Young, wealthy households moving into New Jersey, study says

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Lots of people say they plan to move out of New Jersey due to high taxes and an elevated cost of living.

And certainly a large number do.

But guess who’s moving in? The “young and rich.”

That’s what a study of IRS data by financial website SmartAsset found.

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Looking at tax years 2021 and 2022, the study found that the Garden State saw a net increase of 300 “young and rich” households — which the study defined as households with filers aged 26 to 35 with an adjusted gross income of $200,000 or more.

That places it No. 8 in the country for states that gained the most “young and rich” households.

Here’s what the study found for New Jersey:

• Net migration of young and rich households: 300
• Outflow of young and rich households: 3,135
• Inflow of young and rich households: 3,435
• Total young and rich tax returns filed: 35,294
• Average AGI of young and rich households in the state: $388,643.

What makes that interesting is that many high earners are moving out of New Jersey.

“New Jersey and Washington each lost thousands of households earning $200,000 or more when considering taxpayers of all ages. However, these states ranked fifth and eighth, respectively, when it comes to attracting young people in this income range. Washington netted 383 additional young and rich households over one year, while New Jersey gained 300,” the study says.

More: How does New Jersey rank in personal spending? See which states are ahead of us.

Where else are “young and rich” households moving?

Topping the list was Florida, followed by Texas, Colorado, North Carolina, Washington, South Carolina, Tennessee, Arizona and Nevada. Half of the states in the top 10 don’t charge a state income tax. New Jersey is not one of them.

Which states are losing these households?

California lost the most, with a net loss of 3,226 households. That was followed by Illinois, Massachusetts, New York, Pennsylvania, Michigan, Louisiana, Delaware, Minnesota and Missouri.

The study also found that “young and rich” households earned the most in Nevada, with an average AGI of $731,000. Wyoming came in second at $612,000, with Florida third at $526,000.