Illinois is third in the country for losing the most affluent residents to other states, a new study shows.
Using migration patterns between 2019 and 2020, personal finance website SmartAsset found that only California and New York lost more residents that made $200,000 or more. According to the data, Illinois experienced a net loss of 8,044 high-earners during that period.
The report notes that movement of high-earners can have a significant financial impact on a state. When a state loses more high-earning tax filers than it gains in a given year, tax revenues may decline and the state’s fiscal situation may worsen.
“Fewer people can generally lead to less economic activity and shrinking tax bases and that can, in turn, limit state revenue collections,” Joanne Biernacka-Lievestro from Pew Charitable Trusts said.
The places with the largest outflow of high-earning households have some of the highest tax burdens in the country. Illinois has the 10th highest tax burden in the country at 9.7%.
Florida has the lowest tax burden at 5.7% and gained 20,000 high-earners, the most of any state. Texas was second on the list, followed by Arizona, North Carolina and South Carolina.
The SmartAsset report said it is worth noting that people in places with higher tax burdens also tend to get paid more. Most of the states with the largest outflow of high-earners have median household incomes of $74,000 or more, well above the national average.
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