Another year, another wave of Americans fleeing high-tax states and heading for tax-friendlier climes.
In 2024, the trend continued of low-tax states gaining residents at the expense of high-tax states, according to a recent Tax Foundation analysis of data from the U.S. Census Bureau, U-Haul and United Van Lines.
According to the Tax Foundation, Americans are clearly abandoning states with high taxes and a high cost of living and seeking more affordable alternatives:
“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. Meanwhile, of the 25 states and D.C. with tax burdens per capita at or above the national average, 17 of those jurisdictions experienced net outbound domestic migration.”
Following are the states that lost the largest shares of residents in 2024 — followed by the states that gained the largest shares of new residents. We start with the states that are losing folks in droves.
50. Hawaii
Net population change due to interstate migration in 2024: Decreased by 0.65%
Income tax rate in this state as of 2024: Ranges from 1.4% to 11%
Even paradise has a price — and, apparently, one that is too high for a growing number of folks. The Aloha State said “so long” to 0.65% of its residents in 2024.
The state has notoriously high income tax rates, but there is a silver lining for those who hate the taxman: Hawaii sits atop the list in “9 States With the Lowest Property Tax Rates.”
48. New York (tie)
Net population change due to interstate migration in 2024: Decreased by 0.61%
Income tax rate in this state as of 2024: Ranges from 4% to 10.9%
The Big Apple continued to turn a bit mushy in 2024, with 0.61% of residents leaving New York for new homes in other states.
The loss of residents continues a trend that has been evident for several years now in New York.
48. California (tie)
Net population change due to interstate migration in 2024: Decreased by 0.61%
Income tax rate in this state as of 2024: Ranges from 1% to 13.3%
California has some of the highest income tax rates in the country. The top rate of 13.3% is the highest in the U.S.
In recent years, California has seen a steady stream of its residents leave, and 2024 was no exception, with 0.61% of the population relocating to somewhere else, according to the Tax Foundation analysis. High tax rates are likely one reason why the Golden State is losing some of its gleam.
States that gained the most residents
Next up are the states at the opposite end of the spectrum: those that attracted the most Americans who moved across state lines in 2024, based on the Tax Foundation’s analysis.
3. Delaware
Net population change due to interstate migration in 2024: Increased by 0.79%
Income tax rate in this state as of 2024: Ranges from 2.2% to 6.6%
Delaware is a bit of a sleeper: While most of the fastest-growing states are in the South and parts of the West, Delaware is the outlier. This state in the Mid-Atlantic increased its population by 0.79%.
2. Idaho
Net population change due to interstate migration in 2024: Increased by 0.83%
Income tax rate in this state as of 2024: Flat tax of 5.8%
Idaho continues to attract new residents, a trend that really caught fire during the COVID-19 pandemic. A relatively modest flat rate is probably helping to draw some residents.
1. South Carolina
Net population change due to interstate migration in 2024: Increased by 1.26%
Income tax rate in this state as of 2024: Ranges from 0% to 6.4%
All that Southern charm appears to be drawing new residents to South Carolina. The Palmetto State saw its population grow by 1.26% in 2024, tops in the nation, according to the Tax Foundation report.
Columbia, South Carolina, is also among the “10 Cities Generation Z Is Taking Over.”
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