The super-rich New Yorkers, including billionaire Carl Icahn, are fleeing the Big Apple en masse. These are the top 3 states they run to

The super-rich New Yorkers, including billionaire Carl Icahn, are fleeing the Big Apple en masse.  These are the top 3 states they run to

The super-rich New Yorkers, including billionaire Carl Icahn, are fleeing the Big Apple en masse. These are the top 3 states they run to

Haven’t you heard? New York is 2018. At least this applies to the super-rich.

Between 2019 and 2020, the number of New Yorkers earning between $150,000 and $750,000 dropped nearly 6%, according to the New York City Independent Budget Office.

What’s more, the number of truly high-paid people—those earning more than $750,000—has dropped nearly 10% over the same period.

Some speculate that the wealthy elites are leaving New York because of the state’s high tax rates. While it’s hard to say exactly why people are moving, the loss of highly paid workers could impact a city’s income tax revenue.

By comparison, the city’s 41,000 richest 1% pay more than 40% of all income taxes. The 450,000 people in the top 10% pay about two-thirds of all income taxes.

In other words, the remaining 90% of taxpayers contribute about one-third of the city’s income tax revenue.

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In its latest report, financial technology company SmartAsset found that in 2020, New York had a net outflow of nearly 20,000 high-income households, defined as households earning more than $200,000. This was more than any other condition in the study.

So where are these people going?

Florida

No state has attracted more high-income households than the Sunny State.

Florida added 32,019 tax declarers who reported incomes of at least $200,000 in 2020, according to SmartAsset. While the state also lost 11,756 such filers during the year, the end result was a net gain of 20,263 high income taxpayers.

One of the super-rich people who moved to Florida was billionaire activist investor Carl Icahn. The 86-year-old was born in New York and has been running his business from the city for decades. In 2020, he moved to his office in Sunny Isles Beach, Florida.

The obvious upside to moving to Florida – especially for those who live in the Snow Belt – is the weather. But the main reason why Florida is the best place for high-paid people may be financial: it is one of the few states in the country that does not impose income tax on its residents.

Texas

Texas is another warm state that does not have a state income tax. Therefore, it is not surprising that high-income households flock to it.

In 2020, 18,417 tax declarers who made at least $200,000 moved to Texas, while 13,061 highly paid tax workers left. Simple math shows a net increase of 5,356 high-income households for the Lone Star State.

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In addition to the lack of a state income tax, Texas also attracts newbies with a reasonable cost of living. According to Zillow Real Estate Market, the typical Texas home value is $315,451, lower than the national average of $357,319. On the other hand, in New York, the typical value of a home is $782,365.

At the same time, Texas boasts a booming economy and a large number of jobs. The state led the nation in the fastest annual job growth rate of 5.4% from October 2021 to October 2022, according to the Texas Workforce Commission.

Arizona

With a net increase of 5,268 tax declarers with an income of at least $200,000 in 2020, Arizona is the third most popular destination for high-paid migrants.

Arizona has a state income tax, but this tax year is moving towards a flat tax rate of 2.5%. Now that this rate is in place, the state has the lowest flat tax in the country.

“It’s time to provide long-term tax breaks to Arizona families and small businesses so they can keep more of their hard-earned money,” said Gov. Doug Ducey. “These tax credits keep Arizona competitive and maintain our reputation as a job magnet and generator of opportunity.”

One last thing, while Florida is known as the Sunshine State, Arizona actually gets the most sun. The average annual amount of sunlight is 5755 kJ per square meter – more than in any other state in the country.

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This article provides information only and should not be construed as advice. It is provided without any warranty.

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