Millennial moneymakers are on the move, and wherever they may go, public and private businesses are profiting, according to a new study by SmartAsset.
Only 2% of millennials filed an income tax return of $200,000 or higher for the 2021 tax year, according to the IRS. But this category of tax filers actually comprises 16% of the income among all millennials, indicating the impact these young investors can have on local businesses and government revenues in states they call home.
To track where these rich, young professionals and their high-earning families are moving, SmartAsset examined IRS migration data for 2021, the most recent tax year available, using the adjusted gross income of at least $200,000 or higher earned by tax filers ages 26 to 35 as a measurement of wealth. SmartAsset then ranked all 50 states and the District of Columbia according to both the inflow and outflow of their movements across state lines to determine which were magnets for Millennial money.
Here, in ascending order, are the top 10 states to which the young and rich are moving.
10. South Carolina
South Carolina reported an inflow of 601 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 283. The state reported a net migration of 318.
9. Arizona
Arizona reported an inflow of 832 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 511. The state reported a net migration of 321.
8. Tennessee
Tennessee reported an inflow of 868 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 427. The state reported a net migration of 441.
7. Washington
Washington State reported an inflow of 2,660 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 2,196. The state reported a net migration of 464.
6. Connecticut
Connecticut reported an inflow of 1,404 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 744. The state reported a net migration of 660.
5. North Carolina
North Carolina reported an inflow of 1,476 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 755. The state reported a net migration of 721.
4. Colorado
Colorado reported an inflow of 1,681 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 927. The state reported a net migration of 754.
3. New Jersey
New Jersey reported an inflow of 3,311 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 2,263. The state reported a net migration of 1,048.
2. Texas
Texas reported an inflow of 4,048 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 2,139. The state reported a net migration of 1,909.
1. Florida
Florida reported an inflow of 3,391 new residents, ages 26 to 35, earning $200,000 or more annually, and an outflow of 1,216. The state reported a net migration of 2,175.
To view all state rankings in this study, please go to https://smartadvisormatch.com/data/where-young-rich-move-2023.
