Since 2020, California has lost 1.4 million residents to other states. Not to other countries. To other states. That’s the population of San Diego just... gone.

New York lost nearly 950,000. Illinois lost 440,000. And where did they go? Florida gained about 900,000. Texas gained 475,000. The Carolinas combined gained over half a million. Tennessee, Arizona, Idaho — all gaining.

Now, people will tell you it’s about weather. Or remote work. And sure — those matter. But the pattern is too clean to ignore. The states gaining people either have no income tax or a low flat rate. The states losing people charge 10% to 13% at the top. Florida: zero. Texas: zero. New York: up to 10.9%. California: up to 13.3%.

And here’s the part that really gets me. Congress raised the SALT deduction cap last year from $10,000 to $40,000. That was supposed to ease the pain for high-tax state residents. Well... the cap went up and the moving trucks kept rolling. California still lost 229,000 people in the most recent year alone. Turns out a bigger federal deduction doesn’t fix a 13.3% state tax rate.

One more thing. That $40,000 SALT cap drops back to $10,000 in 2030. If you’re in New York or California doing the math on whether to stay or go, that four-year countdown just made the decision easier.

If you’re within a few years of retirement and still in a high-tax state, this is worth a real conversation with your advisor — not someday, but this month. Run the numbers on what you’d save. For a lot of folks, the annual difference in state taxes alone covers the mortgage on a pretty nice place in the Carolinas.