New IRS migration figures show a clear pattern: South Carolina is the fastest-growing state per capita, while Texas and Florida still bring in the largest numbers of new residents overall, and costly, Democrat-led states are losing both people and income. The data points to a southward shift driven by taxes, jobs and quality of life, with money and talent moving with the families who make these choices. This piece lays out the numbers and the practical consequences for states gaining and losing population and income.
South Carolina’s rise is striking on a per-person basis, with inflows equal to just over 1% of the population and more than 59,000 new residents coming in from other states between 2022 and 2023. That per-capita surge means for roughly every 100 people already in the state, one more arrived from somewhere else, reshaping towns and labor markets. Those aren’t vague estimates; they’re concrete moves that translate into real demand for housing, services and workers.
THIS STATE ISN’T JUST GROWING — ITS ECONOMY IS GETTING RICHER PER RESIDENT reads as a blunt reality check for state policymakers who think size alone guarantees prosperity. South Carolina didn’t just pick up bodies; it added tax filers and income that can power local economies. Policymakers on both sides should pay attention: the winners are attracting people and the tax base that supports schools, roads and businesses.
The inflow into South Carolina included more than 29,000 new tax filers and brought roughly $4.1 billion in reported income, numbers that matter because they change the fiscal math for counties and cities. New residents arrive with spending power and skills, filling open roles in manufacturing, healthcare and tech-adjacent industries that have been hungry for labor. Local businesses get customers and employees; local leaders get breathing room to invest rather than scramble to plug budget holes.
Meanwhile, the biggest overall gains by state still go to the big players: Texas led the country with 56,473 new tax filers in 2023, and Florida followed with 55,349. Those raw totals reflect population scale more than per-capita momentum, but they add real heft to regional economies and make those states magnets for firms looking to scale. Size plus favorable tax and regulatory climates creates a feedback loop: more people, broader markets, more job creation.
On the flip side, America’s most expensive, often Democrat-run states are losing ground. California shed more than 100,000 tax filers and New York dropped nearly 72,000 between 2022 and 2023, departures that also carried big paychecks with them. The income losses are dramatic: California reportedly saw about a $12 billion decline and New York about $10 billion, signaling that talent and tax dollars are voting with their feet.
CALIFORNIA’S LOOMING CAPITAL FLIGHT PROBLEM COULD RESHAPE STATE IN 3 KEY AREAS is a headline that captures the policy consequence: when the highest earners leave, the budget picture shifts and the cost of maintaining services can rise for those who stay. That dynamic forces difficult choices—raise taxes, cut services, or reform—and voters in the departing states are effectively handing momentum to places that ran a different playbook. For Republicans, this is clear evidence that lower taxes and friendlier business climates attract people and economic energy.
What this migration means in practice is a redistribution of people and economic power toward states that have been more welcoming to growth. New residents bring demand for housing, schools and infrastructure while adding to the tax base in places like South Carolina, Texas and Florida. Over time, these shifts can affect labor markets, state revenues and even the political landscape as newly minted residents put down roots and influence local priorities.
If this pattern continues, expect political and economic consequences to deepen: states that attract newcomers will have more momentum to invest and compete, while those that lose residents and income face harder choices about services and taxes. The movement is straightforward—people vote with their feet for lower taxes, more opportunity and a better quality of life—and the results are visible in IRS migration and income numbers that policymakers ignore at their peril.
Graduate Student, wife, engaged political and legal writer.