Florida Attracts Young & Rich Households

According to a study by SmartAsset, a financial technology company, **Florida** experienced the largest net inflow of "young and rich" households in 2022, attracting more than 1,786 wealthy individuals aged 26 to 35.

• This influx is largely driven by **Florida's** lack of state income tax, making it an attractive destination for high earners seeking to maximize their disposable income.
• While **Florida** had a significant outflow of 2,084 young and rich households, the influx was even greater, resulting in a net gain of 1,786.
• The average adjusted gross income (AGI) of young and rich households in **Florida** was $526,273, indicating substantial earning power amongst this demographic.

Texas Also Sees Significant Inflow of Young & Rich

Following closely behind **Florida**, Texas also witnessed a considerable influx of young and rich households, attracting more than 1,660 high earners.

• Similar to **Florida**, Texas's absence of state income tax is a major draw for wealthy individuals.
• Despite a notable outflow of 3,376 young and rich households, Texas experienced a net gain of 1,660, solidifying its position as a top destination for this demographic.
• The average AGI of young and rich households in Texas was $405,215, showcasing the financial strength of this migrating group.

Other States Attracting Young & Rich

Beyond **Florida** and Texas, other states are also witnessing an influx of young, high-earning individuals. These states typically offer favorable tax environments and other appealing features that attract this demographic.

• Colorado, with its vibrant lifestyle and growing economy, attracted 720 young and rich households, resulting in a net gain despite a considerable outflow.
• North Carolina, known for its business-friendly environment and affordable cost of living, also witnessed a significant net migration of young and rich households, attracting 521.
• Several states without state income tax, including South Carolina, Tennessee, Arizona, and Nevada, also experienced net gains in young and rich households, further highlighting the influence of tax policies on migration patterns.

Factors Driving Migration of Young & Rich Households

The migration patterns of young and rich households are influenced by a multitude of factors, including:

• State income tax: States without state income tax, like **Florida** and Texas, offer a substantial financial advantage to high earners.
• Cost of living: States with lower costs of living, particularly in areas like housing, can be more attractive to those seeking to stretch their income further.
• Economic opportunities: States with robust economies and growing job markets appeal to young professionals seeking career advancement and financial stability.
• Lifestyle and amenities: Access to desirable amenities, such as outdoor recreation, cultural experiences, and educational institutions, also plays a role in attracting young and rich households.

States With Largest Outflow of Young & Rich

While some states are experiencing an influx, others are witnessing an outflow of young and rich households. These states may be facing higher taxes, a cost of living, or a lack of economic opportunities that are driving residents to relocate.

• California, known for its high cost of living and taxes, experienced the largest exit of young and rich households, with more than 3,000 departures.
• Illinois also saw a significant outflow, with 1,323 young and rich households relocating out of the state.

Impact of Migration on States

The migration patterns of young and rich households can have a significant impact on the states involved. The influx of high earners can boost local economies, while an outflow can lead to a decline in tax revenues and a decrease in spending power.

• States like **Florida** and Texas are benefiting from the influx of young and rich households, experiencing economic growth and increased tax revenue.
• States like California and Illinois, on the other hand, are facing the challenges of a declining population of high earners, leading to potential strain on their economies.

Top 10 States With the Most Net Migration of Young and Rich Households

This table presents the top 10 states that gained the most young and rich households in 2022, according to SmartAsset's data. It includes information on net migration, inflow, outflow, total tax returns filed, and average AGI of young and rich households in each state.

Rank	State	Net Migration	Inflow	Outflow	Total Tax Returns	Average AGI
1	**Florida**	1,786	3,870	2,084	33,456	$526,273
2	Texas	1,660	5,036	3,376	65,904	$405,215
3	Colorado	720	2,137	1,417	19,911	$389,859
4	North Carolina	521	1,815	1,294	18,817	$375,057
5	Washington	383	3,471	3,088	50,509	$389,713
6	South Carolina	372	771	399	6,120	$370,613
7	Tennessee	347	1,051	704	10,438	$451,633
8	New Jersey	300	3,435	3,135	35,294	$388,643
9	Arizona	192	994	802	10,992	$518,274
10	Nevada	162	626	464	4,764	$731,304