High costs and taxes are pushing more moves out of New York and California

New York and California feel the squeeze

When bills keep climbing, people start doing hard math. For many families in New York and California, that math now includes rent, taxes, child care, insurance, and whether staying put still makes sense.

The bigger point is this story feels so personal. New York and California remain economic giants, but both have also seen residents move elsewhere as people chase lower costs, more space, and a little breathing room in their budgets.

New York and California see movers leave

New York and California are not emptying, but the movement is real. IRS tax return migration data for 2022 to 2023 and recent Census estimates both point to continued net domestic outmigration from New York and California, even as international migration adds residents.

That matters because migration is not just about headcount. When households leave, they also take spending, tax payments, and future business activity with them, reshaping local economies in visible ways.

Both the cities cost more day to day

For many movers, the issue starts with everyday costs. BEA price data shows California had the highest overall price level in 2024, and the New York metro area also came in well above the U.S. average.

Housing is often the biggest pressure point. When rent or mortgage costs rise faster than pay, even high earners can start looking at cheaper states with fresh interest and fewer tradeoffs nearby.

Taxes add to the pressure

Taxes are only one part of the story, but they still matter. California has the highest top marginal state individual income tax rate, and New York’s top rate is also among the highest. New York City residents can face an additional local income tax.

That does not mean every family moves solely for tax reasons. But for higher earners, business owners, and retirees, state tax differences can become another reason to compare options beyond familiar routines for many households.

Fun fact: Tax Foundation data lists New York’s top state individual income tax rate at 10.9%.

California shows the push and pull

California shows how mixed this picture can be. Census estimates show California had a net domestic migration loss of nearly 230,000 between July 2024 and June 2025. In the prior year, international migration was large enough to offset domestic losses, but it fell sharply in the next estimate period.

So the story is not simply collapse or boom. It is a push-and-pull, with California still attracting newcomers while also seeing many residents leave for lower-cost places around the country each year.

New York’s story has two sides

New York tells a similar story with a different feel. Census place estimates show New York City added residents between 2023 and 2024, even while New York State continues to post net outflows in IRS migration data.

New York’s tax department says the 2022 to 2023 net outflow of returns was concentrated among filers ages 26 to 44. That is a key group because it includes workers, parents, renters, buyers, and many households making long-term decisions.

Fun fact: New York’s tax department reports that 1.99% of tax returns had an out-of-state address update in 2024, down from the higher rates in 2020 and 2021.

Lower-tax states keep drawing interest

Where are people going? States like Florida, Texas, Tennessee, and Nevada keep coming up because they pair warmer weather or job growth with no broad state tax on wage income for many households.

That does not make them cheap in every category. Housing and insurance can still sting in some fast-growing markets, but the overall package can look appealing when families compare total monthly costs instead of one bill at a time.

Housing may be the biggest driver

Housing deserves its own spotlight because it can outweigh almost everything else. California’s Legislative Analyst’s Office says housing costs in California have long been higher than the national average.

Once housing takes too much of a paycheck, small cost increases elsewhere hit harder. People may love their city, their friends, and their routines, but the monthly budget can still force a different answer in the end.

Remote work changed the map

Work patterns changed the map, too. Remote and hybrid jobs made it easier for some people to keep big-city pay while living in places with lower housing costs, lower taxes, or shorter commutes.

That shift did not affect everyone the same way. For some households, it turned long-running cost frustrations into actual moving plans and real address changes nationwide, recently too.

Big states still keep their pull

Businesses notice these shifts because workers and employers often move for related reasons. Tax rules, office costs, housing, and talent pipelines all shape where companies expand, hire, or shrink their footprint over time.

Still, it is important not to oversimplify. New York and California continue to attract talent, investment, and immigrants, which is one reason both states remain major economic centers even as they lose residents to domestic migration each year.

Most moves are about real life

The people who leave are not always making a political statement. Many are making practical choices about childcare, home prices, commute times, and whether a paycheck stretches far enough to build a stable future.

That’s part of why this topic resonates well beyond politics. It speaks to a simple question many Americans ask at the kitchen table: Can we still afford the life we are trying to build right here, in this place?

There is no single reason

There is no single villain in this story. High housing costs, taxes, remote work, interest rates, and lifestyle goals all mix, and each household weighs them a little differently before deciding to stay or go.

That makes the migration story more complicated than a slogan. But it also makes it more relatable, because the choice often comes down to ordinary families trying to make tough numbers work in an expensive era for everyone.

That is why so many families are looking at the math more closely than ever. See why a House bill could create tariff rebate payments based on tax filing status.

The math keeps driving the moves

What happens next will depend on whether costs cool, housing expands, and wages keep up. If daily life stays this expensive, New York and California may keep losing residents to states that offer a simpler monthly math problem.

Even so, both states still have enormous pull. The real story is not that people stopped wanting New York or California. It is that for many households, wanting them and affording them have become very different things.

That is why affordability keeps driving the conversation in ways few leaders can ignore. See why New York’s next mayor may face a choice between taxing the rich and raising property taxes.

Do you think high costs are pushing too many people to leave these states behind? Share your thoughts and drop a comment.

This slideshow was made with AI assistance and human editing.

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