EL7.AI
Macro Economy•14 July 2026•
2 min read

Millionaire Exodus Costs New York Billions in Lost Tax Revenue

Key Facts

1The Citizen Budget Commission revealed that New York's shrinking share of millionaires cost the state $10.7 billion in lost income tax revenue in 2022.
2New York's share of US millionaires fell from 12.7% in 2010 to 8.7% in 2022, the steepest decline of any state.

Amid intensifying tax competition between US states, New York is facing mounting fiscal challenges as high-net-worth individuals migrate to other jurisdictions. Data from the Citizen Budget Commission revealed that the state's shrinking share of millionaires cost $10.7 billion in lost income tax revenue in 2022. According to reports, New York's share of US millionaires plummeted from 12.7% in 2010 to just 8.7% in 2022, marking the steepest decline of any state in the nation.

This exodus coincides with the implementation of new taxes on luxury properties, prompting prominent investors like Citadel founder Ken Griffin to relocate operations to lower-tax states such as Florida. Per market data, Florida and Texas have seen record wealth inflows during the same period, benefiting from their lack of state income tax. This shift places significant pressure on New York’s municipal budget, which traditionally relies on high earners to fund essential city services. Experts suggest that a sustained trend could lead to long-term funding gaps for infrastructure and public services.

Looking ahead, investors are monitoring how this migration impacts the luxury real estate market and general economic activity. Market participants are awaiting the US Existing Home Sales data on July 9, 2026, for insights into housing sector resilience, as well as the FOMC Minutes scheduled for release on July 8, 2026, to gauge broader monetary policy directions.