New York Sees Exodus as High Taxes Drive Residents Away

Democrat-led policies fail to attract people and businesses, leading to population decline and revenue losses.

Published on Feb. 13, 2026

Got story updates? Submit your updates here. ›

New York is experiencing a significant population decline as high taxes and a deteriorating quality of life drive residents, particularly the wealthy, to move to lower-tax states like Florida. Despite the negative impacts on the state's economy and political clout, Democrat legislators and governors in New York continue to raise taxes to fund programs aimed at winning votes from specific constituent groups, rather than considering policies that could attract people and businesses.

Why it matters

The exodus of residents and businesses from New York is shrinking the state's tax base and political influence, with implications for the state's long-term economic and political future. This case study highlights the failure of imagination among Democrat leaders who are unwilling to consider alternative approaches that could revitalize the state and its communities.

The details

New York's population has declined by over 200,000 since the 2020 Census, the biggest drop of any state. Many former New Yorkers have relocated to Florida, which has no state income tax, to escape New York's high taxes, including a top state income tax rate of 10.9% and a combined city and state rate of 16.76% for high earners. The state's estate tax, which can reach 16%, is also driving wealthy residents to leave. Despite the negative impacts, New York's leaders continue to propose raising taxes further, in a vicious cycle that is eroding the state's tax base and political influence.

  • New York's population is down a net 201,269 from the 2020 Census count.

The players

Zohran Mamdani

The mayor of New York City who wants to raise taxes even further to address a 'budget crisis'.

Mike Bloomberg

The former mayor of New York City who warned that the city could not afford to lose its top taxpayers.

Got photos? Submit your photos here. ›

What’s next

New York's leaders will need to consider policies that could attract people and businesses to the state, rather than continuing to raise taxes, in order to address the state's population decline and revenue losses.

The takeaway

This case study in New York highlights the failure of imagination among Democrat leaders who are unwilling to consider alternative approaches to taxation and economic development, even as their policies drive residents and businesses out of the state. Revitalizing New York and other blue states will require a shift in mindset and a willingness to try new strategies to attract people and investment.