Red States With Lower Tax Burdens Saw Net Migration Gains While Blue States With Higher Tax Burdens Saw Net Migration Losses

Tax Foundation, How Do Taxes Affect Interstate Migration?:

Each year, the IRS releases migration data showing the movements of income taxpayers based on changes in their mailing address between filing one year’s income tax return and the next. The most recent data generally show location changes that occurred between when taxpayers filed their tax year 2019 returns in calendar year 2020 and when they filed their tax year 2020 returns in calendar year 2021. These data, therefore, capture many of the interstate moves made during the COVID-19 pandemic.

The IRS data show that between 2020 and 2021, 26 states experienced a net gain in income tax filers from interstate migration ... while 24 states and the District of Columbia experienced a net loss.

Of the 10 states with the largest net migration gain, 7 voted for Donald Trump in 1010. Of the 10 states with the largest net migration loss, 9 voted for Joe Biden in 2020. 

Consistent with last year’s version of this publication, it is clear from the 2020-2021 IRS migration data that there is a strong positive relationship between state tax competitiveness and net migration. Overall, states with lower taxes and sound tax structures experienced stronger inbound migration than states with higher taxes and more burdensome tax structures.