IRS: Blue States Suffering Largest Population and Tax Revenue Losses, Red States See Largest Gains

Democratic Governors Criticize Red States as Residents Flee

Residents Fleeing Democratic States for Republican-Controlled States

Despite Democratic governors like Gavin Newsom of California and J.B. Pritzker of Illinois criticizing red state policies, their residents are leaving in droves for Republican-controlled states. According to IRS migration data released last week, California lost the most residents, with a net loss of nearly 332,000 people and more than $29 billion in adjusted gross income in 2021. New York came in second with a net loss of over 262,000 residents and $24.5 billion in income, while Illinois suffered a net loss of 105,000 people in 2021 and $10.8 billion in income.

High-Income Residents Fleeing High-Tax States

Florida gained the most residents, with a net gain of over 255,000 people and $39 billion in income, while Texas came in second with nearly 175,000 residents and $10.9 billion in income. Wealthy residents appear to be the most likely to flee high-tax states. For example, residents who fled California made an average of $183,737, which is considerably higher than the state’s median income of roughly $84,000. Taxpayers leaving Illinois and New York made up to $40,000 more on average than those who came to the states, according to IRS data analyzed by The Wall Street Journal.

Popular Destinations for Residents Leaving Democratic States

The most popular destination for those exiting California has been Texas, even as Newsom targets the red state for its gun laws and abortion policies. The most popular destination for those leaving Illinois has been Florida, but that has not stopped Pritzker from criticizing the red state’s governor. In February, he said Florida GOP Gov. Ron DeSantis “doesn’t represent the values of the people in Illinois. … In fact, he is the antithesis of that. He’s demonstrated that he’s homophobic, that he has tendencies to promote racism.”

IRS Migration Data

• California: -158,220 individuals, -$29.07 billion
• New York: -142,357 individuals, -$24.52 billion
• Illinois: -53,910 individuals, -$10.88 billion
• Massachusetts: -25,029 individuals, -$4.28 billion
• Louisiana: -14,113 individuals, -$861 million

Florida gained the most residents, with a net gain of over 255,000 people and $39 billion in income, while Texas came in second with nearly 175,000 residents and $10.9 billion in income. Meanwhile, North Carolina had a net gain of nearly 77,000 residents, and South Carolina gained nearly 65,000.

• Florida: 128,228 individuals, $39.19 billion
• Texas: 82,842 individuals, $10.9 billion
• North Carolina: 40,828 individuals, $4.54 billion
• South Carolina: 29,981 individuals, $4.19 billion
• Tennessee: 30,292 individuals, $4.15 billion

The largest source of Florida’s new residents was New York, with 84,365 arriving from the Empire State. New York Democrat Gov. Kathy Hochul is well aware of her state’s issue with residents fleeing to Florida. Last year, she joked while signing a bill about Holocaust education: “I just want to say to the 1.77 million Jews who call New York home: Thank you for calling New York home. Don’t go anywhere or to another state. Florida is overrated.”