Strong trend of Americans moving to low-tax states in 2024

Recent migration data from the US Census Bureau, U-Haul, and United Van Lines reveal a strong trend of Americans moving to low-tax states in 2024.

South Carolina saw the highest population growth from domestic migration, up 1.26%, followed by Idaho (0.83%) and Delaware (0.79%). On the opposite end, Hawaii experienced the largest population decline at -0.65%, with New York and California not far behind at -0.61%. This trend reflects an ongoing preference for states with lower tax burdens and cost-of-living advantages, a phenomenon further amplified in the post-pandemic era of remote work flexibility.

States with lower or no income taxes continue to attract significant inbound migration. In the top third of states for migration growth, the average top marginal income tax rate is 3.5%, while in the bottom third, it’s notably higher at 6.7%. Notable examples include Florida, Texas, and Tennessee, which levy no income taxes and consistently rank among the most popular destinations. In contrast, states like California, New York, and New Jersey, with double-digit income tax rates, face persistent outbound migration.

U-Haul and United Van Lines data align with Census figures, showing states like South Carolina, North Carolina, and Florida dominating inbound moves, while high-tax states like California, Massachusetts, and New York remain migration losers. These patterns highlight how both individual and corporate location decisions increasingly weigh tax competitiveness.

Remote work and hybrid flexibility have further empowered Americans to prioritize lifestyle and financial considerations when choosing where to live. Many states are responding to this competitive environment by revising tax codes to appeal to mobile workers and businesses. However, high-tax states that rely on large local tax burdens risk compounding losses if reforms are not enacted. Policymakers must also consider regional purchasing power differences, as nominal dollar values do not account for cost-of-living variances across states.

This ongoing migration underscores a critical lesson for state governments: standing still in the face of growing interstate competition is not an option. Failing to address tax structure inefficiencies could deepen outflows, erode local economies, and reduce overall competitiveness. As migration patterns reveal clear preferences for lower-tax environments, state leaders must act to modernize their policies to remain economically relevant.

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