BOSTON – The Mass Opportunity Alliance (MOA) highlighted the findings of the latest Internal Revenue Service (IRS) “Statistics of Income” data, which shows steep taxes continue to fuel the state’s outmigration crisis.
Released last week, the report provides data for 2023, the first year the income surtax – also known as the “millionaire’s tax” – took effect in the commonwealth. The figures include the number of people who moved to and from Massachusetts, and their total adjusted gross income (AGI), respectively.
“This data confirms that Massachusetts is losing talent and taxable income to lower-cost, lower-tax competitors,” said MOA spokesperson Colin Reed. “These numbers validate what anecdotal evidence – and commonsense – have been telling us all along: high state taxes, including the income surtax, are driving people away from Massachusetts.”
Key findings from the new IRS data include:
- In 2023, Massachusetts experienced a net migration of -30,460, with 150,394 leaving the Commonwealth and 119,934 people moving to the state.
- Since the surtax went into place, the Bay State’s year-over-year AGI loss increased. For context, Massachusetts lost $11.88 billion AGI in 2023, translating to a net loss of -$4.18 billion compared to -$3.9 billion in 2022. This jump suggests that high-earners made up a sizable portion of those leaving the state.
- Key competitor states gained residents from Massachusetts, including Florida (net increase of 7,879), New Hampshire (net increase of 7,000), and North Carolina (net increase of 2,546) – all lower-cost, lower-tax destinations.
To learn more, visit MassOpportunity.org. ♦
