DALLAS — Texas is one of the most popular relocation states for high-income earning families, according to an analysis of tax filing data for 2019-20.
The Lone Star State ranked second nationally with a net gain of 5,356 households making at least $200,000 a year, according to fintech company SmartAsset. That narrowly edged out Arizona, but both totals fall well behind leader Florida’s 20,263 net total.
Texas added 18,417 tax filers making at least $200,000 but it also lost 13,061, according to the analysis.
In all, 30 states recorded positive net migration of high-income households.
Of the 10 states that gained the most high-income households, four were ones without a state income tax. Texas, Florida, Tennessee and Nevada have no state income tax.
The states with the biggest losses of high-income households, California and New York, are among those with the highest income taxes. Each lost over 19,000 high-income households.
Another key division was geographic location. All of the top six net-influx states are in the Sun Belt.
Washington, D.C., has the largest proportion of high-earners (12%), while West Virginia has the smallest (3%). The nation’s capital is one of only four places – along with Connecticut, New Jersey and Massachusetts – where high-income filers make up more than 10% of all tax returns.
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