Report: NYC exodus continues amid high taxes, diminishing services

By Chris Wade
The Center Square

New York City has lost tens of thousands of residents to other states including Texas and Florida in recent years, according to a new report by a fiscal watchdog, which is renewing calls on state lawmakers to cut taxes and reduce spending.

The analysis by the nonpartisan Citizens Budget Commission found that New York City lost a net of nearly 114,000 people in 2025 following two years of post-pandemic population growth that was attributed, in part, to an influx of migrants, asylum seekers and other international arrivals. 

"More New York City residents of all incomes, races, ethnicities, and ages have moved to other parts of the U.S. than moved in," the report's authors wrote. "Such broad-based domestic outmigration demonstrates that many differently-situated New Yorkers no longer find New York City’s value proposition compelling."

Most of those who left New York City stayed in the region, often relocating to Long Island, Westchester, and nearby states like New Jersey, Connecticut, and Pennsylvania. Those leaving the state most commonly moved to Florida, California, Texas, North Carolina, and Georgia. The report's authors suggested people leaving the city for locations with a "higher value proposition" through a "better mix of quality of life and cost of living." 

"The loss of working- and middle-class residents likely reflects the high cost of living and perhaps the quality of services including schools; it is a barometer of the challenges of raising a family in New York City," they wrote. "High taxes may also be a factor, especially for high-income households."

The report's authors said New York City has city has "long been a magnet for talent and opportunity" but recent out- and in-migration changes — driven by the pandemic, immigration policy, affordability and taxes, and quality of life issues — shows the nation's largest city is at a "critical juncture."

"Net domestic outmigration not only affects population, but also the taxable income that stays in New York," they wrote. "Not all income earned by NYC residents moves when they move, but some does." 

Meanwhile, the group's analysis of per capita income among those coming and going from the Empire State suggests that those moving into the state earn less than out-movers. 

Between 2019 and 2023, New Yorkers who moved out made $68 billion more than those who moved to New York City. That included a shift of $14 billion to Florida, $2 billion to Texas, and $23 billion to other parts of New York State, according to the report.

The exact loss of tax coffers is difficult to gauge because New Yorkers are taxed at variable rates depending on their income. New York City's top earners are taxed at 14.776%, which includes the state's 10.9% rate and the city's 3.876% rate – the highest top-tier tax rate in the nation.

Among those who left the city, affordability concerns, quality of life issues such as under-performing schools, a lack of affordable housing and work opportunities were the main reasons, according to the report's authors.

The report is the latest to warn about an exodus of taxpayers from New York City, and comes as New York City Mayor Zohran Mamdani is pushing for more taxes on businesses and the city’s wealthiest residents to offset a projected $5.4 billion budget gap and fund his far-left agenda. 

New York Republicans have long argued that out-migration is driven largely by NYC's highest-in-the-nation tax burden, a business sector struggling under excessive regulations and rising labor costs.

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