Wealthy millennials are flocking to these 10 states

Looking at income tax rates in New York and the median cost of a one-bedroom apartment with no natural light, it’s no wonder those with means are flocking elsewhere.

Florida and Texas, which have no state income tax at all, are the No. 1 and No. 2 immigration destinations for high-income millennials, according to a new survey. Smart Asset Analysis. Using data from the IRS and the 2021 tax year, SmartAsset measured net immigration patterns (inflows minus outflows of new top earners) among young professionals ages 26 to 35, bringing in at least $200,000 a year. Florida had a net gain of 2,175 in this group; Texas had a net gain of 1,909.

Meanwhile, New York and California, the largest U.S. economies, saw the biggest net losses among young high-income earners, 5,062 and 4,495, respectively. But they’re not exactly hungry for young blood, as those two states are still home to the youngest high earners by a wide margin.

None of this should come as a surprise if you’ve heard the anecdote that Florida and Texas have become the largest states in the United States. new york and california During the pandemic, remote workers left cramped city apartments. These two southern states offer year-round warm weather, plenty of open space, and (of course) no income tax — ideal for young earners focused on saving and contributing to retirement accounts first. That makes these states enduring ideal locations for those who don’t have to commute to a Manhattan or San Francisco office to earn a hefty salary.

Randy Ryerson, vice president of marketing and communications at truck rental company Penske, said remote work “opens the door for more people to get out of the workplace and explore life in new areas.” wealth last year.

Of course, some workers may have followed their companies there as well. New York-based traditional financial giants such as Blackstone and Goldman Sachs, open and Expand Miami Officewhile tech giants like Tesla and Oracle leave golden state for lone star. More Fortune 500 companies are currently headquartered in Texas than any other state, with Houston the most popular headquarters city. The average cost of living in Texas is just over $45,000, Study in 2022 Discovered by the Commerce Department’s Bureau of Economic Analysis. That’s $8,000 less than Fortune 500 headquarters in California and New York, wealth’the s Paul Confino reports.

SmartAsset’s rankings also reflect Florida’s continued dominance throughout the decade. It may even be as attractive to young workers as it is to retirees.After all, Florida has a Unemployment rate 2.7%, which is lower than the national interest rate of 3.5%, and there is more room for funds. “I really like the amenities here, like the pool, the gym, the things you don’t get at home,” said Harshneel More, a 30-year-old software engineer who moved to Tampa from San Francisco in 2021. And kept Bay Area wages—Tell tampa bay times.

But Packing Henry (short for high earner, not yet rich) isn’t just headed south, where four of SmartAsset’s top 10 states are located. They also fled to New Jersey, which absorbed 1,048 newly rich young professionals, and Connecticut, which absorbed 660 newly rich young professionals. The popularity of the tri-state area suggests that many remote workers won’t travel very far and will move out of the cities and into cheaper locations. location but still within commuting distance of the office. Washington State ranked seventh with a net increase of 464, and had the highest percentage of young high earners; more than 13 percent of state residents earning more than $200,000 a year were between the ages of 26 and 35.

Here are the top 10 cities for young professionals to move to (ranked by net gain):