Boston Real Estate Investors Association

Shocker – Americans Moving to Low-Tax States

Shocker – Americans Moving to Low-Tax States

The Tax Foundation is reporting that American were on the move in 2022 and they, hold on to your hat, chose low-tax states over high-tax ones.  To come up with their findings they crunched data from the U.S. Census Bureau population data and commercial datasets released in early January.

Interestingly, they say that moving data from U-Haul and United Van Lines (recently posted on this site), while less robust and undoubtedly influenced by their geographic coverage, speaks more directly to cross-border migration and is confirmatory. The Tax Foundation says both companies show states like California, Illinois, Massachusetts, and New York as the biggest losers, while states like Texas, Florida, and Tennessee are among the largest net gainers.  Indeed…

“Six states in the top third forgo taxes on wage income (Florida, Texas, South Dakota, Tennessee, and Nevada, as well as Washington, which taxes capital gains income but not wage income), and the highest top rate in that cohort is Maine’s 7.15 percent.”

“Among the bottom third, five jurisdictions—California, Hawaii, New Jersey, New York, and Oregon—have double-digit income tax rates, and—excepting Alaska, with no income tax—the lowest rate is in Pennsylvania, where a low state rate of 3.07 percent is paired with some of the highest local income tax rates in the country. Six states in the bottom third have local income taxes; only one in the top third does.”

2022 State Population Change 2022 state migration trends. Americans moving to low-tax states united van lines u-haul census data

Click here to read the full report at the Tax Foundation.

 

The post Shocker – Americans Moving to Low-Tax States appeared first on Real Estate Investing Today.

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