About 3% of families move to different states each year in search of nicer climates, lower living costs, and other advantages. The rise of remote working is giving people more flexibility on where to locate. At the same time, more than 3 million people reach the age of 65 each year, and many are looking for attractive places to retire.

How can states attract interstate movers? IRS data suggest that tax burdens are one driver of migration. Of the 25 lowest-tax states, 20 enjoyed net in-migration from other states in 2020.