Tax filers with increased adjusted gross incomes (AGIs) are inclined to transfer lower than filers with decrease AGIs. This can be resulting from numerous causes, together with that taxpayers in increased revenue brackets typically skew older or are extra established of their careers.
Whatever the trigger, IRS migration knowledge exhibits that roughly 3% of filers with AGIs between $10,000 and $50,000 moved to a special state from 2018 to 2019.
By comparability, 2.26% of tax filers with AGIs between $100,000 and $200,000 moved throughout state strains throughout the identical years. Although increased earners could also be much less prone to transfer states general, some states have nonetheless seen comparatively giant influxes of this demographic.
On this research, SmartAsset took a better take a look at the place upper-middle-class folks with AGIs between $100,000 and $200,000 are shifting.
Utilizing IRS migration knowledge from 2018 to 2019, we in contrast the inflows and outflows of upper-middle-class folks for every state and Washington, D.C. We ranked locations based on the online migration of upper-middle-class earners.
To be taught extra about our strategy, learn the Knowledge and Methodology part on the finish. That is our third annual research on the states the place upper-middle-class individuals are shifting. Take a look at our 2020 version right here.
Following are the states the place upper-middle-class individuals are shifting in 2021.
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Between 2018 and 2019, there was a internet migration of roughly 19,200 upper-middle-class tax filers to Florida.
Consequently, about 1.1 million upper-middle-class folks filed taxes in 2019, making up 12.85% of all Florida filers.
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With no state revenue tax, Texas has been a hotspot for upper-middle-class folks over the previous a number of years.
Most just lately, there was a internet migration of 8,700 upper-middle-class folks to the state from 2018 to 2019.
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About 17,300 upper-middle-class folks moved to Arizona between 2018 and 2019, whereas roughly 10,100 left.
In whole, the online migration of upper-middle-class folks was virtually 7,200.
4. North Carolina
Between 2018 and 2019, the online migration of high-earning tax filers to North Carolina was 5,395.
Consequently, upper-middle-class filers made up 14.28% of all North Carolina tax filers in 2019.
5. South Carolina
South Carolina follows intently behind North Carolina as a state the place upper-middle-class individuals are shifting.
From 2018 to 2019, greater than 11,600 filers with AGIs between $100,000 and $200,000 moved to the state, whereas roughly 6,500 left. In whole, the online migration was 5,096.
Like two of the opposite states in our high 5 – Florida and Texas – Tennessee doesn’t tax wages and earnings, which means that upper-middle-class earners might be able to enhance their financial savings fee.
About 11,200 upper-middle-class folks moved to Tennessee between 2018 and 2019, whereas lower than 7,800 left. In whole, the online migration of upper-middle-class folks was 3,409.
With a internet migration of three,321 upper-middle-class folks, the state of Washington has the very best proportion out of all the highest 10 states in our listing of the place upper-middle-class individuals are shifting.
In response to 2019 IRS knowledge, 19.70% of filers earn between $100,000 and $200,000 yearly.
Idaho fell one spot on this 12 months’s research, after rating No. 7 in our 2020 research.
Nonetheless, regardless of putting behind Washington this 12 months, IRS migration knowledge exhibits that the online migration of upper-middle-class folks to Idaho really elevated between 2017-2018 and 2018-2019.
From 2017 to 2018, there was a internet migration of two,708 upper-middle-class folks, relative to a internet migration of two,887 folks from 2018 to 2019.
In response to 2018-2019 IRS migration knowledge, about 7,700 upper-middle-class folks moved to Nevada whereas lower than 5,400 left.
In whole, the online migration of the upper-middle class to Nevada was 2,360, the ninth-highest in our research.
Colorado rounds out our listing of high 10 states the place upper-middle class individuals are shifting.
Greater than 14,400 upper-middle-class folks moved to the state between 2018 and 2019, whereas fewer than 12,400 left.
In 2019, greater than 18% of tax filers earned between $100,000 and $200,000, the Twelfth-highest fee throughout all 50 states and D.C.
Knowledge and Methodology
Knowledge for this research comes from 2018-2019 IRS migration knowledge. To search out the place upper-middle-class individuals are shifting, we discovered the inflows and outflows for folks incomes between $100,000 and $200,000 for every state and Washington, D.C.
We then calculated a internet migration determine for upper-middle-class filers and ranked all 50 states and Washington, D.C., accordingly.
Disclosure: The knowledge you learn right here is all the time goal. Nonetheless, we typically obtain compensation once you click on hyperlinks inside our tales.