Where Wealthy Americans Are Moving in 2026: IRS Migration Data

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IRS migration data shows high-income households are leaving California, New York, and Illinois at an accelerating pace. Florida, Texas, and South Carolina are absorbing billions in adjusted gross income annually. The pattern is not random — it follows state income tax rates almost exactly.

High-income households moved an estimated $120 billion in adjusted gross income out of California, New York, and Illinois combined over the most recent IRS filing period. The destinations are not surprising. The speed is.

The States Winning the Wealth Transfer

Florida remains the undisputed leader. IRS Statistics of Income migration data (as of late 2025, the most recent release) shows Florida gaining more than $36 billion in net AGI inflow annually, with filers reporting average incomes well above the national median. That is not retirees moving for the weather. The average incoming Florida filer from New York or California earns over $180,000 per year.

Texas runs second. The state absorbed roughly $28 billion in net AGI inflow in the same period, with migration concentrated in Austin, Dallas, and the Houston suburbs. South Carolina cracked the top five for the first time, pulling high-income arrivals from the Northeast who want Florida-level tax treatment at a lower cost of living.

Nevada and Tennessee round out the top five. Both have zero state income tax. Both are seeing inbound migration from filers with AGI above $500,000 at rates that would have seemed implausible a decade ago.

The States Losing the Most

California lost an estimated $23 billion in net AGI outflow in the most recent IRS data period. Its top marginal income tax rate sits at 13.3%, and a proposed millionaire's surtax that circulated in Sacramento in early 2026 accelerated departure planning for high-net-worth households before any vote occurred.

New York follows closely. The state's top combined city and state marginal rate exceeds 14% for New York City residents, making it the highest income tax burden of any jurisdiction in the country. New Jersey loses more modestly in raw dollars but at a striking rate relative to its population. Its effective property tax rate of 2.13% — the highest in the nation — pushes out homeowners even when income taxes alone would not.

Illinois lost approximately $9 billion in net AGI outflow. Chicago's combined tax burden, pension-driven property tax increases, and ongoing fiscal instability have made it a consistent net loser of high-earning households since 2018.

For a detailed look at what those differences actually cost over a lifetime, see The True Cost of Living in High-Tax States.

What the Wealthy Are Actually Avoiding

Income tax is the headline, but it is not the whole story. Wealthy movers are optimizing across several tax categories at once.

Capital gains treatment matters enormously for investors and business owners. California taxes capital gains as ordinary income at up to 13.3%. Florida, Texas, Nevada, Tennessee, and South Carolina all have zero state capital gains tax. On a $5 million liquidity event, that differential is $665,000 in a single transaction. See the full breakdown at Capital Gains Tax by State: A Full Breakdown.

Estate and inheritance taxes are a second major driver, especially for households over $5 million in net worth. Twelve states plus the District of Columbia still impose estate taxes as of 2026, with exemptions as low as $1 million in Oregon and Massachusetts. Florida, Texas, and Nevada have no estate tax. For families doing generational wealth planning, this is often the deciding factor. The full map is at Estate Tax by State: Where Your Heirs Pay Most.

Property tax rates matter too, particularly for households buying high-value primary residences. Florida's homestead exemption and Save Our Homes cap create a structural tax advantage that compounds over time for long-term residents.

Are Companies Following?

Yes. Corporate headquarters relocations tracked by state economic development agencies show a consistent pattern: financial services, tech, and private equity firms have moved legal domiciles and operational headquarters to Florida, Texas, and Tennessee at an elevated rate through 2025 and into 2026. This matters for migration data because corporate relocations pull high-earning employees and create new ones in the destination state, reinforcing the income inflow trend already visible in IRS data.

The migration is not purely tax-driven in every case. Housing costs, quality of life, and regulatory environments play a role. But when every major gainer has no income tax and every major loser has a top rate above 8%, the correlation is not coincidental.

Key Takeaways

Florida gained over $36 billion in net AGI inflow in the most recent IRS data period, with average incoming filers earning above $180,000 annually.
California, New York, and Illinois combined lost an estimated $120 billion in adjusted gross income to outmigration.
The top five destination states — Florida, Texas, South Carolina, Nevada, and Tennessee — all have zero state income tax.

Use the Live or Die Here state comparison calculator to see exactly what moving from your current state to a lower-tax destination would save you in real dollars.

Sources

Where to confirm these figures

These are the official and primary publishers for the topics in this guide. Check a figure against them before you act on it; laws and rates change, and their current page wins over ours.