Tuesday, January 18

Where will upper-middle-class people move in 2021


Upper middle class couple
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Editor’s Note: This story originally appeared on SmartAsset.com.

Taxpayers with higher adjusted gross income (AGI) tend to move less than taxpayers with lower gross income. This may be for a number of reasons, including the fact that taxpayers in the higher income brackets often lean toward age or are more established in their careers.

Regardless of the cause, IRS migration data shows that approximately 3% of taxpayers with AGIs between $ 10,000 and $ 50,000 moved to a different state from 2018 to 2019.

By comparison, 2.26% of taxpayers with adjusted gross income between $ 100,000 and $ 200,000 moved across state lines during the same years. Although people with higher incomes may be less likely to move out of state overall, some states have still seen relatively large inflows from this demographic.

In this study, SmartAsset took a closer look at where upper-middle class people with adjusted gross incomes between $ 100,000 and $ 200,000 are moving.

Using IRS migration data from 2018 to 2019, we compared the inflows and outflows of upper-middle-class people for each state and Washington, D.C. We rank places based on the net migration of upper-middle-class wage earners.

To learn more about our approach, read the Data and Methodology section at the end. This is our third annual study of the states where upper-middle class people move. Take a look at our 2020 edition here.

Below are the states that upper-middle class people will move to in 2021.

1. Florida

St. Pete Beach, Florida
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Between 2018 and 2019, there was a net migration of approximately 19,200 upper-middle-class taxpayers to Florida.

As a result, around 1.1 million upper-middle class people filed taxes in 2019, representing 12.85% of the total. Florida taxpayers.

2. Texas

Houses in Dallas, Texas
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With no state income taxes, Texas has been a hotspot for upper-middle-class people for the past few years.

More recently, there was a net migration of 8,700 upper-middle class people to the state from 2018 to 2019.

3. Arizona

Houses in Phoenix, Arizona
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About 17,300 upper-middle-class people moved to Arizona between 2018 and 2019, while about 10,100 left.

In total, the net migration of upper-middle-class people was almost 7,200.

4. North Carolina

North Carolina Beach Vacation Home
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Between 2018 and 2019, the net migration of high-income taxpayers to North Carolina was 5,395.

As a result, upper-middle class taxpayers made up 14.28% of all North Carolina taxpayers in 2019.

5. South Carolina

South carolina beach
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South Carolina closely follows North Carolina as a state where upper-middle class people are moving.

From 2018 to 2019, more than 11,600 taxpayers with adjusted gross income between $ 100,000 and $ 200,000 moved into the state, while approximately 6,500 left. In total, the net migration was 5,096.

6. Tennessee

Chattanooga, Tennessee
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Like two of the other states in our top five, Florida and Texas, Tennessee does not tax wages or earnings, which means upper-middle-class people can increase their savings rate.

About 11,200 upper-middle-class people moved to Tennessee between 2018 and 2019, while fewer than 7,800 left. In total, the net migration of upper-middle-class people was 3,409.

7. Washington

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With a net migration of 3,321 upper-middle-class people, Washington State has the highest percentage of all the top 10 states on our list of where upper-middle-class people move.

According to 2019 IRS data, 19.70% of taxpayers earn between $ 100,000 and $ 200,000 a year.

8. Idaho

Boise, Idaho neighborhood
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Idaho dropped one spot in this year’s study, after ranking No. 7 in our 2020 study.

Yet despite falling behind Washington this year, IRS migration data shows that the net migration of upper-middle-class people to Idaho actually increased between 2017-2018 and 2018-2019.

From 2017 to 2018, there was a net migration of 2,708 upper-middle class people, relative to a net migration of 2,887 people from 2018 to 2019.

9. Nevada

Mesquite Nevada
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According to IRS migration data from 2018-2019, about 7,700 upper-middle class people moved to Nevada, while fewer than 5,400 left.

In total, the net migration of the upper middle class to Nevada was 2,360, the ninth highest in our study.

10. Colorado

Woman hiking in mountains
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Colorado rounds out our list of the top 10 states where upper-middle class people move.

More than 14,400 upper-middle class people moved to the state between 2018 and 2019, while fewer than 12,400 left.

In 2019, more than 18% of taxpayers earned between $ 100,000 and $ 200,000, the twelfth highest rate in all 50 states and DC

information and methodology

Man using too much data on his phone, tablet and laptop
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Data for this study comes from 2018-2019 IRS migration data. To find out where upper-middle-class people are moving, we found the entrances and exits of people earning between $ 100,000 and $ 200,000 for each state and Washington, DC

We then calculate a net migration figure for upper-middle class taxpayers and rank the 50 states and Washington, DC accordingly.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links within our stories.