(The Center Square) – According to a study on IRS migration data, California has lost more tax income than any other state due to out-migration, losing more than $340 million in 2021 tax revenue due to residents leaving. The same study found that Florida gained $12.4 billion in tax revenue due to in-migration to the state.
Despite having the highest tax losses of any state, the figure doesn’t seem to have experts worried.
“California has the most inhospitable business climate and the highest costs of living and taxes in the country, so none of this should come as a surprise. In fact, I’m actually surprised the number is so low,” said California Policy Center co-founder Edward Ring.
According to the most recent California Community Poll, over 40% of Californians are considering leaving, with over half of those considering leaving most concerned about the state’s high cost of living.
Even with businesses leaving the state, California nonetheless remains the top destination of choice for Americans seeking to move. When Home Bay, a real estate brokerage service, surveyed 1,000 Americans across the country about where they are hoping to move next, California was the number one desired destination, coming in at 27%, with Los Angeles the top choice among those wanting to move to California.
Despite its business climate, California’s weather, culture, and opportunity remain a strong draw. But while before the pandemic California was a destination for more educated and wealthier individuals, now the opposite is true.
The Center Square’s analysis of IRS migration data found that Californians seeking to make a home in the Texas metropoles Dallas or Houston earned an average taxable income of $177,555, while Texans who moved to San Diego or Fresno earned only $75,393 on average, well below California’s $84,097 median income.
