10 States Millionaires Are Quietly Moving Away From, IRS Data Shows
According to recent IRS migration data, Florida gained nearly 30,000 affluent taxpayers with adjusted gross income of at least $200,000 between 2021 and 2022, while California lost almost 25,000 of them. The numbers paint a stark picture of wealth redistribution across America. Recent IRS migration data reveals a strong positive relationship between state tax competitiveness and net migration, with states featuring lower taxes and sound tax structures experiencing stronger inbound movement than those with higher taxes and more burdensome structures. Let’s be real here, the landscape of American wealth is shifting in ways that weren’t imaginable just a decade ago.
California
California lost approximately 24,670 high-earning taxpayers with adjusted gross income of $200,000 or more between 2021 and 2022. The Golden State has long been seen as the land of opportunity, where dreams come true and fortunes are made. Yet something fundamental has shifted beneath the surface.
California’s top income tax rate is 13.3% for those earning more than $1 million, the highest state income tax rate in the country. Between 2020 and 2021, there was a net loss of over 27,300 tax returns reporting an adjusted gross income of at least $200,000. These aren’t just numbers on a spreadsheet. They represent families, business owners, and entrepreneurs who decided enough was enough.
New York
Among taxpayers earning $200,000 or more, New York experienced a net outflow of 12,040 high-earners between 2021 and 2022, with those movers reporting an average adjusted gross income of $1.1 million. The Empire State has always prided itself on being the financial capital of the world, home to Wall Street and the most ambitious professionals.
Millionaire-reported address changes peaked in 2020 and slowly declined each subsequent year, with the rate of out-of-state address changes higher for millionaires, peaking above 6% in 2020 and now sitting slightly below 3%. From 2013 to 2022, New York lost $517.5 billion in resident incomes, according to Census Bureau and IRS data. Honestly, it’s hard to blame them when you consider the combination of taxes, cost of living, and quality of life factors.
Illinois
Illinois was among the least attractive states for taxpayers earning $200,000 or more, based on recent IRS migration data. Chicago, once a booming metropolis attracting ambitious professionals from across the country, is now watching its wealthiest residents quietly pack their bags.
According to a report from New World Wealth, Chicago experienced a net loss of millionaire households in 2015. Illinois lost $315.2 billion in resident income between 2013 and 2022, and lost a net 881,012 residents to domestic migration from the 2011-12 period through 2021-22. The Windy City’s struggles reflect broader challenges facing the entire state.
Massachusetts
Massachusetts ranked among the least attractive destinations for taxpayers earning $200,000 or more, according to IRS migration data analysis. Massachusetts lost $3.9 billion in adjusted gross income to interstate migration, and in 2023, the state implemented the controversial millionaire’s tax, adding a four percent surtax on income over one million dollars.
Among taxpayers earning $200,000 or more, Massachusetts was among the least attractive destinations, as the state gambled that its quality of life, educational institutions, and job market would keep millionaires around despite higher taxes, though early data suggests that bet may not be paying off. The combination of world-class universities and a thriving tech scene once seemed like enough to keep wealthy residents in place. Times have changed.
New Jersey
New Jersey ranked among the least attractive states for high-income taxpayers earning $200,000 or more, based on recent IRS data. The Garden State sits in an awkward position, caught between the gravitational pull of New York City and Philadelphia while struggling with some of the nation’s highest property taxes.
New Jersey experienced a high outbound migration rate of 68.5% in one recent year, with nearly half of all outbound migrations occurring at income levels of $150,000 or more. Between 2013 and 2022, New Jersey lost $170.1 billion in resident income, and lost a net 350,111 residents to domestic migration from the 2011-12 period through 2021-22. Here’s the thing: even wealthy people have their breaking point.
Connecticut
Connecticut faces a similar wealth migration challenge as its neighbors, with an expensive housing market, and while high-tax states like Connecticut still have among the highest proportions of millionaires in their populations, maintaining that status grows harder each year. The state has long benefited from proximity to New York City, serving as a bedroom community for financial executives and hedge fund managers.
The concentration of wealth in places like Greenwich and Fairfield County once seemed impervious to migration trends. Yet even Connecticut’s millionaires are reconsidering their options as remote work opportunities expand and tax burdens mount. The 2020 pandemic fundamentally changed what it means to live near but not in a major metropolitan area.
Maryland
Maryland finds itself in an increasingly uncomfortable position, squeezed between the tax policies of its neighbors and the cost of living in the Baltimore-Washington corridor. The state has historically attracted wealthy government contractors and professionals working in the nation’s capital.
Recent migration patterns suggest that even Maryland’s strategic location isn’t enough to overcome broader regional trends. Affluent residents are discovering they can maintain business connections virtually while enjoying lower tax rates and reduced living costs elsewhere. The calculation that once favored staying put is being reassessed by thousands of high-net-worth households.
Minnesota
Minnesota has built a reputation for quality of life that extends far beyond its harsh winters. The Twin Cities area offers cultural amenities, strong schools, and a thriving economy that once made high taxes seem like a reasonable trade-off.
Still, the state is not immune to the same forces driving wealthy residents out of other high-tax jurisdictions. As remote work becomes normalized and younger millionaires prioritize tax efficiency, Minnesota faces growing competition from states that offer similar quality of life without the same fiscal burden. The Land of 10,000 Lakes may need to rethink its value proposition.
Oregon
Oregon’s appeal has always been about lifestyle rather than tax efficiency. Portland’s creative culture, access to outdoor recreation, and progressive values attracted wealthy individuals who could afford to prioritize quality of life over financial optimization.
Recent years have tested that equation. As housing costs have soared and urban challenges have mounted, even Oregon’s most devoted residents are reconsidering. The state’s progressive tax structure, while ideologically aligned with many residents’ values, becomes harder to justify when neighboring Washington offers similar geography without state income tax. The border between these states represents one of the starkest tax divides in America.
Rhode Island
The Ocean State’s small size has always been both a strength and a vulnerability. Rhode Island offers New England charm, coastal beauty, and proximity to Boston, yet it struggles to compete with larger neighbors that offer more diverse economic opportunities.
Wealthy residents are increasingly finding Rhode Island’s combination of high taxes and limited economic dynamism difficult to justify. The state’s efforts to retain and attract high-net-worth individuals face challenges from more aggressive competitors offering superior tax treatment. For a state heavily dependent on a small number of wealthy taxpayers, each departure carries outsize fiscal implications. The migration patterns reveal a state at a crossroads, needing to fundamentally reassess its competitive position in an increasingly mobile era.
The wealth migration reshaping America isn’t just about taxes, though they certainly matter. It reflects a fundamental reassessment of value in an era when geography matters less than it used to. What do you think is driving these millionaires away from their longtime homes?
