Editor’s Observe: This story initially appeared on SmartAsset.com.
Tax filers with increased adjusted gross incomes (AGIs) are likely to move lower than filers with decrease AGIs. This can be attributable to numerous causes, together with that taxpayers in increased earnings brackets usually skew older or are extra established in their careers.
Whatever the trigger, IRS migration knowledge reveals that roughly 3% of filers with AGIs between $10,000 and $50,000 moved to a special state from 2018 to 2019.
By comparability, 2.26% of tax filers with AGIs between $100,000 and $200,000 moved throughout state strains throughout the identical years. Although increased earners could also be much less more likely to transfer states general, some states have nonetheless seen comparatively giant influxes of this demographic.
On this research, SmartAsset took a better take a look at the place upper-middle-class individuals with AGIs between $100,000 and $200,000 are transferring.
Utilizing IRS migration knowledge from 2018 to 2019, we in contrast the inflows and outflows of upper-middle-class individuals for every state and Washington, D.C. We ranked locations in accordance with the web migration of upper-middle-class earners.
To be taught extra about our method, learn the Knowledge and Methodology part on the finish. That is our third annual research on the states the place upper-middle-class individuals are transferring. Take a look at our 2020 edition here.
Following are the states the place upper-middle-class individuals are transferring in 2021.
1. Florida
Between 2018 and 2019, there was a internet migration of roughly 19,200 upper-middle-class tax filers to Florida.
Consequently, about 1.1 million upper-middle-class individuals filed taxes in 2019, making up 12.85% of all Florida filers.
2. Texas
With no state earnings tax, Texas has been a hotspot for upper-middle-class individuals over the previous a number of years.
Most lately, there was a internet migration of 8,700 upper-middle-class individuals to the state from 2018 to 2019.
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3. Arizona
About 17,300 upper-middle-class individuals moved to Arizona between 2018 and 2019, whereas roughly 10,100 left.
In whole, the web migration of upper-middle-class individuals was nearly 7,200.
4. North Carolina
Between 2018 and 2019, the web migration of high-earning tax filers to North Carolina was 5,395.
Consequently, upper-middle-class filers made up 14.28% of all North Carolina tax filers in 2019.
5. South Carolina
South Carolina follows intently behind North Carolina as a state the place upper-middle-class individuals are transferring.
From 2018 to 2019, greater than 11,600 filers with AGIs between $100,000 and $200,000 moved to the state, whereas roughly 6,500 left. In whole, the web migration was 5,096.
6. Tennessee
Like two of the opposite states in our high 5 – Florida and Texas – Tennessee doesn’t tax wages and earnings, that means that upper-middle-class earners might be able to enhance their financial savings fee.
About 11,200 upper-middle-class individuals moved to Tennessee between 2018 and 2019, whereas lower than 7,800 left. In whole, the web migration of upper-middle-class individuals was 3,409.
7. Washington
With a internet migration of three,321 upper-middle-class individuals, the state of Washington has the best share out of all the highest 10 states in our checklist of the place upper-middle-class individuals are transferring.
In accordance with 2019 IRS knowledge, 19.70% of filers earn between $100,000 and $200,000 yearly.
8. Idaho
Idaho fell one spot in this yr’s research, after rating No. 7 in our 2020 research.
Nonetheless, regardless of inserting behind Washington this yr, IRS migration knowledge reveals that the web migration of upper-middle-class individuals to Idaho truly elevated between 2017-2018 and 2018-2019.
From 2017 to 2018, there was a internet migration of two,708 upper-middle-class individuals, relative to a internet migration of two,887 individuals from 2018 to 2019.
9. Nevada
In accordance with 2018-2019 IRS migration knowledge, about 7,700 upper-middle-class individuals moved to Nevada whereas lower than 5,400 left.
In whole, the web migration of the upper-middle class to Nevada was 2,360, the ninth-highest in our research.
10. Colorado
Colorado rounds out our checklist of high 10 states the place upper-middle class individuals are transferring.
Greater than 14,400 upper-middle-class individuals moved to the state between 2018 and 2019, whereas fewer than 12,400 left.
In 2019, greater than 18% of tax filers earned between $100,000 and $200,000, the Twelfth-highest fee throughout all 50 states and D.C.
Knowledge and Methodology
Knowledge for this research comes from 2018-2019 IRS migration knowledge. To search out the place upper-middle-class individuals are transferring, we discovered the inflows and outflows for individuals incomes between $100,000 and $200,000 for every state and Washington, D.C.
We then calculated a internet migration determine for upper-middle-class filers and ranked all 50 states and Washington, D.C., accordingly.
