces and scalding 160 degree artificial turf are just less livable/appealing to buyers.
Humans are not evolved to thrive in containers.
People who can afford a more supportive, enjoyable, healthy, less dense/less developed environment/ lifestyle buy it.
The desire for a better quality of life has increased property values in scenic less densely developed areas of Arizona, New Mexico, Colorado, Wyoming and more.
The developers themselves bought homes there years ago 😉