The wealthy are packing up and leaving certain states faster than ever before. Think about it. If you had the freedom to live anywhere and the money to make it happen, wouldn’t you choose a place that actually values keeping you there? Between 2021 and 2022, Florida gained 29,771 affluent taxpayers with $200,000 or more in adjusted gross income while California lost 24,670 of them, according to Tax Foundation analysis of IRS data. That’s not just a number. That’s billions of dollars in tax revenue, business activity, and economic potential walking out the door. Let’s be real, the states losing millionaires share something in common: they’ve made it increasingly expensive and complicated to stay wealthy there.
California: The Golden State Loses Its Luster
Tens of thousands more people with higher incomes and better education are leaving California than those coming in, reversing a historical trend, according to the LA Times’ economics reporting from 2024. California’s top state tax rate reached 13.3 percent for the wealthiest residents, and the top 1 percent of tax filers account for 40 to 45 percent of all personal income tax revenue.
The richest Californians leaving for Wyoming had an average adjusted gross income of $284,133, while Florida and New Hampshire also attracted high-earning households. When estate planning attorneys report two to five clients monthly saying they’re leaving because of tax burdens, you know something fundamental has shifted.
New York: Empire State’s Wealthy Exodus
New York lost $14.1 billion in adjusted gross income to other states during this period, representing a staggering economic blow. In 2021, New York state increased its top tax rate from 8.82 percent to three additional tiers ranging from 9.65 percent to 10.9 percent.
While New York received over 5,000 young, rich new residents, it saw a greater number leave, giving it a negative net migration according to SmartAsset analysis. The trend affects all age groups, though the departure of youn,,g wealthy professionals particularly stings because they represent future tax revenue and entrepreneurial energy.
Illinois: The Prairie State’s Wealth Drain
Illinois experienced a net loss of 45,460 tax filers to interstate migration, making it one of the biggest losers nationwide. Chicago’s reputation as a financial hub doesn’t seem to matter when people can work remotely from sunnier, cheaper places.
The state lost $9.8 billion in adjusted gross income between 2021 and 2022, according to Tax Foundation data. This wealth drain creates a vicious cycle where the state needs to maintain or raise taxes to fund services, which in turn encourages more wealthy residents to leave.
Honestly, it’s hard to blame them. States like Illinois and Massachusetts rank among the biggest losers, while states with lower taxes like North Carolina and Arizona are among the biggest winners in commercial moving data. The pattern couldn’t be clearer if someone painted it on a billboard.
New Jersey: Garden State Grows Thorns
New Jersey lost 20,820 tax filers on net to interstate migration. For a relatively small state, that’s a massive hemorrhage of wealth and talent.
Among taxpayers with $200,000 or more in adjusted gross income, New Jersey was among the least attractive states, and states losing higher-income taxpayers like New Jersey have highly progressive tax codes under which tax liability rises steeply with income. The proximity to New York City once made New Jersey an attractive suburban alternative, but that advantage evaporates when remote work eliminates the commute.
Massachusetts: Bay State’s Millionaire Problem
Massachusetts lost $3.9 billion in adjusted gross income to interstate migration. In 2023, Massachusetts implemented the controversial millionaire’s tax, officially known as the Fair Share Amendment, which added a four percent surtax on income over one million dollars.
Among taxpayers earning $200,000 or more, Massachusetts was among the least attractive destinations. The state gambled that its quality of life, educational institutions, and job market would keep millionaires around despite higher taxes. Early data suggests that the bet may not be paying off.
Connecticut: The Nutmeg State Cracks
Connecticut faces a similar wealth migration challenge as its neighbors. Connecticut has an expensive housing market.
Other high-tax states like Connecticut still have among the highest proportions of millionaires in their populations, but maintaining that status grows harder each year. The state’s small size means every wealthy household that leaves has an outsized impact on tax revenue.
When you combine high property taxes, high income taxes, and the expensive cost of living with the freedom to work remotely, Connecticut’s value proposition weakens considerably. The state has beautiful scenery and proximity to New York, yet that’s apparently not enough to overcome the financial burden for many wealthy residents.
Maryland: Old Line State’s New Problem
Maryland ranks among high-tax states with a high proportion of millionaires in its population, but that demographic advantage is under threat. The state’s proximity to Washington, D.C, has historically been an asset, drawing government contractors and professionals.
However, the same remote work revolution that hurt other high-tax states is affecting Maryland, too. Why pay Maryland’s elevated tax rates when you can keep your federal government contract and live in Florida or Texas? The state’s wealthy residents are increasingly asking themselves that question.
Maryland’s challenge mirrors the broader pattern: states that built their economies around geographic proximity to opportunity are discovering that proximity matters less in a digital economy. The state needs to offer more than just location to keep its millionaires from quietly loading up moving trucks.
The migration patterns are crystal clear. Zero-income tax Florida and Texas, and other low-tax states, have benefited from tax-related migration, and all income groups tend to move from high-tax to low-tax states, though this pattern is especially true of those making $200,000 or more annually. We’re witnessing a fundamental reshuffling of American wealth, and the states losing out share a common thread of high taxes, high costs, and increasingly questionable value for money. What do you think drives these decisions more: taxes or quality of life?