Florida, Texas Draw $26 Billion in Income as California, New York Lose Residents
Updated
Updated · Fox News · May 20
Florida, Texas Draw $26 Billion in Income as California, New York Lose Residents
4 articles · Updated · Fox News · May 20
IRS data for 2022-2023 show Florida and Texas led inbound migration, adding more than 56,000 residents and 55,000 income tax filers while pulling in about $20.6 billion and $5.5 billion in taxable income.
Affordability pressures and lower-tax, lower-cost living are driving the shift, with Tax Foundation analyst Nicole Fox saying states with net in-migration tend to have more competitive tax structures.
South Carolina posted the biggest population-adjusted gain at 1.12%, with more than 29,000 incoming households bringing roughly $4.1 billion in taxable income; North Carolina, Tennessee and Arizona also ranked among top destinations.
California recorded the largest outbound losses, with more than 100,000 filers and nearly $12 billion in taxable income leaving, while New York lost about 72,000 households and nearly $10 billion.
The migration is redirecting housing demand, labor pools, tax bases and congressional clout toward the South and Sun Belt ahead of the 2026 midterms.
Will the boom in low-tax states create the same high costs and tax hikes that new residents originally fled?
What are high-tax states losing besides people as their economic and cultural influence shifts to the Sun Belt?
How will the new $40,000 SALT deduction cap impact the migration of wealthy residents from high-tax states before 2029?
The Great American Migration Surge: Data, Drivers, and the Political-Economic Fallout (2020–2026)
Overview
As of May 2026, the United States is seeing a rapid internal migration, with more Americans moving from high-tax blue states to low-tax red states. This trend, confirmed by recent Census Bureau data, is driven by people seeking better tax environments and more affordable housing. Many states are responding by adopting flat tax rates, making them even more attractive to movers. The shift is also influenced by an aging population, as Baby Boomers reach retirement age. These changes are having a major impact on state economies, housing markets, and the national political landscape.