Just-released data: Massachusetts’ Lost Wealth Rose 72 Percent From 2020 to 2021
With states in stiff competition for businesses and talent across the country, data recently released show a troubling trend in Massachusetts, with out-migration of wealth worsening. In 2021, Massachusetts shed wealth at a growing clip—up a whopping 72 percent higher over the year before. Massachusetts’ net loss of adjusted gross income (AGI) to other states grew from $2.5 billion in 2020 to $4.3 billion in 2021, according to recently released IRS data. Over 67 percent of the loss was to Florida and New Hampshire, both states with no income tax.
“The Massachusetts legislature needs to understand just how much the Bay State is at risk,” said Pioneer Institute Executive Director Jim Stergios. “Leadership must act to increase our state’s competitiveness by enacting laws and policies that encourage business and people not only to move here, but to remain here.”
In 2021, Massachusetts had a net loss of income tax filers of over 25,000, with over half going to two states with no income tax: 6,199 to Florida and 6,527 to New Hampshire. In 2020, the net loss of income tax filers was 5,922 and 4,306, respectively, meaning that there was a steep increase in out-migration to our neighbor to the north.