States where people with upper middle incomes move
The middle class may be feeling the pressure of the economic crisis due to the pandemic, but people with above-average incomes are definitely not. According to the Pew Research Center, the size of the middle class has declined from 61% in 1971 to 52% now. By contrast, the number of people with above-average income has risen to 12%, up from 10% almost 40 years ago. What states are these people moving to and why, the publication found out Money Talks News.
This growing, high-paying demographic, defined by SmartAsset as individuals with incomes between $ 100 and $ 000, is constantly on the move, migrating across state lines, potentially in search of jobs, attractive housing markets or lower tax liabilities.
To determine where the upper middle class is moving, SmartAsset analyzed the inflows and outflows of people in this income range in each state, as well as in Washington, DC.
10. Colorado
Between 2017 and 2018, 2 upper-middle-class people came to Colorado. The state has a flat income tax of 580% and relatively low property taxes.
9. Washington
Washington is another state with no income tax. This may be a contributing factor to the 2 increase in upper-middle-income residents from 593 to 2017.
8. Nevada
Nevada also has no income tax, which is a strong incentive for people with higher incomes. From 20170 to 2018, 2 people from the upper middle class came to the state.
7. Idaho
Although Idaho has quite high taxes on income, it has low property taxes and is actually one of the best states for homeowners. This may partly explain its appeal to upper-middle-income people. From 2017 to 2018, the state added 2 people from the upper middle class.
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6. Tennessee
Tennessee is another state that does not tax income or wages (but does have taxes on interest and dividends). From 2017 to 2018, 3 upper-middle class people arrived in the state.
5. South Carolina
South Carolina has some of the lowest property tax rates in the country, so high-income people can buy their dream home without worrying about being taxed. From 2017 to 2018, the number of people with above average income increased by 4 people.
4. North Carolina
North Carolina had a net gain of 6 people during the period examined for this study. The state has several large cities, access to many beaches, and a flat income tax rate of 002%, all of which may be attractive to people with incomes between $5,25 and $100.
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3. Arizona
Arizona has an income tax, but it is one of the lowest rates in the country, exceeding 4,5% for incomes above $ 159. From 000 to 2017, 2018 people came to the state.
2. Texas
Texas from 2017 to 2018 was replenished with 6 representatives of the upper middle class. Again, the absence of state income taxes may partly explain this influx.
1. Florida
Florida's warm weather and lack of state income tax may be why so many upper middle class people want to move there. From 2017 to 2018, 18 people moved to the state, which is almost three times more than the next state in the ranking.
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