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Which states attract the most young and rich households?

·Jaclyn DeJohn, CFP for SmartAsset

Mihai_Andritoiu // Shutterstock
Mihai_Andritoiu // Shutterstock
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Many affluent young people often relocate for better jobs, lifestyle upgrades and tax advantages, as well as new experiences, friendships and relationships. This can have an outsized effect on local economies and politics, specifically housing, employment and voting, among other important factors.

With this in mind, SmartAsset used IRS data to rank states by the net inflow of young and rich heads of households—those earning at least $200,000 per year and aged 26 to 35.

Key Findings

  • Florida and Texas attract more than double the young and rich households as any other states. After accounting for young high earners leaving, Florida had the biggest gain at 1,786 households. Texas ranked second with a net gain of 1,660 young and rich households. Colorado trailed behind in third place with a net gain of 720.
  • Despite net losses of high-earners across all ages, the young and rich are moving to these two states. New Jersey and Washington each lost thousands of households earning $200,000 or more when considering taxpayers of all ages. However, these states ranked fifth and eighth, respectively, when it comes to attracting young people in this income range. Washington netted 383 additional young and rich households over one year, while New Jersey gained 300. 
  • Half of states attracting the most young and rich households don't charge state income tax. High-earning households have the most to gain when it comes to minimizing income taxes. While nine states don't charge an income tax in addition to federal taxes, five of them made it to the top 10 places where the young and rich are moving: Florida (net gain of 1,786 young and rich households), Texas (1,660), Washington (383), Tennessee (347) and Nevada (162).
  • California lost over 3,000 young and rich households. But it's not the only state. Illinois lost the second-most study-wide with an emigration of 1,323 households. The outflow was worth approximately $5.1 billion in taxes. Massachusetts lost a net of 1,102, and New York ranked fourth-lowest with a net loss of 345 households.
  • The young and rich earn most in Nevada. The average adjusted gross income (AGI) for the young and rich in Nevada was $731,000. Wyoming ranked second for this metric at $612,000, and young and rich Floridians earned third-most at $526,000.
Table showing top cities where the young and the rich are moving

SmartAsset

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Top 10 States That Gained the Most Young and Rich Households

  1. Florida
  • Net migration of young and rich households: 1,786
  • Outflow of young and rich households: 2,084
  • Inflow of young and rich households: 3,870
  • Total young and rich tax returns filed: 33,456
  • Average AGI of young and rich households in the state: $526,273
  1. Texas
  • Net migration of young and rich households: 1,660
  • Outflow of young and rich households: 3,376
  • Inflow of young and rich households: 5,036
  • Total young and rich tax returns filed: 65,904
  • Average AGI of young and rich households in the state: $405,215
  1. Colorado
  • Net migration of young and rich households: 720
  • Outflow of young and rich households: 1,417
  • Inflow of young and rich households: 2,137
  • Total young and rich tax returns filed: 19,911
  • Average AGI of young and rich households in the state: $389,859
  1. North Carolina
  • Net migration of young and rich households: 521
  • Outflow of young and rich households: 1,294
  • Inflow of young and rich households: 1,815
  • Total young and rich tax returns filed: 18,817
  • Average AGI of young and rich households in the state: $375,057
  1. Washington
  • Net migration of young and rich households: 383
  • Outflow of young and rich households: 3,088
  • Inflow of young and rich households: 3,471
  • Total young and rich tax returns filed: 50,509
  • Average AGI of young and rich households in the state: $389,713
  1. South Carolina
  • Net migration of young and rich households: 372
  • Outflow of young and rich households: 399
  • Inflow of young and rich households: 771
  • Total young and rich tax returns filed: 6,120
  • Average AGI of young and rich households in the state: $370,613
  1. Tennessee
  • Net migration of young and rich households: 347
  • Outflow of young and rich households: 704
  • Inflow of young and rich households: 1,051
  • Total young and rich tax returns filed: 10,438
  • Average AGI of young and rich households in the state: $451,633
  1. New Jersey
  • Net migration of young and rich households: 300
  • Outflow of young and rich households: 3,135
  • Inflow of young and rich households: 3,435
  • Total young and rich tax returns filed: 35,294
  • Average AGI of young and rich households in the state: $388,643
  1. Arizona
  • Net migration of young and rich households: 192
  • Outflow of young and rich households: 802
  • Inflow of young and rich households: 994
  • Total young and rich tax returns filed: 10,992
  • Average AGI of young and rich households in the state: $518,274
  1. Nevada
  • Net migration of young and rich households: 162
  • Outflow of young and rich households: 464
  • Inflow of young and rich households: 626
  • Total young and rich tax returns filed: 4,764
  • Average AGI of young and rich households in the state: $731,304

10 States That Lost the Most Young and Rich Households

  1. California
  • Net migration of young and rich households: -3,226
  • Outflow of young and rich households: 10,637
  • Inflow of young and rich households: 7,411
  • Total young and rich tax returns filed: 184,454
  • Average AGI of young and rich households in the state: $480,776
  1. Illinois
  • Net migration of young and rich households: -1,323
  • Outflow of young and rich households: 3,141
  • Inflow of young and rich households: 1,818
  • Total young and rich tax returns filed: 33,304
  • Average AGI of young and rich households in the state: $396,346
  1. Massachusetts
  • Net migration of young and rich households: -1,102
  • Outflow of young and rich households: 3,009
  • Inflow of young and rich households: 1,907
  • Total young and rich tax returns filed: 32,047
  • Average AGI of young and rich households in the state: $379,348
  1. New York
  • Net migration of young and rich households: -345
  • Outflow of young and rich households: 7,580
  • Inflow of young and rich households: 7,235
  • Total young and rich tax returns filed: 84,586
  • Average AGI of young and rich households in the state: $457,137
  1. Pennsylvania
  • Net migration of young and rich households: -320
  • Outflow of young and rich households: 2,084
  • Inflow of young and rich households: 1,764
  • Total young and rich tax returns filed: 24,703
  • Average AGI of young and rich households in the state: $367,912
  1. Michigan
  • Net migration of young and rich households: -158
  • Outflow of young and rich households: 968
  • Inflow of young and rich households: 810
  • Total young and rich tax returns filed: 14,589
  • Average AGI of young and rich households in the state: $386,853
  1. Louisiana
  • Net migration of young and rich households: -94
  • Outflow of young and rich households: 338
  • Inflow of young and rich households: 244
  • Total young and rich tax returns filed: 4,480
  • Average AGI of young and rich households in the state: $379,425
  1. Delaware
  • Net migration of young and rich households: -83
  • Outflow of young and rich households: 205
  • Inflow of young and rich households: 122
  • Total young and rich tax returns filed: 1,293
  • Average AGI of young and rich households in the state: $336,148
  1. Minnesota
  • Net migration of young and rich households: -70
  • Outflow of young and rich households: 648
  • Inflow of young and rich households: 578
  • Total young and rich tax returns filed: 12,201
  • Average AGI of young and rich households in the state: $346,006
  1. Missouri
  • Net migration of young and rich households: -66
  • Outflow of young and rich households: 616
  • Inflow of young and rich households: 550
  • Total young and rich tax returns filed: 7,613
  • Average AGI of young and rich households in the state: $367,704

Data and Methodology

To determine where the young and rich are moving, SmartAsset examined the latest IRS data, which comes from the 2021 and 2022 tax years. Rich households are those with adjusted gross incomes of $200,000 or more. Only applicable tax returns filed for heads of households aged 26 to 35 were considered. The inflow of qualifying households in each state were compared with the outflows to determine the net migration of high-earning households. The average AGI for a state's young and rich households was also considered.

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