A new report from Redfin indicates that states with lower taxes are attracting people from all over the country. Over the last eight years, an average of four people moved into low-tax states from other parts of the country for every one person who left, the report estimates.
Florida had the seventh-lowest tax rate in the country and saw seven people move in for every person who left. Florida gained more residents than all but four states between 2013 and 2020.
Realtors attribute this to Florida having no state income tax and the opportunity for beachfront living. Redfin analyzed migration to and from the 48 contiguous U.S. states during the eight-year time frame. The migration trends correlate with rates of sales tax, income tax, and property tax in 2020.
Redfin agent Heather Kruayai observes, “Competition and prices are up and supply is down this year, partly due to those out-of-state buyers who sold homes in expensive markets and are buying homes using cash in Florida.”
Meanwhile, New York lost more residents than any other state; for every eight people who left, only one person moved in.