Wealthy Residents Flee High Taxes in California and New York for Lower Costs in Florida and Texas
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High-income earners are leaving major cities like New York, San Francisco, and Los Angeles in large numbers and moving to states like Florida, Texas, and Arizona which offer lower taxes and cost of living.
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Florida gained the most in net income migration - over $68 billion between 2020-2021 - attracting wealthy residents with its financial landscape and debtor protections.
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California, New York and Illinois experienced significant outflows of high earners due to high taxes and living costs, with California losing $343.2 million.
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Popular destination states include South Carolina, North Carolina, Tennessee, Arizona and Florida due to affordable housing, outdoor recreation, and reasonable cost of living.
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Financial advisers can provide tailored guidance to high-income earners considering a move, helping them optimize tax benefits and make informed relocation decisions.