Paul L. Caron

Monday, August 24, 2015

IRS State Migration Data: Taxpayers Flock To Texas & Florida, Flee From New York, Illinois & California

Table 1Clean Slate Tax, IRS 2012-2013 State Migration Data — NY Down Big, TX & FL Shine:

The IRS recently released state and county-level migration for 2012-2013. The data is based off individual income tax returns (Forms 1040) filed, received, and processed by the IRS from January 1st to December 31st. The data doesn’t represent the whole population, as many individuals are not required to file a tax return every year. The report did take into account the number of exemptions these returns had. To calculate net migration, the IRS subtracted the number of out-migrant returns from the number of in-migrant returns. The results are quite interesting.

Texas, Florida, Colorado, and South Carolina shined. The state of Texas had the largest influx of new taxpayers for a total of 72,032 new tax returns, representing 152,477 exemptions. Florida was behind Texas, with 27,991 returns representing 73,789 exemptions (see Table 1).

For the worst states, New York took center state with 51,825 less tax returns representing 113,861 exemptions. Illinois placed in the second worst spot with 31,708 less tax returns representing 68,245 exemptions. California, New Jersey, and Pennsylvania followed respectively (see Table 1).

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I wouldn't be surprised if most of the people leaving those states are tax professionals. Anyone who has prepared California, New York City, or Pennsylvania business returns or has dealt with the Illinois or New Jersey DORs knows what I am talking about.

Posted by: Blake Treu | Aug 28, 2015 10:32:00 PM

Yep, I am one of those that is about to make the jump to Florida from Illinois specifically because taxes - specifically property taxes - are much too high. We'd rather shut down a small business and relocate vs. paying an arm and a leg to live within a reasonable commute to work.

Posted by: Nothing2CHere | Aug 25, 2015 7:00:05 AM

Speaking for a lot of Texans, we welcome our new neighbors. However, it pays for newcomers to understand Texans truly believe he who governs least, governs best.

Posted by: Dale Spradling | Aug 25, 2015 6:35:56 AM