State governments can benefit[1] greatly from an influx of movers – enjoying everything from increased tax[2] revenues to new business activity.
Recently, changes to the U.S. tax code have encouraged an increasing number of people to move – taking their cash to lower-tax states like Florida.
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As it turns out, however, Florida has been banking on moving trends even prior to the implementation of the new tax law.
According to a new study from LendingTree[3], which analyzed IRS data from 2016, Florida is the number one largest beneficiary from relocations out of all 50 states – by a landslide.
The Sunshine State drew in a net influx of about $17.7 billion in adjusted gross income (AGI) – most of which (72 percent) came from those aged 55 and older. It is consistently one of the most popular destinations[4] for retirees due to affordability and low taxes.
Florida's $17.7 billion in net AGI dwarves the remaining 19 states that saw a positive net influx of income – which combined for a total of $19.4 billion.
South Carolina and another no-income tax state – Texas – trailed Florida, with net adjusted income totals around $2.25 billion apiece.
Florida is unique in that it also draws a large proportion of higher net-worth individuals – more than 85 percent of its net inflow of income came from people earning at least six-figures.
On the flip side, New York lost the largest amount of adjusted gross income from migration, about $8.8 billion.
Another high-tax state, Connecticut, had the largest income loss relative to its overall economy – at $2.6 billion. Connecticut, Pennsylvania, New...