Take one look at income tax rates in New York—and the median cost of a one-bedroom apartment with no natural light—and it’s no wonder why people who can afford to are flocking elsewhere.
With no state income tax at all, Florida and Texas are the No. 1 and No. 2 destinations for high-earning millennials on the move, according to a report from SmartAsset. Using data from the IRS and the 2021 tax year, SmartAsset measured net migration patterns (the inflow of new high earners minus the outflow) among young professionals ages 26 to 35 bringing in at least $200,000 a year. Florida gained a net 2,175 people in this cohort; Texas gained a net 1,909.
Meanwhile, the nation’s biggest economies, New York and California, withstood the biggest net losses at 5,062 and 4,495 young high earners, respectively. But they aren’t exactly desperate for young blood, as the two states are still home to the most young high earners by a vast margin.