The ‘young and rich’ are moving to Texas, study says
AUSTIN (KXAN) — Data collected from the Internal Revenue Service showed Texas as a top destination for many affluent young people, according to a recent study.
SmartAsset, a financial technology company, said it used the IRS data to rank states by the net inflow of young and rich households, which it classified as those aged 26 to 35 and earning at least $200,000.
The company said reasons for relocation could include:
- better jobs
- lifestyle upgrades
- tax advantages
- new experiences
- friendships and relationships
According to SmartAsset, the outcome of the moves often impacts local economies and politics, specifically housing, employment and voting.
Findings from the study showed Texas and Florida attracted more than twice the number of young and rich households when compared to other states.
“Florida had the biggest gain at 1,786 households. Texas ranked second with a net gain of 1,660 young and rich households,” the study said.
Another key point was that half the 10 top states attracting young and rich households do not charge a state income tax. Those states include:
- Florida (net gain of 1,786 young and rich households)
- Texas (1,660)
- Washington (383)
- Tennessee (347)
- Nevada (162)
“High-earning households have the most to gain when it comes to minimizing income taxes,” the study said.
Data showed Texas lost 3,376 young and rich households while gaining 5,036. The average adjusted gross income for the households in the state was $405,215, according to the study.
The two states that lost the most young and rich households were California, which lost 3,226 young and rich households, and Illinois, which lost 1,323.
“The outflow was worth approximately $5.1 billion in taxes,” the study said.