06/02/2026
You can leave the state. The tax may not leave you.
At least ten states are rewriting the rules on their wealthiest residents — California, New York, Washington, Michigan, and more. The goal isn’t just revenue. It’s to keep the people who fund the budget from walking out the door.
Washington, long a no-income-tax holdout, just passed a 9.9% tax on households over $1 million. California is weighing a one-time 5% tax on net worth over $1 billion — including gains never cashed out.
Then comes the part few see coming.
Several of these measures are built to reach you after you’ve already left. California has floated a levy that follows net worth over $30 million across state lines. Moving to Florida or Texas may start the clock — not stop it.
The receipts explain why. From 2015 to 2025, California and New York each lost over $100 billion in income to outbound moves. Florida and Texas absorbed most of it. Rather than compete for the wealth, high-tax states are choosing to chase it.
If you hold real estate, a business, or a serious portfolio in one of these states, the time to plan is now — not after a measure passes.
The door isn’t locked yet. But the toll booth is going up.
💬 Should a state be able to tax you on your way out — or after you’ve already gone?