A growing number of Americans migrated from predominantly blue states like California and New York to red states with lower taxes last year.
Although the entire U.S. population as a whole grew by just 0.1% between July 2020 and July 2021 – a record low – the Census data underscores major differences in population growth at the state level. For instance, New York, which has one of the highest tax burdens in the nation, saw its population decline by 1.8% between March 2020 and July 2021. But Idaho, with one of the lowest tax rates, actually saw its population size grow by 3.8%, belying the national trend.
In all, the average combined top marginal state and local income tax rate was just 3.5% for the top one-third of states for population growth. For the bottom one-third of states that saw their population decline, including Washington, D.C., the average combined top marginal state and local income tax rate was 7.3%.
Fort Collins, Colorado, USA - February 19, 2014: U-Haul moving vans in Fort Collins. U-Haul is an American equipment rental company founded in 1945. People can rent trucks among other things and move their belongings.
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