(The Center Square) – An analysis of recent inbound migration data shows Tennessee is a popular place.
The Volunteer State ranks fifth in growth according to data from the U.S. Census Bureau and is the fifth most popular state for one-way moves, according to a sales analysis by U-Haul.
The reason is likely lower taxes, according to an analysis by the Tax Foundation.
“Of the 26 states whose overall state and local tax burdens per capita were below the national average in 2022 (the most recent year of data available), 18 experienced net inbound interstate migration in FY 2024,” the analysis said. “Meanwhile, of the 25 states and DC with tax burdens per capita at or above the national average, 17 of those jurisdictions experienced net outbound domestic migration.”
States with no income tax are appealing, the analysis said. Tennessee does not have an income tax.
“In the top third of states for highest domestic migration-related population growth, the average combined top marginal state income tax rate is about 3.5%,” according to the analysis. “In the bottom third, it’s 3.2 percentage points higher, at about 6.7%.”
Tennessee’s population grew from 7.1 million in 2023 to 7.2 million this year, according to data released by the U.S. Census Bureau in December. The state reached 7 million in population for the first time in 2022.
The state’s population has continued to grow over the past five years. The state reached 7 million in population for the first time in 2022, according to the data.
South Carolina, Idaho, Delaware and North Carolina ranked above Tennessee for inbound migration, according to the Tax Foundation’s report. Illinois, Alaska, California, New York and Hawaii are at the bottom of the list.