Blue states suffer largest population, tax revenue losses, as red states see largest gains: IRS data

Despite Democratic governors like California's Gavin Newsom and Illinois' J.B. Pritzker criticizing Republican-led policies, their states are seeing an exodus of residents to Republican-controlled states. The Internal Revenue Service (IRS) migration data from 2021 reveals that California experienced the most significant loss of residents, with almost 332,000 people leaving and a loss of more than $29 billion in adjusted gross income. New York and Illinois were the second and third states with the largest population loss, respectively. However, Massachusetts, Louisiana, and New Jersey also experienced a decline in population and income, albeit not as significant as the three most populous states.

On the other hand, Florida gained the most residents and income, followed by Texas, North Carolina, and South Carolina. The majority of the new residents in Florida were from New York, followed by high-income residents from New Jersey, California, and Illinois, all states known for high taxes. Wealthy residents seem to be the most likely to flee high-tax states, with those leaving California earning an average of $183,737, much higher than the state's median income of around $84,000. According to IRS data analyzed by The Wall Street Journal, taxpayers leaving Illinois and New York made up to $40,000 more on average than those who came to the states.