By: Nick Carraway

New York is losing its grip on America’s wealthy — and the exodus could cost the city and state billions, the New York Post reported.

A new analysis from the nonpartisan Citizens Budget Commission shows that while the Empire State nearly doubled its number of millionaire earners between 2010 and 2022, rivals like Florida, Texas and California surged far ahead. Those states more than tripled — and in Florida’s case, quadrupled — their millionaire households over the same period.

As a result, New York’s share of the nation’s millionaires has dropped by 31% since 2010, according to the New York Post. That decline carries a steep price tag. If the state had merely kept pace with national growth, New York would have pulled in an additional $13 billion in tax revenue in 2022 alone — $10.7 billion for Albany and $2.5 billion for New York City.

The watchdog group told the New York Post that the problem isn’t just abstract. In 2021, thanks to booming Wall Street gains, the shortfall would have exceeded $15 billion. But instead of growth, New York fell from second to fourth in millionaire households nationwide, leapfrogged by Texas and Florida.

Andrew Rein, the commission’s president, said multiple factors are driving the shift. “Taxes matter, but so do quality of life, affordability, public services, and economic opportunities,” he told the New York Post.

Millionaires remain critical to New York’s fiscal health. They make up just 1% of the tax base but contribute roughly 40% of city personal income tax revenue and 44% of the state’s. In 2022 alone, wealthy residents generated $34 billion for state and local budgets, including $28 billion from New York City households, the New York Post reported.

But while half of New York’s 70,000 millionaires still live in the city, their ranks are growing much faster in low-tax states. In 2010, New York had as many millionaire households as Florida. By 2022, Florida had 56% more.

Realtors told the New York Post that the Sunshine State has become a magnet for high-net-worth clients. Broker Jay Batra said many wealthy New Yorkers are drawn to Florida’s tax advantages, pro-business climate, and year-round lifestyle perks. “The state’s vibrant economy and stunning beaches offer a compelling quality-of-life upgrade,” he noted.

Some clients, Batra said, keep their Manhattan properties temporarily but eventually trade them for smaller pied-à-terres as their work patterns shift.

The millionaire migration isn’t just southward. Fairfield County realtor Libby Mc Kinney Tritschler told the New York Post she’s seen a wave of New Yorkers upgrading second homes in Connecticut into full-time residences. She estimates at least 25 wealthy clients have made the move in recent years — half of them leaving New York altogether, and the other half scaling back to smaller city apartments while investing in larger suburban homes.

Tritschler said the trend is reshaping high-end Connecticut markets such as Southport, where limited inventory is fueling fierce competition. “One family buys, and their friends soon follow,” she told the New York Post.

The fiscal watchdog warns that New York’s “value proposition” has dimmed. High taxes, crime concerns, hybrid work, and surging housing costs have combined to dull the city’s appeal. And while California has similarly steep taxes, its millionaire population has still ballooned much faster than New York’s.

Currently, a New Yorker earning $25 million faces a combined state and city tax rate of 14.776% — the steepest in the nation, according to the New York Post. Even at incomes around $2.2 million, residents pay more than their peers in California.