In recent years, IRS migration data and financial studies have revealed a steady exodus of millionaires and high-income earners from several U.S. states. Rising taxes, skyrocketing living costs, and evolving remote-work trends have encouraged many to relocate to more tax-friendly, affordable destinations. Although not an outright escape, this gradual shift is reshaping state economies, tax bases, and even political influence. Here’s a closer look at the eight states seeing the biggest millionaire outflows.
1. California
California continues to lead the nation in millionaire departures, with IRS data showing that over 24,670 households earning above $200,000 left the state in 2022 alone. Sky-high property prices, combined with a 13.3% top state income tax, have made even the Golden State’s luxury havens less appealing. Cities like Los Angeles and San Francisco saw significant population dips, particularly among tech and entertainment elites. Many are relocating to Nevada and Texas, where tax burdens are minimal and real-estate opportunities more attractive.
2. New York
New York has long been synonymous with wealth, yet it lost nearly 12,040 high-earning households according to IRS records. The 10.9% top state tax rate and rising living expenses in Manhattan and surrounding counties have driven residents to sunnier states like Florida, which has no state income tax. A 2024 analysis estimated that more than $14 billion in taxable income left New York City between 2021 and 2023. While Wall Street’s financial elite still dominate, remote work has made it easier for millionaires to move without sacrificing income.
3. Illinois
Once a powerhouse for business and industry, Illinois particularly Chicago is losing its wealthiest residents at a concerning pace. The state saw an estimated 9,292 households earning above $200,000 depart, many citing the 4.95% flat income tax and high property taxes that average 2.07%. In addition, crime concerns and the state’s mounting pension debt have pushed affluent families toward Florida, Texas, and Tennessee. IRS migration data shows that between 2020 and 2023, Illinois lost over $10 billion in adjusted gross income, underscoring a clear fiscal impact.
4. Massachusetts
Massachusetts, known for its elite universities and biotech innovation, has struggled to retain its upper-income population. The Bay State saw around 4,392 high-earning households move out recently, following the introduction of a 4% millionaire’s tax in 2023. That change pushed some taxpayers’ marginal rates above 9%, sparking a notable migration toward New Hampshire and Florida. Boston’s high cost of living, where median home prices exceed $760,000, further contributes to the trend. While Massachusetts remains economically strong, the loss of high earners could challenge future revenue stability.
5. New Jersey
Despite its proximity to major financial hubs, New Jersey recorded a net loss of roughly 3,863 millionaire-class households, according to SmartAsset’s IRS-based study. With a 10.75% top state tax rate, among the highest in the U.S., and property taxes averaging 2.49%, many residents are crossing state lines to Pennsylvania or heading south to Florida. Wealth migration has cost New Jersey an estimated $5.3 billion in annual adjusted gross income. The state’s policymakers have debated tax reform, but so far, incentives haven’t fully stemmed the millionaire drain.
6. Pennsylvania
Pennsylvania may not top the list of high-tax states, but it still experienced an outflow of 2,417 households earning above $200,000. While the state’s 3.07% flat tax is moderate, the burden of local taxes and high urban living costs, particularly in Philadelphia and Pittsburgh have pushed some affluent professionals elsewhere. Between 2020 and 2023, the state lost over $2.8 billion in adjusted income, according to IRS figures. Many of these out-migrants are retirees or executives seeking tax advantages and warmer climates in Florida and North Carolina.
7. Maryland
Maryland’s millionaire population has long been substantial, yet the state saw a net loss of about 2,375 wealthy households, data show. The 5.75% top income tax, plus local “piggyback” taxes that raise effective rates closer to 8.9%, have played a major role. Suburban areas like Montgomery and Howard Counties, once prime real-estate zones for Washington D.C. commuters, are seeing movement toward Virginia and Delaware. Between 2021 and 2023, Maryland’s lost income exceeded $3.1 billion, a trend that could affect future infrastructure and education funding.
8. Virginia
Virginia, historically stable and economically diverse, has joined the list of states losing high-earning residents. Around 2,375 households earning over $200,000 relocated, citing the 5.75% top state tax and soaring living expenses in Northern Virginia. As remote work spreads, many tech and defense contractors have shifted to lower-tax regions such as Tennessee and Florida. The state’s IRS data indicates an outflow of approximately $2.4 billion in adjusted gross income since 2020. While the losses remain modest, analysts warn of growing competitive pressure from neighboring states with lighter tax policies.
