Blue States Face Ongoing Taxpayer Exodus After COVID Mandates

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Even as blue states like New York, California, Massachusetts, Illinois, and Washington continue to see an influx of low-income migrants, they are also experiencing a mass exodus of high-earning taxpayers who are leaving in droves due to punitive new taxes and restrictive policies implemented during the COVID-19 pandemic. This has resulted in billions in lost tax revenue and population declines that are proving difficult for these states to reverse.

Why it matters

The ongoing population shift from blue states to red states has major economic and political implications, as the departure of high-income earners and businesses robs Democrat-led regions of crucial tax revenue and political influence. This trend highlights the consequences of heavy-handed pandemic policies and tax hikes that have alienated many residents.

The details

Data shows that blue states like New York, California, Massachusetts, Illinois, and Washington have all experienced significant net domestic out-migration and losses of adjusted gross income (AGI) in recent years. For example, Massachusetts lost $4.2 billion in AGI in 2023 after passing a tax on millionaires, while New York lost $9.9 billion in AGI from 2022-2023. California has led the nation in net domestic out-migration for six consecutive years, losing around 229,000 residents in 2024-2025 alone. Even as these states see an influx of low-income migrants, they are struggling to retain their high-earning taxpayers.

• In the period July 2024 -July 2025, California lost approximately 229,000 residents domestically.
• From 2022-2023, New York lost a net $9.9 billion in adjusted gross income.
• In 2023, Massachusetts lost $4.2 billion in adjusted gross income after passing a tax on millionaires.