Low-Tax States Gain Residents From California and New York

IRS data show that low-tax states attract people and billions of dollars moving from high-tax states like California and New York.

hand truck with moving boxes on it for moving to low-tax states
(Image credit: Getty Images)

Given the economy, many people are looking to save money. Reducing taxes is one way to cut costs, and sometimes, moving from a high-tax state to a low-tax state can eliminate thousands of dollars in expenses year after year. After all, if $3,729 of your annual salary goes to state income tax, moving to a state that doesn’t tax income could potentially save you nearly $75,000 over 20 years.

That idea is supported by migration data, recently released by the IRS, showing that taxpayers are leaving notoriously high-tax states like California and New York and choosing to live in low-tax states. Tennessee, Texas, and Florida are among the most commonly moved-to states, and it just so happens that these states don’t tax income. According to the IRS data, the Carolinas, where property taxes are below the national average, are popular relocation spots.  

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Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.