The migration of high-income earners in the United States has led to significant shifts in the economic landscape. In recent years, particularly during the pandemic, there has been a substantial exodus of high earners from major cities, with IRS data showing that large urban counties lost over $68 billion in taxable income from net migration between 2020 and 2021. Large coastal cities like Manhattan, New York, San Francisco and Los Angeles experienced particularly large flights of income.
This trend is reflected in the destinations chosen by these high earners, with many relocating to states like Florida, Texas and Arizona. Florida leads the nation in net income migration, attracting high-income earners with its financial landscape and debtor protections. Texas follows with a $10.7 billion net gain, and Arizona boasts a $9.4 billion net gain, both offering favorable tax structures and thriving business environments.
On the other hand, California, New York and Illinois are seeing significant outflows of high-income earners because of high personal income tax rates and cost of living, with California experiencing a net loss of $343.2 million.
The most moved-to states in 2023 included South Carolina, North Carolina, Tennessee, Arizona and Florida, with cities like Tucson, Arizona; Charleston, South Carolina; Charlotte, North Carolina; Nashville, Tennessee; and Raleigh, North Carolina being particularly attractive because of their low cost of living, reasonable housing prices and access to outdoor recreational opportunities. South Carolina was the most popular state to move to in 2023, experiencing twice as many moves into the state as people leaving.
High-income earners considering a move can benefit from consulting a local financial adviser. Financial advisers can provide tailored guidance on managing wealth, optimizing tax benefits and making informed financial decisions in the context of their relocation.
The trend of wealth migration also is becoming more pronounced, with wealth gravitating toward regions like Florida and Texas with more accommodating tax policies. The shift is driven by the absence of personal income tax in these states and by factors like lifestyle preferences and business opportunities. The economic implications of this wealth migration are profound and far-reaching, affecting various sectors including commercial real estate and job markets.
The migration trends offer a clear view of how economic and fiscal policies at the state level significantly influence wealth distribution across the U.S. The departure of high-income earners from states like California, New York and Illinois, and their influx into states like Florida, Texas and Arizona, underscores the impact of state tax policies and cost of living on migration decisions.
Are you rich? Here’s what Americans think you need to be considered wealthy.
*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.
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Wealthy people are moving to states including Florida, Texas, North Carolina, and Tennessee. They've been wooed by the same things less wealthy movers seek: space, weather, and lower taxes. This pattern is driving up home prices in Miami, in particular, even for the highest earners.
He counters the popular media view that such decisions are an attempt to avoid taxes and reasons that the far more prevalent reason is investors seeking “investment and business growth, safer destinations to raise their families, or second passport and alternate residence opportunities that afford everything from ...
Rising housing costs, rising taxes and politics seem to be driving many people to look for opportunities elsewhere. Other factors that emigrants have cited are the rising threat of wildfires and the constantly increasing cost of living. Many families from the state are relocating to Texas.
The average dual-income household brings in $125,841 per year—only 26.05% more than the minimum for basic costs, leaving Hawaiians a slim margin to work with. Housing is one of the largest expenses in Hawaii, second only to California.
If anything, the report notes that rather than fleeing the country completely, millionaires and other wealthy people are migrating to different cities within the U.S., with the likes of Austin, Miami, and Scottsdale seeing the largest growth in the millionaire population over the past decade (that said, New York still ...
“When millionaires do migrate, they are more likely to move to a state with a lower tax rate, and that state is almost always Florida,” Young said. There are nine states without a state income tax, but only Florida disproportionally attracts millionaires from higher tax states, Young said.
An estimated 128,000 millionaires are forecast to move to a new country this year, up from 120,000 in 2023 and up from 51,000 in 2013, according to Henley.
From crippling diseases, to wagon accidents, dangerous weather, wild creatures, and attacks by Native Americans, life was very difficult on the journey west.
There were many factors, but for most men and women, the West represented opportunity. Many simply sought a better life, tantalized by the availability of cheap land. Most Americans lived an agrarian lifestyle that required land for farming or raising livestock.
In the first eight months of FY 2023, refugees' top initial resettlement destinations were Texas (approximately 10 percent, or 3,100 individuals), New York (6 percent, or 2,000 refugees), California (6 percent, or 1,800 individuals), Kentucky (5 percent, or 1,600), and Pennsylvania (5 percent, or 1,500).
Over the past 10 years, the states that have received the most refugees have been Texas (44,000), California (40,000), New York (27,000), and Michigan (23,000).
Florida, North Carolina, Arizona, South Carolina and Tennessee are the five states where the most Americans looking to move to another city wish to relocate, according to a recent report by real estate platform Redfin.
Florida and Texas are the top two states that people are moving to. U.S. Census data showed that of all the U.S. states, Florida and Texas were the top two states people were moving to.
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