Americans showed a preference for relocating to low-tax states in 2024, as indicated by the latest U.S. Census Bureau data on interstate migration and commercial datasets from U-Haul and United Van Lines. The trend reflects ongoing movement patterns where people favor lower-tax environments over higher-tax regions.

The U.S. Census Bureau reported that between July 1, 2023, and June 30, 2024, South Carolina experienced the highest population growth due to net inbound domestic migration at 1.26 percent. Idaho followed with a growth rate of 0.83 percent, Delaware at 0.79 percent, North Carolina at 0.76 percent, and Tennessee at 0.68 percent. Conversely, Hawaii faced the most significant population decline due to outbound migration at 0.65 percent, closely followed by New York and California at 0.61 percent each.

The datasets from moving companies support these findings despite being influenced by their market coverage and share differences. "As in the Census data," South Carolina led in U-Haul's study for inbound-to-outbound one-way moves ratios, followed by Texas, North Carolina, Florida, and Tennessee.

United Van Lines reported West Virginia had the highest inbound-to-outbound move ratio among its customers, with Delaware following closely behind.

"These interstate moving data shed light on an ongoing trend: Americans are continuing to leave high-tax...states in favor of lower-tax alternatives." Of the states with tax burdens below the national average in 2022, a majority saw net inbound migration during FY 2024.

A notable observation is that states without individual income taxes or those with neutral tax structures have attracted more movers than those with higher tax rates.

In response to increased mobility due to remote work options post-pandemic, several states have adjusted their tax policies to attract residents and businesses alike.

For some individuals—particularly those who are highly mobile—tax differentials play a direct role in relocation decisions; however, other factors like job opportunities and cost of living also influence such decisions significantly.

Many states have taken steps toward improving their tax competitiveness recently—a move deemed necessary given this shifting landscape—while others may need to consider similar changes or risk lagging behind as competition intensifies across state lines.