Massachusetts is once again in the national spotlight—this time for a trend that’s shaping relocation patterns across the country.
According to newly released IRS data analyzed by CNBC, high-tax states including Massachusetts saw billions of dollars in income leave between 2022 and 2023, driven largely by high-earning households relocating to other states.
For those considering a move to Massachusetts, the data tells a more nuanced story—one that highlights both challenges and opportunities in today’s housing and lifestyle landscape.
High Earners Driving the Majority of Income Loss
The latest IRS migration data shows that high-income households are responsible for the majority of adjusted gross income (AGI) leaving Massachusetts.
Key Findings:
- 70.1% of lost AGI in Massachusetts came from high earners
- 24.1% of household outmigration involved taxpayers earning over $200,000
- Data reflects migration trends from 2022 to 2023
This indicates that while fewer households may be leaving overall, those who do leave tend to have significantly higher incomes, amplifying the financial impact.
Why High-Income Residents Are Leaving
Massachusetts, like other high-tax states such as New Jersey, faces increased competition from lower-tax states attracting affluent residents.
Primary Drivers of Outmigration:
- State income tax burden
- Cost of living and housing affordability
- Remote work flexibility enabling relocation
- Desire for lower-tax retirement destinations
For some high earners, especially those nearing retirement, relocating to states with no income tax has become more feasible.
What This Means for Relocators Considering Massachusetts
While headlines may focus on “wealth flight,” the reality on the ground is more complex—especially for those moving into Massachusetts.
Continued Demand From Lifestyle-Driven Buyers
Despite outmigration trends, Massachusetts continues to attract:
- Professionals in healthcare, biotech, and education
- Families prioritizing top-ranked schools
- Buyers seeking proximity to Boston’s economic hub
For many, the career opportunities and quality of life outweigh tax considerations.
Market Opportunities May Be Emerging
As some high-income households exit, this can create:
- Increased housing inventory in certain price tiers
- Potential negotiation opportunities for buyers
- Shifts in luxury and upper-tier market dynamics
For relocating buyers, particularly in higher price ranges, this could open doors that were previously more competitive.
A Shift Toward Strategic Relocation
Rather than leaving entirely, some high earners are:
- Downsizing within Massachusetts
- Relocating from urban to suburban or coastal areas
- Maintaining dual residency strategies
This reflects a broader trend of optimization rather than full departure.
Massachusetts Still Offers Long-Term Value
Even with outmigration among high earners, Massachusetts remains one of the most desirable states for relocation due to its core strengths:
Strong Economic Foundation
- Leading industries: biotech, healthcare, education, finance
- Access to high-paying job markets
Top-Ranked Education
- Consistently ranked among the best school systems in the U.S.
Healthcare Access
- Home to some of the nation’s top hospitals and research institutions
Lifestyle Appeal
- Coastal living, historic towns, and four-season recreation
These factors continue to attract both domestic and international buyers.
A National Trend, Not Just Massachusetts
It’s important to note that Massachusetts is not alone. States like New Jersey and other high-tax regions are experiencing similar patterns, suggesting this is part of a broader national shift influenced by remote work and tax sensitivity.
What Relocators Should Consider in 2026
For those planning a move to Massachusetts, the key is understanding how this trend fits into your personal goals.
Consider:
- Your income level and tax strategy
- Proximity to career opportunities
- Long-term property value and appreciation
- Lifestyle priorities such as schools, healthcare, and recreation
Massachusetts may not be the lowest-tax option—but it remains one of the highest-value states in terms of opportunity and quality of life.
A Changing Landscape, Not a Declining One
The latest IRS data highlights a shift—but not a decline.
Massachusetts is evolving as:
- Some high earners leave for tax advantages
- Others continue to arrive for opportunity and lifestyle
For relocators, this creates a more balanced and potentially more accessible market, particularly in higher price points.
In 2026, moving to Massachusetts is less about chasing the lowest cost—and more about investing in long-term value.
Source: IRS migration data (2022–2023), reported by CNBC