Massachusetts faces the risk of losing nearly $1 billion in annual tax revenue by 2030 due to high taxes and housing costs driving wealthy residents to relocate. The pandemic accelerated migration out of Massachusetts to other U.S. states, facilitated by the rise of remote work, making it feasible for people to live farther from their offices. According to a study by Boston University’s Questrom School of Business, over 96,000 residents with a combined $19.2 billion in adjusted gross income are expected to leave the state annually by 2030. This exodus could cost Massachusetts approximately $961 million in income tax revenue each year. The trend is particularly pronounced among prime-age workers, with the 26-to-34-year-old cohort experiencing the largest volume of departures. These outbound residents are primarily relocating to neighboring New England states like Maine and New Hampshire, as well as southern states such as Florida, North Carolina, and Texas, which offer lower taxes, more affordable housing, and less expensive healthcare. While Massachusetts recently enacted a 4% surcharge on incomes exceeding $1 million (generating substantial revenue), the long-term impact on population growth remains to be seen.
Massachusetts stands to lose almost $1 billion in annual revenue by 2030 as high taxes push wealthy residents to move elsewhere, per Bloomberg.
More than 96,000 residents making a combined $19.2 billion in adjusted gross income are set to leave the state annually by 2030.
— unusual_whales (@unusual_whales) June 19, 2024