In states with the lowest taxes, an average of four people moved in from other parts of the country for every one who left over the last eight years, according to a Redfin report. The trend is reversed in high-tax states, where an average of 2.5 people left for every one person who moved in.
Low-tax states Nevada, Florida, South Carolina, and Texas are all attracting new residents, according to Redfin. Nevada has the sixth-lowest tax rate in the country and gained more residents than any other state over the last eight years. For every nine people who moved into Nevada from 2013 to 2020, just one person left, according to the Redfin report.
Florida has the seventh-lowest tax rate in the country and gained more residents than all but four other states from 2013 to 2020. For every seven people who moved into Florida, just one person left.
“A lot of people are moving into Jacksonville from places like California and the East Coast because they can work remotely. They figure it’s a pretty good deal to pay no stahas te income tax and live at the beach,” Redfin agent Heather Kruayai said in a release.
South Carolina the lowest tax rate in the U.S. It also has the 11th-highest in-migration rate (tied with Delaware), with five people moving in for every one person who left from 2013 to 2020. Texas, with the eighth-lowest tax rate in the country, also saw five people move in for every person who left.
On the other end of the spectrum, Redfin’s analysis shows states with high taxes tend to lose residents. New York, which has the sixth-highest tax rate in county, lost more residents than any other state from 2013 through 2020 (for every eight people who left, just one person moved in.)
Illinois and New Jersey are among the top states in the country in terms of both taxes and the number of people moving away. California has the highest tax rate in the country, and while more people left the state over the last decade than moved in, it ranks number 15 in terms of out-migration, with about one person moving in for every three people who left.
According to a recent Redfin survey, 21 percent of homebuyers who are relocating cite lower taxes as one reason for their decision to move. The only factors more common than low taxes are proximity to family, desire to live somewhere more affordable and desire for a bigger house.
Click here to view the full report.