Wealthy Americans are continuing to leave high-tax states, and New York City is feeling the effects, according to newly released IRS data covering 2022 to 2023. Manhattan attracted more new tax filers than anywhere else in the country during that period, yet still lost roughly $922 million in adjusted gross income as high-earning residents departed and were replaced by lower-earning newcomers. The trend matters because affluent households pay a disproportionate share of income tax in states with progressive systems, so the changing composition of the tax base directly affects funding for schools, infrastructure and other public services ahead of the 2026 midterms.

Beyond Manhattan, other parts of New York City and its suburbs saw significant outflows: Queens County lost 17,109 tax filers to interstate migration — the nation's second-largest net loss — while the Bronx lost 16,319, and Suffolk and Nassau counties also ranked among the ten largest. All ten counties with the biggest net losses of tax filers were in New York or California, both high-tax, high-cost, Democrat-run states. Many of those leaving have relocated to lower-tax, Republican-run states such as Florida and Texas, which the article frames as among the main beneficiaries of recent interstate migration.