Many of the young and rich who live in New York State are leaving. There are many reasons why people are leaving New York, including tax rates, climate, politics, affordable housing, to be closer to family, etc. The young and rich are leaving and heading to one place in particular.
Smart Asset recently conducted a survey about where young wealthy earners are moving when they leave New York (and California). While young people, in the age range of 26 to 35 years old, only make up 2 percent of the tax returns with an income of $200,000 or more, they make up 16 percent of the income for their age group.
According to the study New York and California lost the most young high earners,
Florida and Texas gain the most young high earners, while New York and California lose the most. Florida gained a total of 2,175 high earners aged 26 to 35 after accounting for both inflows and outflows, while Texas gained a net 1,909.
However, even with the loss of 5,062 young high earners, New York still has the highest amount of young rich workers, along with California.
The #1 State Where Young, Rich People Are Moving Is...
Florida with an inflow of 3,391 and an outflow of 1,216, for a positive net of 2,175
Florida is one of nine states in the United States that does not charge state income tax, making it quite appealing. However, for many young people, especially many people or color or LGBTQ individuals, the governmental leadership in Florida has been a turn-off.
The other states in the top 5 places where young high-income earners are moving are:
3. New Jersey
5. North Carolina
You can check out the study results here.
When it comes to taxes, you might think you can write certain things off in New York, but you can't.