New York Losing Jobs to Texas as Corporate Tax Hike Looms

Partnership for the City of New York report warns Mayor Mamdani's tax push will accelerate exodus to pro-business Texas

Published on Feb. 20, 2026

Got story updates? Submit your updates here. ›

A new report from the Partnership for the City of New York claims that New York is losing thousands of jobs to Texas, which has more business-friendly policies like low taxes. The report warns that Mayor Zohran Mamdani's proposal to raise the corporate tax rate from 7.25% to 11.5% would only worsen the exodus of companies and jobs from the state.

Why it matters

New York's status as the financial capital of the U.S. is being challenged as companies and jobs move to Texas, which has no corporate or state income tax. This trend could accelerate if Mamdani's tax hike is implemented, further eroding New York's competitiveness and economic strength.

The details

The report found that in 2024, Texas surpassed New York as the state with the most financial services employees, excluding insurance and real estate. Over the last decade, 23 companies have relocated their headquarters from New York to Texas, second only to firms from California. Major companies like JPMorgan Chase and Wells Fargo have significantly expanded their Texas operations in recent years.

  • In 2024, Texas surpassed New York as the state with the most financial services employees, excluding insurance and real estate.
  • Over the last decade, 23 companies have relocated their headquarters from New York to Texas.
  • JPMorgan Chase announced a new Fort Worth office in 2025 that will double employee capacity by 2027.
  • Wells Fargo opened a new Dallas campus in 2025, increasing office capacity by 1,500 employees.
  • Texas received approval to launch its own stock exchange, slated to open by the end of 2026.

The players

Partnership for the City of New York

A top corporate advocacy group in New York City that issued the report warning about the job losses to Texas.

Mayor Zohran Mamdani

The mayor of New York City who has proposed increasing the corporate tax rate from 7.25% to 11.5%.

Governor Kathy Hochul

The governor of New York who opposes tax increases and is seeking re-election this fall.

JPMorgan Chase

A major financial services company that now employs more people in Texas than in New York, its home state.

Wells Fargo

A financial services company that opened a new Dallas campus in 2025, increasing its office capacity by 1,500 employees.

Got photos? Submit your photos here. ›

What’s next

Texas is slated to open its own stock exchange by the end of 2026, which could further position the state as a more issuer-friendly and lower-cost alternative to the New York Stock Exchange and Nasdaq.

The takeaway

New York's status as the financial capital of the U.S. is under threat as companies and jobs continue to migrate to Texas, which has a more business-friendly tax and regulatory environment. Mayor Mamdani's proposed corporate tax hike could accelerate this exodus, further eroding New York's economic competitiveness.