Breaking: U-Haul Growth Index Shows Americans Moving to Low-Tax States
The latest U-Haul Growth Index reveals a clear pattern: Americans are increasingly relocating to states with lower personal income taxes. The movement reflects a broader trend where tax policy influences daily life choices,from where people live to where they work.
The index tracks net gains adn losses from one-way moves recorded by U-Haul,assigning each state a Growth Rate score. While note is made that not all moves are captured by the service, the results offer a meaningful snapshot of migration trends tied to taxes and affordability.
top destinations for new residents
Texas sits at the top of the list, followed by Florida. North Carolina and Tennessee rank third and fourth, with South Carolina rounding out the top five. Washington and Arizona also rank highly, while Idaho, alabama, and Georgia complete the top ten.
States losing residents the most
On the opposite end, California leads the exodus, followed by Illinois, New Jersey, New York, Massachusetts, Maryland, Pennsylvania, Ohio, Connecticut, and Michigan. The pattern aligns with higher tax burdens in many of these states.
Tax policy and migration patterns
Analysts emphasize a strong tax connection to the migration flow. The top destinations boast notably lower personal income tax rates. The average rate among these states is about 3.5 percent, versus roughly 7.2 percent in the bottom ten—nearly double.
The data also echoes political dynamics.Seven of the ten fastest-growing states have Republican governors, while nine of the ten slowest-growing states have Democratic governors. The trend suggests political leadership may mirror or influence migration choices.
Tax snapshots from the index
california,which recorded the largest outflow in 2025,remains home to the highest state income tax rate in the nation at 13.3 percent. Georgia, by contrast, enforces a flat tax, 5.09 percent for all taxpayers. Seven states currently levy no state income tax, and fourteen employ a flat-rate tax structure.
These tax contrasts appear in parallel with the ranking gap between the top and bottom groups, underscoring how tax policy shapes how Americans choose where to live.
Tables: at-a-glance comparisons
| Rank | State | Politics | Tax Context |
|---|---|---|---|
| 1 | Texas | R | Lower income taxes overall |
| 2 | florida | R | Low or no income tax |
| 3 | North Carolina | D | Moderate taxes |
| 4 | Tennessee | R | Low income tax |
| 5 | South Carolina | R | Low income tax |
| 6 | Washington | D | No personal income tax (revenue elsewhere) |
| 7 | Arizona | D | Lower income tax rates |
| 8 | Idaho | R | Moderate taxes |
| 9 | Alabama | R | lower income tax |
| 10 | Georgia | R | Flat tax; 5.09% rate |
| Rank | State | Politics | Tax Context |
|---|---|---|---|
| 50 | California | D | Highest state income tax (13.3%) |
| 49 | Illinois | D | high taxes |
| 48 | New Jersey | D | High taxes |
| 47 | New York | D | High taxes |
| 46 | Massachusetts | D | Higher taxes |
| 45 | maryland | D | Higher taxes |
| 44 | Pennsylvania | D | higher taxes |
| 43 | ohio | R | Moderate to higher taxes |
| 42 | Connecticut | D | Higher taxes |
| 41 | Michigan | D | Higher taxes |
Bottom line: tax policy remains a meaningful driver of where Americans choose to live. The growth Index highlights a persistent movement toward states with friendlier tax climates, even as other factors like housing costs and prospect mix in.
What state would you consider relocating to for tax reasons? Do you expect migration trends to shift as tax policies evolve? Share your thoughts in the comments below.
Disclaimer: Tax rates and policies change over time. always verify current rates with official state resources before planning a move.
