High-Tax New England State Sees 200K Residents Leave Over Five Years

By State & Economy Desk

BOSTON — A traditionally Democratic, high-tax New England stronghold has seen roughly 200,000 residents relocate to other states over the past five years, according to census migration data — fueling debate over taxes, housing costs and long-term economic competitiveness.

Recent population estimates show that Massachusetts experienced significant net domestic out-migration since 2020, with many residents heading to lower-tax states such as Florida, Texas and New Hampshire.

A recent report shows that Massachusetts, a high-tax Democratic state, lost about 182,000 residents to other US states between April 2020 and July 2025.

📊 What the Numbers Show

Census Bureau data indicates:

Sustained net domestic outflow each year since the pandemic
Higher-income households disproportionately represented in departures
Population stabilization in some metro areas offset by suburban and regional losses

Economists caution that “net migration loss” does not mean the state’s economy is collapsing — but it does reflect changing cost-of-living calculations for many households.

he report warns that rising unemployment, lagging private-sector job growth and demographic pressures — including low birth rates and an aging population — are weighing on long-term competitiveness

💰 Taxes & Cost of Living

Massachusetts implemented a voter-approved surtax on income above $1 million in 2023, adding to longstanding concerns about tax burdens among top earners. Combined with:

High housing prices
Expensive childcare
Elevated utility and energy costs

critics argue the financial equation has become increasingly challenging for middle- and upper-income families.

Although Massachusetts remains the most educated state in the nation, the study cautions that continued domestic out-migration and upcoming retirements could shrink the skilled workforce in the years ahead.

🏙️ Counterarguments

State leaders note that Massachusetts remains home to:

World-leading universities and hospitals
A dominant biotech and life sciences sector
Strong venture capital activity

Boston’s unemployment rate remains relatively low, and international migration has helped offset some domestic losses.

🔄 A Regional Trend?

Migration patterns across the U.S. since 2020 show a broader shift toward Sun Belt states offering lower taxes and warmer climates. Several Northeastern states — including New York — have experienced similar population declines.

⚖️ Collapse or Correction?

Urban economists describe the situation less as an “exodus” and more as structural realignment accelerated by remote work flexibility.

“High-cost states face pressure,” one analyst said. “But they also retain powerful economic engines.”

Whether the trend continues may depend on housing supply reforms, fiscal policy decisions and the evolving appeal of remote work.

For now, the migration numbers are shaping political debate — and raising questions about how high-tax states compete in an increasingly mobile America.