According to a study done by United Van Lines for the past 5 years New Jersey has been the leader in terms of percentage of out of state moves versus instate moves. The percentage for 2022 was 67% outbound vs 33% inbound. Their annual average for the past 5 years has been 70% for outbound moves.
Of those moves the number 1 reason given year after year and hovering in the low 30% range has been for retirement. The next 3 most often given reasons have been lifestyle, family and job. These reasons have moved up and down in that list year after year.
The top ten for largest net percentage of out of state moves vs in state moves; (number in parentheses indicates Local-State Tax burdens)
1. New Jersey (13.2)
2. Illinois (12.9 %)
3. New York (15.9% - highest)
4. Michigan (8.6 %)
5. Wyoming (7.5 %)
6. Pennsylvania (10.6 %)
7. Massachusetts (11.5%)
8. Nebraska (11.5 %)
9. Louisiana (9.1%)
10. California (13.5 %)
Average burden = 11.43%
The top ten for largest net percentage of in of state moves vs out of state moves:
1. Vermont (13.6%)
2. Oregon (10.8%)
3. Rhode Island (11.4%)
4. South Carolina (8.9%)
5. Delaware (12.4 %)
6. North Carolina (9.9%)
7. Washington, D.C. (12.0%)
8. South Dakota (8.4%)
9. New Mexico (10.2%)
10. Alabama (9.8%)
Average burden = 10.74%
Difference = 0.69% nice number…..
Do people really move from one state to another to escape high tax burdens? Right leaning talking heads would tend to lead you to believe it’s because of high taxes. In many cases that could be true.
Suppose someone lived in New York and who was deciding to move. Assume the sole reason for moving would be to reduce his tax burden. Then Alaska would be the choice since at 4.6% it has the lowest the local and state tax burden in the US. But, Alaska isn’t the most moved to state. In fact, it’s not even in the top 10.
In fact the average tax burden of the top 3 states people moved from is 11.43% while the burden in the top 3 states they moved to is 10.74%%. The net difference is only 0.69%. So the total average out of pocket difference for some one who earns $250,000 per year is $1,725 which is equal to less than 36% than $4,808, their weekly salary.
In terms of raw numbers the dollar amount could be significant depending on actual amount. But, as a percentage it is probably negligible. It would seem that percentage would only become significant if all other day to day expenses were also measurably lower.
Just an observation. But, it seems a worthy topic from the Truck Stop Toilet Stall Think Tank.
https://www.unitedvanlines.com/newsroom/movers-study-2022
https://taxfoundation.org/wp-content/uploads/2022/04/total-tax-burden-by-state-2022-state-and-local-tax-burdens-2022-state-and-local-taxes.png
Edited to correct mathematical errors.
