Blitz Bureau
NEW DELHI: The Internal Revenue Service (IRS) has released new data on how taxpayers are migrating throughout the United States, and it reveals a clear pattern: Billions of dollars in income are flowing out of high-tax states and into areas where taxes, and often overall living costs, are lower.
The data, which reflects the adjusted gross income (AGI) of those who filed tax returns in 2023 for the 2022 tax year, shows that California saw the highest outflows, losing $11.9 billion in AGI as residents moved away. Other states with big losses were New York ($9.9 billion), Illinois ($6 billion), Massachusetts ($4 billion) and New Jersey ($2.6 billion). Much of that lost income is tied to higher-earning households.
Florida topped the list of states recording big increases, with a gain of $20.6 billion in AGI. Other states collecting large gains in AGI were Texas ($5.5 billion), South Carolina ($4.1 billion), North Carolina ($3.9 billion) and Tennessee ($2.8 billion). Several of the states with gains, including Florida, Texas and Tennessee, have no state income tax. Others offer relatively low, flat tax rates and more-affordable housing markets.
