12 States the Young and Wealthy Are Flocking To
Only 2% of Americans ages 26 to 35 have an income of $200,000 or more, but they make up 16% of the income for this age group, SmartAsset said in a new report. As such, they represent an outsize tax base that can fatten the coffers of local businesses and governments.
That also makes this age cohort a group welcomed by officials hoping they will move to their state. SmartAsset examined Internal Revenue Service data for tax year 2021 for the 50 states and the District of Columbia to find out which areas are benefiting the most from the inflow of young, rich professionals.
Researchers found that Washington has a disproportionately high number of respondents ages 26 to 35 who make at least $200,000, followed by California with 10%. New York, Massachusetts and New Jersey also have many young high earners.
At the same time, New York and California have the highest outflows of young, rich professionals, at 5,062 and 4,495, respectively.
The analysis showed that the District of Columbia stands out from the 50 states. Although it lost about 700 young high-earning tax filers, 16% of residents earning more than $200,000 fall into the 26-to-35 age bracket, higher than any state.
See the gallery for the 12 states where the young and rich are moving, according to SmartAsset.