Why Are People Leaving California and New York?

Do taxes affect where people move? Here's what the latest data shows. From 2022 to 2023, the IRS tracked where taxpayers and their paychecks moved across the country. And the pattern is pretty clear. California lost about 100,000 taxpayers in one year. New York lost nearly 72,000. And New Jersey, Illinois, and Massachusetts also saw major outflows. And it wasn't just people leaving. California lost nearly 12 billion in income. and New York lost nearly 10 billion. So where did all this money go? — States with lower taxes like Florida gained 20. 6 billion in income. Texas picked up more than 56,000 new filers. Much of the country is shifting toward the sunb belt. Now here's the interesting part. It's often higher earners doing the moving. For every new resident, Florida gained about 185,000 in income. When someone who earns a lot leaves a state, the state loses way more than just that one taxpayer. Now, here's an honest caveat. Taxes aren't the whole story. They only explain a part of why people move. People move for jobs, houses, weather, family. So, taxes are only a part of the reason. South Carolina, for example, gain the most people per capita despite being a middle-of the road tax state. So, taxes aren't the only reason that people pack up, but they are a real factor that states have in their control.