Over the past decade, New York and New Jersey have experienced significant financial setbacks as thousands of residents relocate to states with lower taxes. From 2013 to 2022, New York alone saw more than half a trillion dollars in resident income move out of the state, while New Jersey lost over $170 billion during the same period.

This trend is part of a larger nationwide shift where people are choosing to settle in states with more favorable tax policies. Florida and Texas, for example, have attracted large numbers of newcomers, resulting in substantial income gains — Florida’s resident income increased by over $1 trillion, and Texas gained nearly $300 billion.

Data gathered from IRS tax returns and census reports highlights this growing migration pattern, revealing that New York lost roughly 1.75 million residents domestically over the last ten years, with California and Illinois also seeing significant population declines. Meanwhile, Florida and Texas have been major beneficiaries, each welcoming over a million new residents.

Experts suggest that these moves are largely motivated by the financial impact of state and local taxes, as well as overall cost of living concerns. The outflow of residents and their income poses challenges for high-tax states, potentially straining public services and economic growth due to the shrinking tax base.

As this trend continues, policymakers in affected states may need to reconsider their tax structures and economic strategies to retain residents and maintain fiscal health.

Source: Fox Business: New York and New Jersey lose hundreds of billions in resident income as Americans flee low-tax states