Editor’s Note: This story originally appeared on SmartAsset.com.
Taxpayers with higher adjusted gross incomes (AGIs) are prone to this move less than fillers with lower AGIs. This may be due to a variety of reasons, including the fact that taxpayers in the higher income brackets are often older or more established in their careers.
Whatever the cause, IRS migration data show that approximately 3% of AGI applicants between $ 10,000 and $ 50,000 moved to another country from 2018 to 2019.
By comparison, 2.26% of taxpayers with an AGI between $ 100,000 and $ 200,000 moved across state borders in the same years. Although people with higher incomes may be less likely to migrate countries in general, some countries still observed a relatively large influx of this demographic group.
In this study, SmartAsset looked in more detail at where upper-middle-class people with an AGI of between $ 100,000 and $ 200,000 are moving.
Using IRS migration data from 2018 to 2019, we compared the inflows and outflows of upper middle class people for each country and Washington, DC. We ranked cities according to the net migration of upper middle class employees.
To learn more about our approach, read the Data and Methodology section at the end. This is our third annual study of countries where upper-middle-class people are migrating. Take a look at ours Issue 2020 here.
They are followed by the countries to which the upper middle class will move in 2021.
Between 2018 and 2019, there was a net migration of approximately 19,200 upper-middle-class taxpayers to Florida.
As a result, about 1.1 million upper-middle-class people reported taxes in 2019, representing 12.85% of all Florida fillers.
Without state income tax, Texas has been a hot spot for the upper middle class for the past few years.
Lastly, there was a net migration of 8,700 upper middle class people to the country from 2018 to 2019.
About 17,300 upper-middle-class people moved to Arizona between 2018 and 2019, while about 10,100 left.
In total, there were almost 7,200 net migrations of upper middle class people.
4. North Carolina
Between 2018 and 2019, the net migration of high-income taxpayers to North Carolina was 5,395.
As a result, upper-middle-class investors accounted for 14.28% of all North Carolina taxpayers in 2019.
5. South Carolina
South Carolina closely follows North Carolina as a country where upper-middle-class people migrate.
From 2018 to 2019, more than 11,600 applicants with AGIs between $ 100,000 and $ 200,000 moved to the country, while about 6,500 left. The total net migration was 5,096.
Like the other two states in our top five – Florida and Texas – Tennessee does not tax wages and earnings, which means upper-middle-class employees may be able to increase their savings rates.
About 11,200 upper-middle-class people moved to Tennessee between 2018 and 2019, while fewer than 7,800 left. In total, the net gain of the upper middle class was 3,409.
With a net migration of 3,321 upper-middle-class people, the state of Washington has the highest percentage of all the top ten countries on our list to which upper-middle-class people move.
According to the IRS for 2019, 19.70% of investors earn between $ 100,000 and $ 200,000 a year.
Idaho fell one place in this year’s study after being 7th in our 2020 study.
Despite lagging behind Washington this year, data on IRS migration shows that net migration of upper-middle-class people to Idaho actually increased between 2017–2018 and 2018–2019.
From 2017 to 2018, there was a net migration of 2,708 people of the upper middle class, compared to the net migration of 2,887 people from 2018 to 2019.
According to IRS migration data for 2018-2019, about 7,700 upper-middle-class people moved to Nevada, while fewer than 5,400 left.
In total, the net migration of the upper middle class to Nevada was 2,360, the ninth highest in our study.
Colorado completes our list of the top 10 states where upper-middle-class people are migrating.
Between 2018 and 2019, more than 14,400 upper-middle-class people moved to the country, while fewer than 12,400 left.
In 2019, more than 18% of taxpayers earned between $ 100,000 and $ 200,000, the 12th highest rate in all 50 states and DC
Data and methodology
The data for this study are based on IRS migration data for 2018–2019. To find out where upper-middle-class people are moving, we found inflows and outflows for people earning between $ 100,000 and $ 200,000 for each state and Washington, DC.
We then calculated the net migration number for upper middle class applicants and ranked all 50 countries and Washington, DC accordingly.
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