About 716,948 Residents in California are migrating elsewhere in the United States, IRS’s latest data showed on Thursday.
Residents in California With High Income Move Elsewhere
IRS released the latest data on Thursday showed that approximately 40,000 Californians are moving to Florida. Furthermore, Approximately 105,000 moved to Texas; data shows that Texas is the top destination for Californians moving out. It also has the most former Californians.
At the same time, 63,000 others moved to Arizona, which makes the state the second in the list of the most Californians destination to move to. A total of 716,948 residents in California relocated elsewhere in the United States between filing as local taxpayers in 2020 and elsewhere in 2021.
IRS data indicates that Americans from other states, roughly 385,188, resettled. Therefore, California encountered a net loss of 331,760, and most residents in California who move possess more money with them.
According to the US Census, the taxpayers brought in $29 billion in taxable earnings, $183,737 on average, and it’s more increased than the state’s median household income of around $84,097.
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Reason Why Residents In California Are Moving
The problem for California is that the taxes are high for rich people and generous benefits for those with low incomes. The people fleeing California filed that they earned an average of twice the state median pay, while the newcomers are below that.
Furthermore, Santa Barbarbara News-press noted the pattern for other states. California taxpayers moving to Florida averaged over $300,000 per filing. Florida is sending taxpayers who earn an average of $90,000.
Nationally, those moving out of California averaged $125,000 in 2020, while those moving in earned $87,000. For a state struggling with housing costs and among the nation’s highest cost of living, that mismatch can’t help but make the state’s challenges more daunting.