New York and California lost more than $90 billion in income during the COVID-19 pandemic as high earners relocated to lower tax areas, according to a May 2 report from CNBC based on new data from the Internal Revenue Service.
In 2020, New York state lost $20 billion due to out-migration, which rose to $25 billion in 2021. California lost $18 billion in 2020, which grew to $29 billion in 2021.
Income losses from California and New York were more than three times higher in 2021 than in 2019.
High earners moved to states including Florida, Texas, Nevada, North Carolina and Arizona, according to the report.
Florida gained $39 billion in 2021 and $28 billion in 2020. About $10 billion of Florida's increase came from residents moving out of New York.
Texas added $11 billion, with over $5 billion coming from former California residents, while Nevada, North Carolina and Arizona added $14 billion combined.
The average income of residents leaving New York was $130,000, while the average income of New Yorkers moving to Florida reached $223,245.
California and New York are both predicting budget deficits in 2023 and 2024.