Residents cited a number of reasons for relocating, including a high tax burden and expensive housing and health care costs. Widespread remote work policies have also made it easier for residents to pack up and leave, contributing to the growing exodus of prime-age workers. “Move-to states ranked significantly better in three drivers; lower income taxes, cost of housing and cost of healthcare,” the study said.
Top Destinations for Relocating Residents
Florida and New Hampshire were among the top destinations for residents fleeing the state. Florida does not have an income tax, while New Hampshire has a flat rate of 4% that it levies only on interest and dividend income. Other popular destinations include Maine, North Carolina, and Texas. About half of the residents who left Massachusetts remained in New England.
“Migration patterns are driven by citizens voting with their feet, a report card on how well a state is doing to meet their needs,” the report said. “Each year, millions of Americans move from one state to another. Movement can happen for numerous economic and non-economic reasons. Growing costs in a state can make it unattractive to individuals, families, and businesses.”
Census data suggests that Massachusetts is part of a broader trend, in which residents are moving from higher-tax states to states with lower taxes.
Broader Migration Trends
In 2023, New York, California, Hawaii, Alaska, and Illinois lost the most residents as a share of their population, while South Carolina, Delaware, North Carolina, Tennessee, and Florida saw the greatest population increase, according to a Tax Foundation analysis of Census data.
“This population shift paints a clear picture: Americans are leaving high-tax, high-cost-of-living states in favor of lower-tax, lower-cost alternatives,” the Tax Foundation, a group that advocates for lower taxes, said in a blog post.
