More Millionaires Are Leaving New York For Florida And Texas, State Loses $11 Billion In Revenue

New York is losing some of its wealthiest residents, and the state budget is feeling it. A new study by the Citizen Budget Commission (CBC) has found that New York saw a dramatic exodus of millionaires in recent years, leading to an estimated $11 billion loss in tax revenue. The millionaires are now taking their businesses to other states, with Florida and Texas emerging as the biggest beneficiaries. Those states have no state income tax, which makes them especially attractive to wealthy filers looking to reduce their tax bill.

Notably, the report comes amid renewed debate over New York City mayoral candidate Zohran Mamdani's proposal to raise taxes on the wealthy.

As per the study, New York's share of the nation's millionaires fell from 12.7% in 2010 to 8.7% in 2022—the steepest decline of any US state. Although the number of millionaires in New York increased by about 34,000 during that period, states such as Florida, Texas and California recorded much faster growth.

"New York's declining share of high-income taxpayers has meaningful consequences. Had New York maintained its share of the nation's millionaires over the past decade, personal income tax collections would have been substantially higher - roughly $10.7 billion more in tax year 2022," the analysis states.

High Taxes, Cost of Living Cited

The report says New York has lost more residents to every other state than it has gained, with high taxes and the rising cost of living driving migration. New York currently ranks last in competitiveness among US states, according to the Tax Foundation. Experts cited in the report also blamed policies such as higher income taxes, expanded Medicaid spending, stricter rent regulations and green energy mandates for increasing costs.

"Without reforming the tax structure, New York won't be competitive for attracting population and business. Wall Street is the golden goose. But for how long?" Abir Mandel, senior state policy analyst with the Tax Foundation, said.

Mamdani Rejects Concerns

Responding to the report, Zohran Mamdani dismissed fears that higher taxes would trigger a mass exodus of wealthy residents. He argued that previous tax increases did not reduce the number of millionaires in New York and said the city's wealthiest residents should contribute more to help address poverty and improve affordability.

“I've been very clear about the fact that we live in the wealthiest city in the wealthiest country in the history of the world, and it's unacceptable that one in four New Yorkers are living in poverty, and I believe that the wealthiest can do a little bit more to ensure that everyone can afford to live here,” he said.