New York’s loss is Florida’s gain.
The Sunshine State gained $20.6 billion in annual adjusted gross income from filers who moved there between 2022 and 2023, but states with the highest taxes like New York and California continued to bleed billions of dollars — even after the pandemic, according to newly released Internal Revenue Service data.
California saw an $11.9 billion loss in net income from 2022 to 2023 – the most of any state. Many of its residents moved to the cheaper confines of Texas, Nevada and Arizona, a Wall Street Journalanalysis of the IRS’s data on state income migration found.
Other big losers – all Democratic-led states with the highest taxes – included New York ($9.9 billion), Illinois ($6 billion), Massachusetts ($4 billion), New Jersey ($2.6 billion), Maryland ($1.8 billion) and Minnesota ($1.5 billion).
“People are moving in pursuit of affordability,” said Realtor.com senior economist Joel Berner.
“The states that saw the largest gains in wealth of movers are the ones that are doing the most to increase the supply of homes and thereby lower prices.”
States losing the most revenue through migration also share something else in common – they slam millionaires, billionaires and other high earners with hefty taxes while spending excessively. The vicious cycle typically leads to lefty pols calling for taxes to be raised even further and drives away businesses and jobs.
In New York City, residents earning over $215,400 pay a 10.7% while the top state-and-local tax rate runs 10.7%.
Socialist NYC Mayor Zohran Mamdani is trying to convince Gov. Kathy Hochul and other Albany pols to slap an additional 2% income tax surcharge on millionaires.
California millionaires pay a top rate of 13.3%, but the state’s 9.3% tax bracket starts at $72,724.
Minnesota’s top tax rate of 9.85% hits at $203,151 – making it the highest in the Midwest. It also imposes another 1% tax on investment income over $1 million.
Meanwhile, states without an income tax – with the exception of Alaska – saw huge gains from interstate migration, the Wall Street Journal reported.
Florida’s windfall was followed by Texas ($5.5 billion), South Carolina ($4.1 billion) and North Carolina ($3.9 billion), the data show.
Other big adjusted-gross-income gainers included Tennessee ($2.8 billion), Arizona ($2.8 billion) and Nevada ($1.5 billion).
New Hampshire gained nearly $900 million directly from Massachusetts, which in 2022 approved a 4% tax surcharge on millionaires that raised its top rate to 9%.
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