Which states attract the most young and rich households?

Mihai_Andritoiu // Shutterstock 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. Top 10 States That Gained the Most Young and Rich Households SmartAsset 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.