Taxes and Interstate Migration: 2024 Update

September 3, 2024
By: Andrey Yushkov

Every year, millions of Americans pack up and move from one state to another, providing unique insights into what people value when deciding where to live, work, do business, and raise a family. For many years, policymakers, journalists, and taxpayers have debated the role state tax policy plays in individuals’ and businesses’ location decisions. Annual data about who is moving—and where—provide clues about the factors contributing to these moves.

Many factors influence an individual’s or family’s decision to move from one state to another: employment or educational opportunities, proximity to family or friends, and geographic and lifestyle preferences like weather, natural landscape, and population density, to name a few. Cost-of-living considerations, including tax differentials, may not be the primary reason for an interstate move, but they are often one of several factors people consider when deciding whether—and where—to move.

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Click here to read the full article from the Tax Foundation.