The IRS’ newly released interstate Adjusted Gross Income migration data show how much wealth states lost or gained between 2019 and 2020. The latest available data is for 2020.
Net AGI migration in 2020 is calculated by subtracting AGI inflow from AGI outflow. The change between 2019 and 2020 in net AGI migration takes an individual state’s net AGI migration in 2020 and subtracts it from net AGI in 2019.
When assessing the states whose wealth increased the most between 2019 and 2020 through migration, most follow previous AGI migration trends: Florida, Tennessee, Nevada, and Texas are among the top states for net AGI increase in 2020. Most of these states’ performance has been analyzed by Truth In Accounting: Top and Bottom Net AGI 2020 Analysis.
Among the states that lost the most in 2019, Connecticut improved significantly in 2020, unlike its neighbor New York. The state’s net AGI change in income migration between 2019 and 2020 is impressive. The state’s net AGI migration improved by nearly $1.4 billion, from around negative $1.6 billion to negative $302 million, in 2020. New York, however, went from losing almost $9 billion in 2019 to losing nearly $20 billion in 2020.
Connecticut (50th) and New York (41st) ranked in the bottom ten for state government fiscal management according to TIA’s 2021 Financial State of the States Report. Is Connecticut turning things around, or are New Yorkers moving there because their state is in a downward spiral?