Migration Among the States: Best and Worst

By SBE Council at 6 February, 2026, 12:22 pm

by Raymond J. Keating -

The word "affordability" has popped up in political and policy circles of late. Obviously, government is a big factor playing into affordability regarding where to live, to start up and operate a business, to buy everything from milk to housing, to investing, and more. Taxes and regulations, directly and indirectly, affect affordability - from local towns to the states to the nation at large.

New domestic migration data from the U.S. Census Bureau offers a look at where people are moving to and from among the states. This says a great deal about affordability.

Excluding births, deaths and international migration, we get to net domestic migration. That is, how many people each state has gained or lost, on net, due to movement among the states.

The following two charts show the top 10 and bottom 10 states in terms of net domestic migration from July 2024 to July 2025.

The following two tables show net domestic migration from 2020 to 2025 - the top 10 and the bottom 10.

The obvious point that jumps out from these four charts is that gains in net domestic migration are centered on states that have relatively low governmental burdens compared to other states, including income-based taxes. In fact, there are no high income tax states in terms of the top 10 states in each chart regarding positive domestic migration.

In contrast, the bottom 10 in each chart - that is, the worst in terms of net domestic migration - overwhelmingly are high income tax states. Indeed, among the worst ranking states, only Louisiana could be said to have relatively low taxes.

The message from this data is obvious: If you want to make your state more affordable for individuals, families, entrepreneurs, businesses and investment, then keep taxes low and regulatory burdens light.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of " The Weekly Economist " book series, and 10 Points from Walt Disney on Entrepreneurship .