The red states racing ahead in America’s powerful wealth boom — and the states falling behind

IRS migration data for 2022–2023 show a sharp flow of people and taxable income into Southern and Sun Belt states, reshaping local economies and market dynamics. Texas and Florida led inflows — Florida added roughly $20.6 billion in taxable income while Texas gained about $5.5 billion and 56,000 residents — boosting housing demand, state tax bases and labor supply in fast-growing metros. California, New York and other coastal states saw substantial outflows (California lost ~100,000 filers and ~$12 billion in taxable income), pressuring local tax revenues and real-estate markets. The shifts have implications for municipal finances, state bond markets, housing and regional corporate activity ahead of the 2026 midterms.