IRS Migration Data & State Policy
The Self-Defeating Policy
California never conformed and still hosts the largest U.S. venture cluster — that cluster is path-dependent. For other states, the 2026 lesson is New York: a high-tax state that kept QSBS after founders showed up. Oregon's governor flagged competitiveness the day she signed decoupling.
State QSBS Conformity
Choose a state to see its tax rate and policy details. Statuses include enacted changes; check the notes for effective dates.
The Migration Problem
Bar colors show QSBS status in the state policy dataset, not migration direction. Migration figures are from 2021–2022; policy statuses include subsequent changes.
Top 5 States Gaining Filers
Net interstate tax filer migration · IRS SOI 2021–2022
View numbers and state statuses
| State / status | Net filers |
|---|---|
| Florida— No income tax | +125,551 |
| Texas— No income tax | +88,216 |
| North Carolina✓ Conforms | +43,653 |
| South Carolina✓ Conforms | +32,927 |
| Tennessee— No income tax | +30,935 |
Top 5 States Losing Filers
Net interstate tax filer migration · IRS SOI 2021–2022
View numbers and state statuses
| State / status | Net filers |
|---|---|
| California× Decoupled | -144,203 |
| New York✓ Conforms | -108,586 |
| Illinois× Decoupled | -45,460 |
| Massachusetts◐ Partial | -26,033 |
| New Jersey✓ Conforms | -20,820 |
$102 billion
in AGI lost by California to outbound migration, 2020-2022
In 2022 alone, 24,670 high-earner households left, taking $16.1 billion in AGI.
Migration is driven by housing costs, remote work, and overall tax burden — not QSBS alone. California's cluster is the exception opponents cite, and they are right that it never needed QSBS to dominate venture. The 2026 lesson is New York keeping the exclusion, not California 2013.
Sources: CA Legislative Analyst's Office (2024), Center for Jobs (2024)
Migration data: IRS SOI Migration Data 2021-2022, Tax Foundation analysis Dec 2024