Millionaire Populations Grew in Progressive Tax States

IRS data suggests that high-net-worth households often stayed in states despite tax increases.

Updated on Sept. 23, 2026 in Taxes

Isometric editorial illustration featuring a stack of bronze discs and a geometric glass weight, representing economic growth and fiscal stability. — IRS data reveals that millionaire populations continued to grow in several states that recently enacted progressive income tax increases. AI Illustration. Upload story photo >

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Do you believe higher taxes on the wealthy cause millionaires to move to other states?

Recent IRS data through 2023 indicates that the number of millionaires grew in states with progressive tax systems. This trend persisted even after states like New York implemented higher tax rates on high-income earners.

Why it matters

The findings challenge assumptions that high-net-worth residents consistently relocate to lower-tax jurisdictions to preserve wealth. Understanding these mobility patterns can help households evaluate the long-term impact of state fiscal policies on their financial planning.

New York recorded 84,366 millionaires in 2021, an increase from 57,126 in 2016. In contrast, California saw only 138 high-net-worth individuals leave following a 2013 tax increase, representing just 0.04% of that group.

The players

Internal Revenue Service

The federal agency that administers tax laws and maintains the Statistics of Income database.

Fiscal Policy Institute

A research organization that analyzed IRS data regarding millionaire population trends.

The details

Data from the Fiscal Policy Institute shows that New York's millionaire population reached 84,366 in 2021, even after the state raised taxes on incomes over $1 million and expanded a mansion tax on property sales above $1 million. A Stanford-led study of California after a 2012 tax increase found that only a tiny fraction of high-net-worth residents moved, suggesting that tax policy alone may not dictate where these households choose to live.

1987: Colorado switched to a flat income tax system.
2010: Beginning of the period showing growth in millionaire populations.
2013: High-net-worth Californians moved following a tax rate increase.
2021: New York raised taxes on million-dollar earners.
2023: The most recent year of available IRS tax data.

Money Landscape

This analysis updates historical perceptions regarding the relationship between state progressive tax systems and high-net-worth mobility. It suggests that tax policy is one of many variables in the broader economic cycle affecting where affluent households choose to maintain residency.

When evaluating state tax changes, residents should consider their broader financial footprint rather than focusing solely on top-tier tax rates. You may wish to consult with a qualified tax professional to understand how local policy shifts might impact your long-term wealth strategy.

The takeaway

Recent data suggests that high-net-worth households often remain in states despite shifts to progressive tax structures. Keep an eye on local tax policy debates and consider reviewing your state's tax legislation with a professional during your annual financial planning review.