CATO's Freedom Index ranks US States on Personal and Economic Freedom

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"The IRS data show that between 2020 and 2021, 26 states experienced a net gain in income tax filers from interstate migration—led by Florida (+128,228), Texas (+82,842), North Carolina (+40,828), Arizona (+32,636), and Tennessee (+30,292)—while 24 states and the District of Columbia experienced a net loss—led by California (-158,220), New York (-142,109), Illinois (-53,910), Massachusetts (-25,029), and Louisiana (-14,113)," write Yushkov and Loughead.

"Consistent with last year's version of this publication, it is clear from the 2020-2021 IRS migration data that there is a strong positive relationship between state tax competitiveness and net migration," they add. "Overall, states with lower taxes and sound tax structures experienced stronger inbound migration than states with higher taxes and more burdensome tax structures."
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