South Carolina is the fastest-growing state in the country when it comes to internal migration of US citizens.
From 2022 to 2023, the state experienced an influx of about 59,000 Americans moving in from all across the country, which was equivalent to a little more than one percent of its population of 5.57 million, according to the most recent IRS migration data.
Texas and Florida had larger gains in terms of raw numbers due to the size of the states, but the percentage gain in South Carolina outpaced the rest of the country.
Both Texas and Florida drew a little more than 110,000 Americans, but their populations are 31.7 million and 23.3 million, respectively.
Meanwhile, US citizens have been leaving New York and California in droves. New York lost a little under 160,000 Americans from 2022 to 2023, and California lost just over 200,000.
The IRS migration data is based on the number of tax returns filed with the federal agency, which includes detailed information such as family sizes.
About 29,000 more Americans filed returns in South Carolina, which represented a taxable income boost of a little more than $4.1 billion for the state.
That likely contributed to South Carolina's healthy state budget in fiscal year 2023-2024.
South Carolina has the largest per-capita internal migration in the country. The state's governor, Henry McMaster, has cited large state budget surpluses for the past few years
From 2022 to 2023, South Carolina had an influx of about 59,000 Americans, which is equal to a little more than one percent of the state's population. The downtown of the state's most populous city, Charleston, is pictured
Florida had a larger influx of Americans by raw numbers, but the percent gain was smaller than that of South Carolina. Miami Beach is pictured
Texas also had a larger influx of Americans by raw number, which was a little more than 110,000 for both Texas and Florida. The capital of Texas, Austin, is pictured
The state's economy had 'a record budget surplus... totaling over $3.8 billion in unexpected revenue,' according to Governor Henry McMaster's Executive Budget that year.
In fiscal year 2025-2026, the state continued to have a healthy $1.8 billion surplus, according to the Executive Budget that year.
On the other hand, from 2022 to 2023, California lost around 100,000 American tax filers, representing a taxable revenue decline of about $12 billion.
New York lost around 72,000 American tax filers, representing a taxable revenue decline of just under $10 billion.
While South Carolina experiences a state budget surplus year after year, New York and California are both staring down the barrel of projected multi-billion dollar budget deficits in fiscal year 2026 to 2027.
According to the California Legislative Office, the state is contending with a $3 billion shortfall for the upcoming fiscal year.
Last August, New York State Comptroller Thomas DiNapoli sounded alarms over a gargantuan projected cumulative state budget deficit of $34.3 billion through fiscal year 2029.
The comptroller said that the state is experiencing 'waning pandemic relief funds' and will become increasingly reliant on tax revenue in the coming years.
New York State Comptroller Thomas DiNapoli has projected a cumulative budget deficit of $34.4 billion through fiscal year 2029
New York lost around 72,000 American tax filers from 2022-2023, representing a taxable income revenue loss of just under $10 billion. New York City is pictured
California lost around 100,000 American tax filers from 2022 to 2023, representing a taxable income revenue decline of around $12 billion. Los Angeles is pictured
He also said that more than half of New York's tax revenue comes from personal income tax. If filers continue to leave at a high rate, that represents a particularly difficult challenge for the state's budget.
New York City, which contributes close to 55 percent of the state's total tax revenue and nearly 60 percent of the state's income tax stream, according to the CUNY Institute for State & Local Governance, is facing its own budget shortfall.
The city's comptroller, Mark Levine, has projected a deficit of $2.2 billion in 2026 and $10.4 billion in 2027.
'This is the first time since the Great Recession that the City faces a budget shortfall of this magnitude,' Levine said in a January announcement.