South Carolina has overtaken Florida and Texas as the leading destination for Americans relocating from Democrat-controlled states, according to new IRS data tracking migration patterns in 2022 and 2023. The trend, which began during the COVID-19 lockdowns of 2020 and 2021, continues as citizens seek better job opportunities and lower taxes.
Migration Trends and Tax Revenue
The Palmetto State added 59,000 residents from elsewhere in the United States during this period, equating to one new person for every 100 existing residents. This influx brought approximately $4.1 billion in new income from 29,000 new tax filers. While South Carolina leads in per capita migration, Texas and Florida still attract larger absolute numbers of new residents.
Texas saw 56,473 new filers in 2023, while Florida added 55,349. The outflow from blue states has been substantial: California lost over 100,000 filers and nearly $12 billion in tax revenue under Governor Gavin Newsom, while New York under Governor Kathy Hochul lost $10 billion from 72,000 departing residents.
Continued Migration and Corporate Moves
The trend has persisted into 2025, with a HireAHelper report indicating South Carolina added nearly 80 residents per 10,000 existing population. Many businesses are also relocating to southern states with lower taxes and lighter regulation. Dell Technologies recently announced plans to move its legal incorporation from Delaware to Texas, a symbolic victory for Texas and a blow to Delaware, which collects $2 billion annually in corporate franchise fees. Dell joins other tech giants like Tesla and Oracle in Austin, drawn by Texas's lack of personal income tax, cheaper land, and business-friendly environment.
Michael and Susan Dell have also aligned with the Trump administration in recent months, further emphasizing the political and economic shift toward red states.
