Which states attract the most young and rich households?

By Stacker

Published September 19, 2024 11:41 PM

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Which states attract the most young and rich households?

Aerial view of the Tampa, FL skyline.

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.

SmartAsset

Top 10 States That Gained the Most Young and Rich Households

Table showing top cities where the young and the rich are moving

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

This story was produced by SmartAsset and reviewed and distributed by Stacker Media.

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