SmartAsset set out to identify the states with the highest turnover of high-income households. To locate them, examined the inflow and outflow of taxpayers earning at least $200,000 in each state between 2019 and 2020.
Households earning more than $200,000 a year represent only a small portion of all tax returns filed in any given year, but its movement between states can have a significant financial impact.
When a state loses more high-income taxpayers than it gains in a given year, tax revenues may decrease and the state’s fiscal situation may worsen.
That is why, despite accounting for less than 7% of total tax returns filed in all 50 states and the District of Columbia in 2020the migration patterns of high-income households continue to be in the media spotlight.
SmartAsset analysis identified that Sun Belt states see the greatest amount of migration. Of the 10 states that have the largest influx of high-income households, 8 are at least partially located in the Sun Belt. That includes the top 6 states, starting with Florida.
SmartAsset points out that no state is gaining more high-income households than Florida. Despite losing 11,756 taxpayers who reported at least $200,000 in income in 2020, The Sunshine State added 32,019 high-income households that same year. That’s a net addition of 20,263 high-income taxpayers.
Like Florida, Second-ranked Texas has no state income taxes. Despite ranking second, the state’s net migration of high-income households was about a quarter of what Florida saw in 2020. Specifically, the Lone Star State added 18,417 taxpayers making at least $200,000 and lost 13,061 .
Next, the 10 states with the most number of high-income households aggregated:
1. Florida: with 20,263 families
two. Texas: 5,356
3. Arizona: 5,268
4. North Carolina: 4,713
5. South Carolina: 3,967
Not surprisingly, most of the states with the highest net loss of households earning more than $200,000 are traditionally considered high-tax states.
New York saw a net outflow of nearly 20,000 high-income households in 2020, more than any state in our study. While the Empire State gained 9,650 such homes, it lost 29,562 in the same year. California was not far behind, losing a net figure of 19,229 high-income filers.
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