The 6 U.S. States Seeing the Biggest High-Earner Exodus in 2025

Something strange is happening across America. The people who can afford to live anywhere are choosing to leave some of our most iconic states behind. High-income earners are continuing to leave high-tax states to low-tax states and the trend is expected to continue. Think about it: wealthy residents with complete freedom to choose their home base are packing up and heading elsewhere. The question isn’t just where they’re going, but what they’re running from.

1. California: The Golden State Loses Its Shine

California lost 24,670 affluent taxpayers with $200,000 or more in AGI, marking one of the most significant wealth departures in the nation. Here’s the thing: it’s not just about numbers. High-income earners who leave California show a preference for low-tax states, and when you consider that California has the highest state income tax rate in the nation, topping out at 13.3%, it starts to make sense. The median home price hitting astronomical levels doesn’t help either.

California saw the largest amount of wealth out-migration, losing $24 billion in AGI. It’s a cycle that feeds itself: as these earners leave, they take their tax contributions with them. California residents have long endured some of the highest tax rates in the United States, with higher taxes reducing overall income and high property taxes further encouraging residents to look elsewhere. The top destinations are Texas, Arizona, Nevada, Florida, and Idaho, chosen for their lower cost of living, job opportunities, and lower tax burdens.

2. New York: The Empire State’s Wealth Drain

New York tells a complicated story. 15,552 high-income earners making over $201k left the city between mid-2024 and late 2025, according to moving data tracking millions of relocations. New York lost 121,000 people to interstate migration in 2024, with the combination of soaring living costs and layered taxation proving too much for many. The state is now losing residents at an alarming pace.

New York saw wealth out-migration totaling $14 billion in AGI. What’s striking is where they’re headed. Florida claims the top destination spot, welcoming 16.68% of all New York City residents who left, with the appeal being no state income tax, lower cost of living, and warm weather. The financial services sector alone lost 8,400 jobs between January and August 2024, showing the business impact extends beyond individual moves. Honestly, when the city that never sleeps starts losing its wealthiest dreamers, something’s fundamentally shifted.

3. New Jersey: The Garden State’s Tax Trap

New Jersey has the highest property taxes in the nation, with the average homeowner paying over $10,000 a year, combined with a top income tax rate of 10.75% and an inheritance tax. Let’s be real: that’s a tough sell for anyone trying to build or preserve wealth. New Jersey saw 70.5% of its moves in 2021 being outbound, with high taxes and steep cost of living as primary culprits.

The state is experiencing a “gray exodus,” with nearly a quarter of people leaving for their golden years, and over 40% of movers leaving New Jersey are 65 or older. These retirees are cashing out their home equity and heading to warmer, lower-tax states like Florida. New Jersey is among the states losing higher-income taxpayers, with highly progressive tax codes under which tax liability rises steeply with income. The combination creates a perfect storm pushing wealth out the door.

4. Illinois: Decades of Decline

Illinois has been a fixture on outbound lists for years, with the U.S. Census Bureau confirming a net loss of over 56,000 residents to other states. This isn’t a new trend, but it’s accelerating. Illinois ranks seventh highest in the nation for combined state and local tax burden, with residents paying over 10% of their income in taxes, featuring a complex seven-bracket income tax system, high property taxes, and an estate and gift tax.

Illinois lost 0.44 percent of its residents to other states in the most recent Census data. Among taxpayers with $200,000 or more in AGI, Illinois was among the least attractive states. The state’s job growth has been minimal, and the unemployment rate has been ticking up, making it harder to justify staying despite deep roots or family ties. I know it sounds harsh, but when you layer economic stagnation on top of heavy taxation, high earners start calculating their exits.

5. Massachusetts: Taxing Success

The cost of living is 44% higher than the national average, with housing costing 106% more than the U.S. average and the median single-family home price hitting $600,000 in early 2025. In Boston, the average apartment rent is nearly $3,200, making it one of the priciest rental markets in the country.

The state has a complex tax system, including a “millionaire’s tax” that pushes the top income tax rate to 9% for high earners, creating what many view as a burdensome tax environment. Massachusetts is described as having “insane” policies and taxes that are too high, with state and local income tax rates two to three times higher than in most other states. Massachusetts was among the least attractive states for taxpayers with $200,000 or more in AGI. When you’re paying premium prices for everything and getting hit with aggressive taxation, the appeal of staying dims quickly.

6. Washington: The Unexpected Reversal

Here’s where it gets interesting. Once a haven for those fleeing California’s high prices, Washington is now seeing its own residents look elsewhere for relief, with multiple van lines placing Washington in their top five outbound states, with 52-56% of moves heading out. A 2024 SmartAsset study found Washington lost a net 222 high-earning millennial households with incomes over $200,000 between 2021 and 2022, and by mid-2025, wealthy Gen Z-ers were fleeing even faster.

High taxes, burdensome regulations, and an anti-business climate are pushing the wealthiest and high-earners to sunnier, lower-tax havens such as Nevada, Texas, and Florida. Tech executives from Microsoft and Amazon are moving to Las Vegas, drawn by zero state income or capital gains taxes. The state’s economy lost thousands of jobs in late summer 2025, with key sectors like professional and business services seeing significant job losses. The irony? Washington became a victim of its own success, with popularity driving up costs until even tech money couldn’t justify staying.

The exodus of high earners from these six states represents more than just individual moving decisions. It’s reshaping the economic landscape of America, redistributing wealth and tax revenue in ways that will echo for decades. These states face tough choices ahead: reform their tax structures and regulations, or watch their wealthiest residents continue heading for the exits. What would you do if your state kept raising taxes while your neighbors packed their bags? It’s worth thinking about.