Rich Young Professionals Flee New York By The 1000s: Here’s Why
You don’t need me to tell you that COVID lockdowns have changed business forever by dragging remote work into the mainstream. Working remotely means that if you have a wifi connection, you can work from just about anywhere these days. This means young professionals can set up shop in any state that catches their fancy.
And why wouldn’t they want to be in New York? Right here in the center of everything. If you’re young and have lots of income, wouldn’t this be an ideal state to live in? Well, new data suggests that the new generation isn’t flocking to be in NYC or even Upstate – actually, they’re trying to get out of here as fast as they can.
Make The Money And Run
SmartAsset dug into IRS data from 2019 and 2020 tax returns. They looked for anyone under the age of 35 that made at least $100,000 per year that had moved states. Calculating the outflow with the inflow, SmartAsset figured out which state had the most rich young professionals leave. Guess who was number 1?
New York had the biggest exodus, with 28,741 young professionals fleeing and only 12,953 moving in - a net loss of 15,788. California had the second largest loss. SmartAsset found that two particular states took in the most young, rich, former New Yorkers, and it’s not too hard to guess why.
Who Took In The Most And Why?
Everything’s biggest in Texas, including the influx of rich young professionals – 15,0224 moved in, while only 11,201 left. A grand net positive of 3,823. Florida took in the second-most at 3,411 net. Reasons for leaving were mostly economic. According to Better Homes and Garden’s HomeCity, New York is 21.9% more expensive in cost of living than Texas.
Texas and Florida are two of the seven states without a personal state income tax. New York Income Tax for a single person making $100,000 would be 5,803. New York also has an additional tax for anyone with an adjusted gross income over 107,650. There’s not much of a benefit in sales tax either; while Florida adds 6% and Texas tacks on 6.25%, New York state sales tax is 4%.