Young and Wealthy Professionals Are Moving To These 10 States, According to a New Report Florida and Texas are increasingly the preferred destinations for young high earners.
Key Takeaways
- Florida and Texas emerge as prime choices for high earners, capitalizing on tax benefits.
- New York and California saw the biggest drops in outward migration of high-income earners.
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In an age where many workers can do their jobs from anywhere, some high-earners have moved to locations where their salary provides more purchasing power, a new report found.
A recent study by SmartAsset sheds light on the migration patterns in 2023 of young professionals aged 26 to 35 who earn $200,000 or more, revealing key insights into which states are gaining and losing high-earning individuals.
Florida and Texas stand out as the top destinations for young high earners, with Florida gaining a net total of 2,175 such individuals and Texas following closely with a net gain of 1,909, according to the report. Both states' lack of state income tax makes them appealing destinations for those seeking to maximize their earnings.
While New Jersey saw an overall loss of high earners across all age groups, the state witnessed a dramatic reversal in migration from the 26 to 35 age range. The state netted 1,048 new high-earning professionals—despite an overall decrease in high earners—making it the No. 3 state where the young and wealthy are moving.
On the other end of the spectrum, New York and California saw the biggest outflow of high-income earners, losing 5,062 and -4,495, respectively. The two states, along with being among the most highly taxed areas in the country (California at No. 1 and New York at No. 7, according to TurboTax), have also consistently been at the top of the ranks for the most expensive places to live, according to multiple reports.
Another study by SmartAsset released in July found that, if high-income earners making $200,000 moved from New York and San Francisco to Austin, Texas, they would save over 42% and 34% a year of their incomes, respectively.
Related: This Is How Much You Need to Earn in Order to Rent in the U.S.'s Most Expensive Cities
To determine the number of wealthy youth migrating to each state, SmartAsset focused on two metrics: the inflow of young tax filers aged 26 to 35 with incomes of at least $200,000 who moved into a state, and the outflow of tax filers in the same age range and income bracket who moved out of a state, using data from the IRS and pertained to the tax year 2021.
Here are the top 10 states where young high-income workers are moving in 2023, according to SmartAsset.
1. Florida
Net migration: 2,175
2. Texas
Net migration: 1,909
3. New Jersey
Net migration: 1,048
4. Colorado
Net migration: 754
5. North Carolina
Net migration: 721
6. Connecticut
Net migration: 660
7. Washington
Net migration: 464
8. Tennessee
Net migration: 441
9. Arizona
Net migration: 321
10. South Carolina
Net migration: 318
You can view the full report, here.
