California Lost More Than $300 Million in Tax Revenue From Wealthy Residents Moving: Study

For the third straight year, the state of California has experienced a decline in population, according to U.S. Census Bureau data, and many of those packing up and heading east are some of the state’s wealthiest.

A study of IRS Migration Data by an online real estate portal found that no state experienced a larger loss of tax income from migration than California.

The study, conducted by MyEListing.com, found that California lost more than $340 million in 2021 IRS tax revenue due to residents moving.

While about 40% of Californians have previously indicated that they had “seriously considered” leaving the Golden State, mainly due to cost of living, the migration of high-earners from California is a bit more mysterious.

“Despite its numerous attractions … beautiful landscapes and cultural richness, California’s high personal income tax rates seem discouraging for many high-wealth individuals. This, coupled with the state’s high cost of living, will likely fuel a wealth migration out of California,” the website wrote in its analysis.

California is the entertainment capital of the world as well as home to Silicon Valley, but it appears some of the highest earners no longer need to keep their California residency to maintain their careers and businesses.

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