The recent surge traces to Arizona adopting a 2.5% flat tax in July 2021, with the new system taking effect for the 2023 tax season following a brief legal challenge.

Specifically, they’ve been flocking to low-tax destinations such as Florida, Texas, North Carolina, Arizona, and Tennessee. Between April 1, 2020, and June 30, 2023, high-tax states lost net 2.8 ...

“Arizona, for instance, combines a favorable flat 2.5% income tax rate with abundant sunshine,” he said. Related: These are the most tax-friendly states if you work in retirement ...