U-Haul Report Reveals Americans Leaving High-Tax States
U-Haul has published its annual Growth Index, highlighting a significant trend: Americans are relocating from high-tax states to those with lower or no income taxes. The findings reveal that three of the top four states that attract movers—Texas, Florida, and Tennessee—impose no personal income tax.
California Ranks Last in U-Haul Growth Index
California has once again ranked at the bottom of the index, maintaining its position as the state with the highest top personal income tax rate in the country, currently set at 13.3%. This marks the sixth consecutive year that California has held the 50th place in the rankings.
Tax Rate Comparisons
The U-Haul report underscores stark differences in tax burdens across the states. The average top state personal income tax rate for the ten best-ranked states is just 3.5%. In contrast, the ten worst-ranked states have an average rate of 7.2%. This means that the tax burden in the worst states is more than double that of the best performers.
- Average Top State Personal Income Tax Rates:
- Best Ranked States: 2.0%
- Worst Ranked States: 9.8%
The data illustrates that residents in the five worst-ranked states face a tax rate nearly five times higher than those in the top five.
Top and Bottom States from the U-Haul Growth Index
| Top 10 Best Ranked States | Top 10 Worst Ranked States |
|---|---|
| Texas | California |
| Florida | New York |
| North Carolina | Illinois |
| Tennessee | New Jersey |
| South Carolina | Massachusetts |
| Washington | Maryland |
| Arizona | Pennsylvania |
| Idaho | Ohio |
| Alabama | Connecticut |
| Georgia | Michigan |
Impact of Right-to-Work Laws
The report also identifies a correlation between tax policies and labor regulations. Among the best-ranked states, nine have Right-to-Work laws, which enhance worker freedoms regarding union membership. Conversely, none of the states in the bottom ten have such laws, emphasizing a trend toward forced unionism.
Grover Norquist, president of Americans for Tax Reform, noted that the U-Haul Growth Index serves as a reflection of which states are thriving or struggling. He pointed out that some states, like California, could serve as lessons in governance and tax policy.
This trend of relocation illustrates a broader national conversation about taxes, freedom, and individual choice, reaffirming the appeal of lower-tax states across the United States.
