TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Thursday, August 18, 2016

IRS Migration Data: Taxpayers Leave NY, IL & CA For TX, FL & SC

California GoodbyeFollowing up on my previous post, Skyrocketing Housing Costs, 'Endless' Taxes Prompt Exodus Of Californians; Inequality Worsens As Middle Class Jobs Are 'Vaporized':  Breitbart, California’s Top Export Continues to Be Its Middle Class:

In the latest update by the IRS for the period of 2013 to 2014, California exported a net 57,900 citizens, whose average incomes were $7,100 higher than the state’s average.

The Internal Revenue Service (IRS) just released its July 1, 2013 to June 30, 2014 migration data, which “approximates the number of individuals” who moved between states in the U.S.

California was the third largest net exporter of citizens behind Illinois (82,000) and New York (126,800). ...

Texas had the highest net domestic migration in the 2013 to 2014 period, with 229,300. Florida was ranked second in net domestic migration, with 114,400 — which was nearly 4 times as large as third ranking South Carolina (30,100). Colorado followed closely, at 29,500 net domestic migrants, with Washington placing fifth with 27,000.

New Geography, Still Migrating to Texas and Florida: 2013-2014 IRS Data:

The states with the largest net domestic migration losses are no surprise. New York, which has led net domestic out-migration in most recent years, did so again, with the loss of 126,800. Illinois lost the second greatest number of domestic migrants at 82,000. California ranked third, with a loss of 57,900.

Chart 2

Net domestic migration, calculated by subtracting the number of people moving out of state from the number of people moving into a state, was by far the greatest in Texas and Florida.

Chart 1

IRS News, Tax | Permalink


This could also be a lot of retirees moving to sunnier climates. Many in my area (Greater Philadelphia) want out and an easier winter. They are heading to North Carolina, Florida and Arizona.

Posted by: Tina848 | Aug 18, 2016 5:53:32 AM

Thanks for the heads up about California's incipient depopulation. Most of us had no idea and subscribe to the myth that California is a place with a high per capita GDP and lots of economic activity.
The solution is to institute the approach to tax policy that has worked so well in Louisiana and Kansas.
It's true that California is running a surplus almost twice the size of Kansas's entire tax revenues but the principles are the same.

If there is a social problem more odious than a Californian crashing out of his tax protected $1,000 a square foot place live elsewhere at $150 a square foot, I don't know what it is.

Posted by: Jim harper | Aug 18, 2016 9:50:44 AM

Tina is right. Many of those leaving New York and Illinois, where the climate is far from ideal, to states such as Florida are retiring. That's why California's third-place ranking is more troubling for the state's long-term economic health. Coastal California has a great climate. They're not leaving for better weather. They're leaving for better economies.

Posted by: Michael W. Perry | Aug 19, 2016 5:49:57 AM

@Michael Perry,

Are you seriously suggesting that the service and tourism-based economy of Florida is healthier than the finance and tech based economies of NY and California?

Posted by: Unemployed Northeastern | Aug 19, 2016 7:34:00 AM

@Unemployed Northeastern Texas is the largest beneficiary of intrastate migration. They have thriving, energy, tech, and aerospace industries. Florida also has a good aerospace industry.

As we continue into the space age, Texas and Florida will continue to grow.

Washington and Colorado saw increases in population due to legalizing weed. It is likely that some of those moving from California and Eastern states moved to have access to legal weed.

Posted by: wodun | Aug 19, 2016 2:05:04 PM