(The Center Square) — Georgia was one of 26 states that experienced a net gain in income tax filers from interstate migration between 2021 and 2022.
The finding is from the Tax Foundation, which analyzed Internal Revenue Service migration data.
According to its analysis, The Peach State saw a 0.47% net gain in residents relative to its population, ranking it 14th nationally. The state gained 50,969 residents and 24,028 tax returns, while its adjusted gross income increased by $0.71 billion.
“What states do have within their power is to make their state as attractive as possible for people to want to live and work and do business in, and that’s by generally having a more favorable tax rate,” Thomas Savidge, a research fellow at the American Institute for Economic Research, told The Center Square. “It’s the taxes that really are push-and-pull factors.”
Savidge said that states’ actions relative to regulations also play a role in attracting newcomers.
In recent years, Georgia policymakers have focused on the state’s tax rates. Several tax changes took effect at the start of July, the start of fiscal 2025, including a decrease in Georgia’s personal and corporate income tax rates.
House Bill 1015 lowers Georgia’s personal income tax rate to 5.39% from 5.49%, while HB 1023 sets the corporate income tax rate — previously 5.75% — to the same level as the personal rate. Additionally, HB 1021 increases Georgia’s income tax exemption from $3,000 to $4,000 per dependent.
All three measures, which Republican Gov. Brian Kemp signed in April, are retroactive to Jan. 1.
Neighboring South Carolina topped the list, seeing a 1.36% net gain in residents, while Florida ranked second with a 1.12% gain. New York ranked 50th, losing 1.12% of its population, while California at No. 49, lost 0.78%.
IRS migration data shows that Florida was the top state for residents moving to Georgia and the top destination for residents leaving the state. Other top states for residents moving to Georgia include New York, California, Texas, North Carolina and South Carolina.
This article was published by The Center Square and is republished here with permission. Click here to view the original.
