Californians are leaving for these states

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Californians are leaving for these states

California welcomed 254,935 new residents from across the nation between 2021 and 2022. But, 399,138 Californians also moved out to other states during that same time. In total, the Golden State lost 143,554 households. Many people leaving California could have been incentivized by lower costs of living, lower taxes, less competitive housing markets and business opportunities elsewhere. 

With this in mind, SmartAsset analyzed the latest IRS data to explore where Californians are headed, as well as from which states new transplants are entering.

Key Findings

• Texas is the most popular destination for Californian transplants. California lost the most residents to Texas with 54,136 households leaving for the Lone Star State. These households had an average AGI of $146,000. The net loss was 30,820 households after accounting for the 23,316 Texan households that moved into California. However, these households coming into California had a substantially lower average AGI of $106,196.
• Less affluent Californians moved to Arizona. Arizona is the second-most popular destination for Californians leaving, with 32,864 households moving out, or a net loss of 16,749. Those moving to Arizona earned the lowest average AGI of the top 10 most popular destinations for Californian transplants at $100,399. Of the 16,115 households moving in from Arizona, the average household AGI was just $77,002. 
• More than 30,000 Californian households cross the state border to Nevada. Like Texas, Nevada offers the benefit of no state income tax, potentially saving ex-Californians thousands of dollars per year. Nevada was the third-most popular destination for Californians, with those leaving taking an average AGI of $134,796 with them. At the same time, 14,518 households with $86,040 AGI moved to California. 
• New York transplants bring the most money to California. New York sent 19,708 households to California, made up of 26,821 individuals, with the highest average AGI among in-migrants at $171,829. However, migration between New York and California cancels each other out, with 19,656 households (25,453 individuals) with an AGI of $170,781 moving in. New York ranked as the sixth-most popular destination for Californians moving out.
• The richest Californians are leaving for Wyoming. A popular destination for the ultra-wealthy, Wyoming attracted 1,368 Californian households that had an average AGI of $284,133. New Hampshire ($204,605) and Florida ($187,025) attracted the second- and third-highest earning Californian households, but only Florida ranked among the top 10 popular destinations for Californians.

SmartAsset

Top 10 States Where Californians are Headed

States are ranked by the gross number of households that moved in from California between 2021 and 2022.

1. Texas

• Households moving into California: 23,316
• Individuals moving into California: 39,032
• AGI, households moving into California: $106,197
• Households leaving California for Texas: 54,136
• Individuals leaving California for Texas: 106,882
• AGI, households leaving California for Texas: $145,960
• Net households moved into California: -30,820
• Net individuals moved into California: -67,850

2. Arizona

• Households moving into California: 16,115
• Individuals moving into California: 25,677
• AGI, households moving into California: $77,002
• Households leaving California for Arizona: 32,864
• Individuals leaving California for Arizona: 57,857
• AGI, households leaving California for Arizona: $100,399
• Net households moved into California: -16,749
• Net individuals moved into California: -32,180

3. Nevada

• Households moving into California: 14,518
• Individuals moving into California: 23,983
• AGI, households moving into California: $86,040
• Households leaving California for Nevada: 30,571
• Individuals leaving California for Nevada: 52,332
• AGI, households leaving California for Nevada: $134,796
• Net households moved into California: -16,053
• Net individuals moved into California: -28,349

4. Washington

• Households moving into California: 18,275
• Individuals moving into California: 29,096
• AGI, households moving into California: $162,665
• Households leaving California for Washington: 27,550
• Individuals leaving California for Washington: 44,160
• AGI, households leaving California for Washington: $139,927
• Net households moved into California: -9,275
• Net individuals moved into California: -15,064

5. Florida

• Households moving into California: 13,064
• Individuals moving into California: 19,928
• AGI, households moving into California: $120,948
• Households leaving California for Florida: 24,011
• Individuals leaving California for Florida: 42,412
• AGI, households leaving California for Florida: $187,025
• Net households moved into California: -10,947
• Net individuals moved into California: -22,484

6. New York

• Households moving into California: 19,708
• Individuals moving into California: 26,821
• AGI, households moving into California: $171,829
• Households leaving California for New York: 19,656
• Individuals leaving California for New York: 25,453
• AGI, households leaving California for New York: $170,781
• Net households moved into California: 52
• Net individuals moved into California: 1,368

7. Oregon

• Households moving into California: 10,550
• Individuals moving into California: 15,806
• AGI, households moving into California: $93,067
• Households leaving California for Oregon: 19,288
• Individuals leaving California for Oregon: 30,421
• AGI, households leaving California for Oregon: $104,753
• Net households moved into California: -8,738
• Net individuals moved into California: -14,615

8. Colorado

• Households moving into California: 9,895
• Individuals moving into California: 14,929
• AGI, households moving into California: $105,770
• Households leaving California for Colorado: 15,585
• Individuals leaving California for Colorado: 24,864
• AGI, households leaving California for Colorado: $129,118
• Net households moved into California: -5,690
• Net individuals moved into California: -9,935

9. Tennessee

• Households moving into California: 3,450
• Individuals moving into California: 5,598
• AGI, households moving into California: $106,019
• Households leaving California for Tennessee: 13,086
• Individuals leaving California for Tennessee: 27,295
• AGI, households leaving California for Tennessee: $144,543
• Net households moved into California: -9,636
• Net individuals moved into California: -21,697

10. North Carolina

• Households moving into California: 6,495
• Individuals moving into California: 10,734
• AGI, households moving into California: $82,228
• Households leaving California for North Carolina: 11,482
• Individuals leaving California for North Carolina: 21,983
• AGI, households leaving California for North Carolina: $113,972
• Net households moved into California: -4,987
• Net individuals moved into California: -11,249

Data and Methodology

SmartAsset examined the latest IRS data, which comes from the 2021 and 2022 tax years to determine the number of individuals and households moving out of and into California, where they are coming from and going to within the U.S., as well as the average adjusted gross income they bring with them.