(The Center Square) — South Carolina topped the list of states experiencing a net gain in income tax filers from interstate migration between 2021 and 2022, one of 26 states that experienced a gain.
The finding is from the Tax Foundation’s new analysis of Internal Revenue Service migration data.
According to its analysis, The Palmetto State saw a 1.36% net gain in residents relative to its population, ranking it first nationally. The state saw a gain of 70,429 residents and 32,927 tax returns, while its adjusted gross income increased by $4.76 billion.
This year, state lawmakers passed a budget that lowers the state’s personal income tax rate from 6.4% to 6.2%.
“Until recently, South Carolina had the highest personal income tax rate in the southeast and the 12th highest in the nation at 7%. No more,” Republican Gov. Henry McMaster said in a July statement. “A few years ago, I was honored to propose and sign into law the largest income tax cut in state history, followed by income tax cuts in each subsequent state budget.
“…This year taxpayers will keep an additional $199 million of their hard-earned money instead of sending it to state government,” McMaster added. “If future revenues allow, we should continue cutting the personal income tax rate each year until we are well below the 6% rate.”
Neighboring Georgia saw a 0.47% net gain in residents, ranking it 14th nationally. North Carolina experienced a 0.78% net gain in residents, ranking seventh in the country.
IRS migration data revealed that North Carolina, Georgia, Florida and New York were the top states for residents who moved to South Carolina. North Carolina, Georgia, Florida, Virginia and Texas were the top destinations for residents leaving the state.