As you might be aware, taxpayers are leaving States with double digit State income taxes like California, Hawaii, New Jersey, New York and the District of Columbia for more tax friendly States like Texas and Florida in 2023 as described in the Tax Foundation article.
Based on Wirepoints data, if we go back to 2020 data (pandemic year), we saw that there were the same winners Florida and Texas, so we can assume that the trend started there as remote work became more common in the workforce. Back in 2020, the losers of tax funds (as reported the Adjusted Gross Income in Wirepoints data) are California and New York.
We have seen a consistent trend over the last four years due to changes in the workforce and technology solutions since the pandemic. This domestic migration generates adjustment in the State budget as billions of dollars swing from States losing taxpayers to those increasing population.
If you were making $1m to $10m a year, would you consider moving to a more favorable State? You would be saving around 7%-10% effective rate in some cases (just food for thought).
Link Tax Foundation article – Americans Moved to Low-Tax States in 2023
Link The Maine Wire – Blue States Lost Billions In Revenue As Americans Fled To Texas And Florida
