Texas and Florida are drawing the largest number of new residents across the country. However, South Carolina is currently growing faster than any other state. This information comes from newly released IRS data tracking relocation patterns.
The recent data highlights a broader population shift toward the South. Americans report they are making the move to secure lower taxes and more job opportunities. Many families are simply seeking a higher overall quality of life.
South Carolina is seeing the biggest influx of new residents per capita. The state is seeing an increase equal to just over one percent of its population. For every 100 people living in the state, one new person moved in from elsewhere.
The Palmetto State added more than 59,000 residents from other states between 2022 and 2023. The movement across state lines is not just about a shifting population. It is also causing a massive shift in regional income.
South Carolina gained more than 29,000 new tax filers and roughly $4.1 billion in income. This massive influx is likely to boost local economies as new residents bring spending power. The population shift will also help fill open jobs in growing industries.
Texas and Florida are still drawing the most people overall due to their massive size. Texas led the nation with 56,473 new tax filers in 2023. Florida followed closely behind with 55,349 new filers.
These massive gains come as some of the most expensive states see significant losses. Democrat-run states like California and New York are experiencing massive population declines. California lost more than 100,000 tax filers from 2022 to 2023, while New York lost nearly 72,000.
The massive income losses directly mirror the concerning population decline. California lost nearly $12 billion in income, and New York lost about $10 billion. These massive financial hits are driven largely by high earners relocating to red states.
These shifts suggest Americans are redistributing economic power across the country. Citizens are voting with their feet and taking their tax dollars to more business-friendly states. This ongoing trend could permanently reshape state economies in the years ahead.