AUSTIN (KXAN) — Texas is No. 2 when it comes to where high-earning households are moving, according to a recent study. States were ranked by the net inflow of households earning $200,000 after accounting for those that moved into and out of the state.
SmartAsset, a financial technology company, said IRS data from the 2021-2022 tax year showed more than 8,000 households earning $200,000 annually or more came to Texas.
“When high earners move, they take their money with them. And because their budgets are much larger than most of the population, they can have an outsized effect on the local economy,” the SmartAsset said. “Thus, states that attract high-earning households can gain an economic advantage over others.”
The study continued by saying some factors that could drive high earners to move across state borders included:
According to the study, the IRS data showed an inflow of 25,931 high earners and an outflow of 17,671 high earners, meaning Texas gained 8,260 high-income households.
Further information from SmartAsset showed the adjusted gross income (AGI) for high earners moving to Texas was $579,207, while the AGI for high earners moving out was $370,986.
According to the study, the remaining states in the top five were Florida, North Carolina, South Carolina and Arizona.
Data showed Florida took the top spot by a significant amount, gaining nearly 30,000 high-income households — 21,451 more high-earners than those who moved to Texas.
The study said North Carolina had a net gain of 5,792 high-earning households, while South Carolina followed behind with 5,270.
Arizona took the fifth spot with a net inflow of 4,365 high-earning households, according to the study.
SmartAsset said the top five states that lost the most high-income households included: California, New York, Illinois, Massachusetts and New Jersey.
