355,809 people left California in 2021-2022. We calculated exactly how much they're saving on taxes. Complete analysis of state-to-state migration patterns using official IRS data.
At $100,000 income, moving from California to Texas saves $9,240 per year in state income tax. Over 10 years, that's $92,400. With 102,442 Californians moving to Texas in 2021-2022, that's ~$946 million in annual tax savings for those movers.
Of the top 10 states gaining population, 6 have no state income tax (Florida, Texas, Tennessee, Nevada, Washington, Arizona). The remaining 4 have low flat taxes or reduced rates. High-tax states are losing population to low-tax states at an accelerating pace.
355,809 people left California (net) in 2021-2022. Here's where they went and how much they're saving:
| Rank | State | Net Migration | Tax Rate | Avg Savings |
|---|---|---|---|---|
| 1 | 🌴 Florida | +261,863 | 0% | +$8,500/yr |
| 2 | 🤠 Texas | +182,704 | 0% | +$7,800/yr |
| 3 | 🌲 North Carolina | +89,362 | 4.5% | +$4,200/yr |
| 4 | 🏖️ South Carolina | +57,556 | 0–6.4% | +$3,800/yr |
| 5 | 🎸 Tennessee | +56,385 | 0% | +$7,200/yr |
| Rank | State | Net Migration | Tax Rate | Avg Loss |
|---|---|---|---|---|
| 1 | ☀️ California | -355,809 | 1–13.3% | −$9,240/yr |
| 2 | 🗽 New York | -267,156 | 4–10.9% | −$7,450/yr |
| 3 | 🌆 Illinois | -106,716 | 4.95% | −$5,670/yr |
| 4 | 🌊 New Jersey | -64,177 | 1.4–10.75% | −$6,890/yr |
| 5 | 🦞 Massachusetts | -44,489 | 5% | −$4,120/yr |
While California → Texas saves ~$7,300/year in state income tax at $100K, Texas has higher property taxes (avg 1.6% vs CA 0.7%) and higher sales taxes (avg 8.2% vs 7.25%). Housing costs vary dramatically by city (Austin expensive, Dallas moderate, Houston affordable). Total cost of living matters more than just income tax.
Median CA home: $798,000 (2022). Median TX home: $303,000. That's a $495,000 difference. Even with higher TX property tax rates, annual costs are lower.
COVID normalised remote work. Why pay CA taxes + CA housing costs if you can work from anywhere? Tech workers especially arbitraging location.
High-tax states raised taxes (CA added 13.3% bracket in 2012). Low-tax states kept rates flat or reduced them. The gap widened.
Florida/Texas/Arizona = warm weather, lower cost of living, less regulation. Retirees and families prioritising quality of life.
Yes. Migration numbers are from IRS Statistics of Income, based on address changes on federal tax returns. This is the most reliable migration data available (more accurate than Census estimates). Tax calculations are from official state tax authorities and verified against state tax calculators.
Texas has much higher property taxes than California (1.6% vs 0.7% average). A $400K home in Texas costs ~$6,400/year in property tax vs ~$2,800 in California. However, you can buy a much nicer home in Texas for $400K. It's about total housing cost, not just tax rate.
Partially yes. Texas/Florida have higher sales tax and property tax. But the math still works out for most people. At $100K income, you'd need to spend $103,000 on taxable goods (at 9% sales tax) to pay $9,270 in sales tax (equivalent to CA income tax). Most people don't spend their entire income on taxable goods.
No, but the trend is concerning. California's population declined for the first time in 2020-2022. However, it still has the world's 5th largest economy, dominates tech/entertainment, and attracts international immigration. The question is whether high earners leaving will create a "tax death spiral" where remaining residents pay higher rates to make up lost revenue.
Probably not. Taxes are one factor. Also consider: job market, family proximity, climate, schools (if you have kids), healthcare access, culture fit, and total cost of living. Moving from California to save $9K/year makes sense if you're remote and flexible. Moving if it means leaving a $150K job for a $100K job doesn't.
See exactly how much you'd save by moving from your current state to any other:
These are estimates based on average scenarios. Your actual tax savings depend on: income level, filing status, deductions, local taxes, and more. Property taxes and cost of living vary dramatically within states. Always consult a tax professional for your specific situation.