STATE CAPITOL — One in every 100 New York residents left the state in 2020 — a significant surge in out-migration, despite an increase in taxpayer filings, according to state Comptroller Tom DiNapoli.
A new report, released by the comptroller's office Tuesday, examines the state’s in- and out-migration by tracking the number of personal income filings. It found, during 2020 and 2021, more than a half million New York personal income taxpayers (PIT) moved into and out of the state. In 2020, out-migration skyrocketed largely due to people leaving New York City during the COVID pandemic — a trend echoed in other large cities nationwide.
The total number of resident filers increased during 2020, largely due to high financial market levels and temporary changes to the state’s unemployment benefits authorized by federal pandemic relief programs, which pushed up personal income. The total number of resident taxpayers then declined in 2021, remaining only slightly higher than numbers in 2019.
The number of non-resident taxpayers declined in 2020, but bounced back in 2021, exceeding pre-pandemic levels for all income levels. Despite this, the number of taxpayers moving out was still greater, resulting in a net out-migration of more than 39,200 tax filers, more than one-third higher than pre-pandemic averages.
The comptroller's report found, in 2020, the greatest number of filers leaving the state were single filers. However, that has since returned to below pre-pandemic levels.
“The pandemic upended everyone’s life and caused a big shift in the movement of New York taxpayers in 2020,” DiNapoli said in a release. “While patterns shifted closer to pre-pandemic trends in 2021, net out-migration rates remained higher, particularly for families. Policy makers need to make sure the state remains an attractive, affordable place to work and to live. Doing so will help maintain the state’s largest revenue source to ensure vital services continue in order to provide a high quality of life for all New Yorkers.”
PIT is the state’s largest revenue source, with about 10.9 million taxpayers contributing to almost $60 billion in taxes in 2021. Decreases in personal income filings are typically a result of economic downturns, such as high unemployment, delayed entry into or out of the labor force, changes in filing status or lower non-wage income.
Among PIT filers, 87% are residents, 10% were non-residents who only pay tax on income received from work, businesses or other income sources located in the state, and 3% are part-year residents who file a return if they move into or out of the state.
New York’s out-migration is a frequent talking point for Republicans in the state. Last year, during the gubernatorial race between now-Gov. Kathy Hochul and former U.S. Rep. Lee Zeldin, the candidates sparred on the subject during a debate. Zeldin blamed the population loss on high taxes and crime. Despite a spike in crime during the pandemic, crime in New York City remains at historic lows. Outside of the city, crime trends for murder, rape, robbery and aggravated assault have also declined. New York is, however, one of the states with the highest taxes.
At a GOP rally in Schenectady last month ahead of Election Day, state Sen. James Tedisco, R-Saratoga Springs, criticized the state’s current leadership and noted the state’s low birth rate, though he incorrectly stated it is the lowest in the country. Data from the CIA Factbook shows New York has the 12th-lowest birth rate in the country.
“Young people are leaving the state in droves. The affordability factor is unbelievable,” he said. “If [Democrats] had an agenda that was working on the local, state and federal level, state’s like ours wouldn’t be No. 1. This is a beautiful state. People shouldn’t be walking out in droves, they should be coming to New York state.”