Most People Move to These 5 States — Here's Why

Five states absorbed the majority of domestic migrants in 2026. The reasons are not complicated: lower taxes, cheaper housing, and job markets that actually grew while the coasts contracted.

The top outbound states in 2026 were New Jersey, New York, California, North Dakota, and Colorado. The people leaving those states went somewhere. Here is where they went, and why.

1. Florida

Florida has no state income tax, no estate tax, and a cost of living index that sits around 100.5, nearly even with the national average. For someone leaving New York, where the top marginal income tax rate hits 10.9%, the math is immediate.

The Tampa and Orlando metro areas posted some of the strongest job growth in the country through 2024 and into 2026, driven by finance, tech, and healthcare relocations. Retirees have always known this, but working-age families caught up fast. If you want to see how Florida's tax picture stacks up against your current state, our Best States for Retirees to Avoid Taxes breakdown covers the full comparison.

2. Texas

Texas added more residents than any other state by raw headcount in 2026. No income tax, a median home price well below California and New York, and a regulatory environment that drew corporate headquarters from Dell to Tesla.

The Austin metro has cooled from its 2021 peak, but Dallas-Fort Worth kept absorbing migrants steadily. Texas property taxes are higher than most people expect, with an effective rate around 1.60%, so the income tax savings need to be weighed against that. The total package still wins for most households earning above $100,000. See our full States With No Income Tax in 2026 post for the complete list of zero-income-tax states and what they cost you elsewhere.

3. South Carolina

South Carolina recorded the largest net migration gain per 10,000 residents in 2026, which makes it the most important story most people missed. It is not adding the raw numbers Texas does, but relative to its existing population, no state is growing faster.

Myrtle Beach, Greenville, and the Charlotte suburbs spilling across the border drove most of that growth. The state income tax rate dropped to a flat 6.2% in 2024 and is scheduled to fall further, toward 3.99% by 2027 under current law. Median home prices in Greenville remain under $300,000. That combination is hard to argue with for families priced out of Charlotte or Atlanta.

4. North Carolina

North Carolina's flat income tax rate fell to 4.5% in 2024 and is legislated to reach 3.99% by 2026. Combined with a cost of living index around 96, below the national average, and Research Triangle's continued tech hiring, the state pulls from every direction.

People are leaving New York and New Jersey for the Triangle at a measurable clip. Charlotte is the other magnet, a financial services hub with home prices that, while rising, still sit significantly below comparable metros in the Northeast. The state does not tax Social Security income, which makes it competitive for retirees as well as workers. Our States That Don't Tax Social Security post has the full rundown on that front.

5. Tennessee

Tennessee eliminated its Hall Tax on investment income in 2021, leaving residents with zero state income tax on wages and, now, on most investment returns. Nashville's growth has been documented heavily, but Chattanooga and Knoxville are absorbing significant migration pressure too.

The state sales tax is 7%, and local additions push some areas above 9.5%, which is the tradeoff for the zero income tax. Property taxes are low, with an effective rate around 0.56%, one of the lowest in the country. For high earners moving from California, where the top income tax rate is 13.3%, Tennessee's total tax burden is dramatically lower even accounting for the sales tax hit.

Key Takeaways

• South Carolina posted the highest net migration rate per 10,000 residents in 2026. Florida and Texas led in raw headcount.
• Every state on this list either has no income tax or a flat rate under 6.5%, and every one is on a legislative path to reduce that rate further.
• The top five outbound states in 2026, New Jersey (2.13% effective property tax rate), New York, California, North Dakota, and Colorado, all share either high income taxes, high housing costs, or both.

The decision to move states is one of the highest-leverage financial moves most households can make. Use our state comparison calculator to run your specific income, property value, and spending against the actual tax rates in any two states side by side.