Young People Earning More Than $200,000 a Year Are Fleeing 1 U.S. State — and Flocking to 2 Others They have significantly higher salaries than many of their peers — and they want their money to go further.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Americans in the 26-35 age group earning over $200,000 are gravitating toward tax-advantageous states.
- See where the net inflow of "young, rich" households is most significant, according to SmartAsset's data.
Americans aged 25 to 34 earn an average annual salary of $56,160, according to data compiled by MarketWatch Guides.
However, some young U.S. workers are making that figure several times over — and relocating to places where their money will go further.
Financial technology company SmartAsset pulled IRS data to rank states by the net inflow of "young and rich" households — those aged 26 to 35 earning more than $200,000 a year — to find out where they're leaving and going.
California experienced the largest exit of young and wealthy households in 2022, with more than 3,000 departures, per the study. Illinois saw the second-highest loss at 1,323.
Meanwhile, young high-earners are relocating to Florida and Texas; both states attracted more than double the young, rich households as any other state, with net gains at 1,786 and 1,660, respectively, according to the data.
Half of the states witnessing an influx of young, rich households have no state income tax, SmartAsset reported.
Related: How Debt and Taxes Can Make Smart Entrepreneurs Rich
Check out SmartAsset's full ranking of the top 10 states that gained the most young and rich households below:
1. Florida
- Net migration of young and rich households: 1,786
- Outflow of young and rich households: 2,084
- Inflow of young and rich households: 3,870
- Total young and rich tax returns filed: 33,456
- Average AGI of young and rich households in the state: $526,273
2. Texas
- Net migration of young and rich households: 1,660
- Outflow of young and rich households: 3,376
- Inflow of young and rich households: 5,036
- Total young and rich tax returns filed: 65,904
- Average AGI of young and rich households in the state: $405,215
3. Colorado
- Net migration of young and rich households: 720
- Outflow of young and rich households: 1,417
- Inflow of young and rich households: 2,137
- Total young and rich tax returns filed: 19,911
- Average AGI of young and rich households in the state: $389,859
4. North Carolina
- Net migration of young and rich households: 521
- Outflow of young and rich households: 1,294
- Inflow of young and rich households: 1,815
- Total young and rich tax returns filed: 18,817
- Average AGI of young and rich households in the state: $375,057
5. Washington
- Net migration of young and rich households: 383
- Outflow of young and rich households: 3,088
- Inflow of young and rich households: 3,471
- Total young and rich tax returns filed: 50,509
- Average AGI of young and rich households in the state: $389,713
Related: Relocating Your Business Can Be Complicated — Here's Your Step-by-Step Guide to a Seamless Move
6. South Carolina
- Net migration of young and rich households: 372
- Outflow of young and rich households: 399
- Inflow of young and rich households: 771
- Total young and rich tax returns filed: 6,120
- Average AGI of young and rich households in the state: $370,613
7. Tennessee
- Net migration of young and rich households: 347
- Outflow of young and rich households: 704
- Inflow of young and rich households: 1,051
- Total young and rich tax returns filed: 10,438
- Average AGI of young and rich households in the state: $451,633
8. New Jersey
- Net migration of young and rich households: 300
- Outflow of young and rich households: 3,135
- Inflow of young and rich households: 3,435
- Total young and rich tax returns filed: 35,294
- Average AGI of young and rich households in the state: $388,643
9. Arizona
- Net migration of young and rich households: 192
- Outflow of young and rich households: 802
- Inflow of young and rich households: 994
- Total young and rich tax returns filed: 10,992
- Average AGI of young and rich households in the state: $518,274
10. Nevada
- Net migration of young and rich households: 162
- Outflow of young and rich households: 464
- Inflow of young and rich households: 626
- Total young and rich tax returns filed: 4,764
- Average AGI of young and rich households in the state: $731,304
