Where are Americans moving?

States with the highest proportion of inbound moves:

1. Idaho
2. South Carolina
3. Oregon
4. South Dakota
5. Arizona
6. North Carolina
7. Tennessee
8. Alabama
9. Florida
10. Arkansas

Learn more: https://buff.ly/3ilM69r 

States with the highest proportion of outbound moves:

- New Jersey
- New York
- Illinois
- Connecticut
- California
- Kansas
- North Dakota
- Massachusetts
- Ohio
- Maryland

Learn more: https://taxfoundation.org/state-migration-trends

Sustained periods of inbound migration lead to (and reflect) greater economic output/growth.

Prolonged periods of net outbound migration, however, can strain state coffers, contributing to revenue declines as economic activity and tax revenue follow individuals out of state.

While it's difficult to measure the extent to which tax considerations factor into individuals’ moving decisions (and "state tax climate" isn't listed as a common reason for moves in this study), we can see glimpses of how taxes can affect decision-making.

There's no doubt that taxes are important in many individuals’ personal financial deliberations.

With the rise of remote work, individuals are likely to be more mobile than ever, able to make decisions about where to live that are independent of where their employer is located.

Another reason people move is retirement, according to the study.

Top 10 States for Retirement-Motivated Moves, 2020:

1. Delaware
2. Florida
3. South Carolina
4. Arizona
5. Wyoming
6. Idaho
7. New Mexico
8. Nevada
9. Maine
10. North Carolina

It’s unsurprising that retirees gravitated toward states with good climates, but many of these top states also have tax climates that would be attractive to retirees.

9 out of these 10 states either exempt a large portion of Social Security from income taxes, exempt Social Security completely, or have no income tax at all.

Retirees, moreover, are freer to consider factors like taxation than those who are tied to a job.

4 of the 10 worst-performing states on our 2021 State Business Tax Climate Index are also among the 10 states with the most outbound migration in this year’s National Movers Study (New Jersey, New York, Connecticut, and California).

7 of the top 10 states ranked for inbound migration also rank in the top half of states on the 2021 State Business Tax Climate Index, which measures tax structure.

While certain factors are outside a state’s control (sunny Florida may always have a certain competitive advantage in attracting retirees, for example), every state can foster an attractive economic landscape through wise tax policy decisions. https://taxfoundation.org/state-competition