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Texas Ranks Second In U.S. For Attracting Rich Residents

Between 2020 and 2021, over 9,000 wealthy individuals moved into the Lone Star State
Photo: – Yuri A | Shutterstock

According to a new report, Texas has gained the second-highest amount of wealthy new residents in the whole country.

On July 26, the financial tech company SmartAsset released the 2023 Where High Earners Are Moving study to pinpoint the states where high-wage earners were migrating to the most.

To carry out its study, SmartAsset evaluated "the inflow and outflow of tax filers making at least $200,000 in each state between 2020 and 2021", according to the report.

The study found that Texas had attracted a whopping 22,751 residents that would be considered wealthy, while the state simultaneously saw 13,743 high-wage earners exit the state.

The end result was the Lone Star State had the second-highest number of rich residents moving in, with 9,008 high-wage earners calling Texas their home.

This was the second year in a row that Texas ranked second in SmartAsset's annual report. In the company's 2022 study — which evaluated tax filers between 2019 and 2020 — Texas attracted over 5,000 affluent individuals to its state.

Florida was the only place to rank higher than Texas on this year's report, with The Sunshine State adding 27,567 wealthy individuals — which tripled the amount that Texas had gained.

Joining the two states in the top five were North Carolina (third place, 5,446 high-wage earners gained), Arizona (fourth, 4,563) and South Carolina (fifth, 4,510).

On the flip side, a number of U.S. states saw a large number of wealthy residents packing up and leaving for greener pastures.

California by far saw the largest exodus of rich folks, with 27,341 exiting the state. Other states that experienced the largest amount of departures included New York (19,795), Illinois (9,131), Massachusetts (3,118) and New Jersey (2,617).

To determine its rankings, SmartAsset assessed IRS data from 2020 to 2021 in regard to tax filers that earned $200,000 or more that moved in or exited a state.

To view the study in full, head over to the SmartAsset website.