IRS Data Shows Nebraska Among Worst in Out-migration of Taxpayers, Residents Pre-Pandemic

IRS Data Shows Nebraska Among Worst in Out-migration of Taxpayers, Residents Pre-Pandemic
Graphic courtesy Platte Institute
June 23rd, 2022 | Scott Miller

The Platte Institute says recently-released IRS data shows Nebraska toward the bottom of states when it comes to loss of income due to out-migration during the tax year between 2019 and 2020.

Nebraska lost a net of more than 2,300 tax returns to other states, taking nearly $500 million in adjusted gross income out of the state that tax year, the 10th consecutive year of taxpayer and resident loss.

Only five states lost more income than Nebraska as a percentage of their total Adjusted Gross Income, and only 11 states lost more in total dollars.

Senior Policy Advisor Michael Lucci, who works for the organization remotely out of Texas, told reporters Thursday taxes are among a variety of factors and state policies that blend together to impact where people want to live.

“For me, and I think that this speaks to a lot of different, you know, younger families, the opportunity for the kids on education is hugely important. I would make sacrifices in other areas for that, but then the opportunity to have a better economic situation, and to save more of the money that you earn is also hugely important to me,” said Lucci. “So, it depends on where you are in life. As we just talk about retirees, their priorities are gonna be a little bit different.”

Lucci says in recent years, the biggest impacts have come from the limit on state and local taxes that can be deducted on federal returns, and then the expansion of remote work that took place with the pandemic, which is likely to continue well into the future.

Nebraska lost the most to Florida and Texas, and picked up new residents and taxpayers primarily from surrounding states.

The analysis of the IRS data can be found at on the Platte Institute website.


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