By Jorge Vazquez
Aug 31, 2023, 07:00 AM EDT
To track which states America’s wealthiest young professionals are moving to, SmartAsset examined the most recent migration data from the Internal Revenue Service (IRS).
The financial site determined which states get the most young professionals, ages 26 to 35, making at least $200,000 per year in adjusted gross income, based on the most recent publicly available IRS numbers from 2021.
“People with high incomes can account for a disproportionate amount of tax revenue. For people ages 26 to 35, only 2% of tax returns filed show income of $200,000 or more,” the SmartAsset report says. “Despite their small size, this cohort actually accounts for 16% of income for this age group, a huge tax base that can hit local business and government revenue.”
According to the data, Florida and Texas gain the most for high-income youth, while New York and California lose the most.
Florida gained a total of 2,175 high-income earners ages 26-35 after accounting for both inflows and outflows, while Texas gained a net 1,909.
Despite the losses, New York (-5,062) and California (-4,495) still have the highest number of high-income youth of any state by a wide margin.
While top earners have generally left New Jersey, wealthy young people are flocking there. Across all age groups, New Jersey lost 2,617 high-income taxpayers in 2021. However, the state gained 1,048 new wealthy young professionals in the same year. This was the most dramatic reversal of aggregate trends.
The highest income earners are the youngest in Washington. Whether compared to the wealthy population of all ages or to the population as a whole, Washington has a disproportionately large number of wealthy youth.
More than 13% of those who earn at least $200,000 in Washington are between the ages of 26 and 35. The state with the second largest population in this cohort is California at 10%. New York, California, Massachusetts, and New Jersey also have particularly high rates of high-income youth.
Despite the losses, Washington DC continues to have a young and wealthy population. DC lost nearly 700 high-income tax filers ages 26 to 35, but still maintains a higher relative population than any state. More than 16% of people who earn more than $200,000 are in that age group.
To consult the complete list and details on the methodology used, enter here.
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