Nearly $2.8 billion left NJ in one year as residents moved to lower-tax states

💰 IRS data analyzed by business leaders shows New Jersey has lost $48.25 billion in taxable income since 2004.

➡️ Florida, New York and Pennsylvania saw the biggest inflows of former New Jersey wealth in 2022-23.

⚠️ Business leaders warn proposed tax increases could worsen New Jersey's outmigration problem.

New Jersey has lost billions in taxable wealth as residents flee high taxes, according to state business leaders.

Income tax data from the IRS is analyzed each year by the New Jersey Business & Industry Association, which has represented employers in the state for over 115 years.

Since 2004, the first year adjusted gross income was tracked, the state has lost a net $48.25 billion in taxable income as people and companies have abandoned the state.

Florida, New York and Pennsylvania gained the most from New Jersey outmigration

Newly analyzed individual income tax data from the IRS shows a net outflow of nearly $2.8 billion for tax year 2022-23. Those are the latest numbers available.

The largest losses were to New York and Florida, which each saw just shy of $3 billion flow to them from New Jersey. Pennsylvania ranked third at $1.5 billion.

Community and state leaders celebrate Samsung’s new offices in Englewood Cliffs on Sept. 22, 2025. (Samsung Electronics America via LinkedIn)

Samsung's move to Texas highlights concerns about business taxes

There's a direct correlation between losing companies and losing individuals who have taxable income, according to Siekerka. She pointed to Samsung's decision to leave the state.

In late May, the tech giant announced it would move its U.S. headquarters from New Jersey to Texas. That means Samsung's C-suite and its big decision makers in New Jersey will also leave — a loss of wealth at the top.

Critics quickly blamed New Jersey's corporate tax rate of 11.5%, the highest of all 50 states and Washington, D.C. Neighboring states, Pennsylvania and New York, have corporate tax rates under 7.5%. Pennsylvania's rate was 9.99% until recently, and it's moving to under 5% by 2031.

Get our free mobile app

"We need to reform taxes in this state. This is a high-cost state. We lack regional competitiveness," Siekerka said.

In her first budget, Gov. Mikie Sherrill has proposed new taxes on companies that could raise $650 million in revenues each year. New Jersey leaders have said they've reached a record-high $60.7 billion budget, but details of the agreement are not yet public.

Report a correction 👈 | 👉 Contact our newsroom