Historically, young millionaires have been drawn to New York’s global financial center, Silicon Valley’s tech hub and Hollywood’s entertainment industry in pursuit of wealth and opportunity.
While New York and California still reign as the states with the youngest millionaires, many affluent young households are relocating to other states in an attempt to hold onto more of their wealth — in search of a lower cost of living, a luxurious lifestyle and a lighter tax burden — such as no state income tax.
Learn More: 5 Ways You Can Reduce Your Tax Bill Like a Millionaire, According to Robert Kiyosaki
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Another reason to pack up? Several states charge a “millionaire tax” on income. In California, the rate is 10.3%, which may be why 3,226 young Americans aged 26 to 35, earning over $200,000, left the Golden State, according to IRS data compiled by a SmartAsset study.
However, the study may not account for wealth transferred from inheritances, such as stocks and other assets, until they are sold or data on Gen Z millionaires by state, since it wasn’t available.
Beyond income tax, real estate levies such as the “mansion tax” in several states and in Los Angeles County have also influenced young millionaires to head for greener pastures. The mansion tax applies to properties valued at over $1 million and can vary by location, ranging from 1% to 16%, according to CNBC.
These are the states with the youngest millionaires, according to 2024 IRS tax return filings. Also, learn about the youngest billionaires and how they built their empires.
California
- Total young wealthy households: 184,454
- Net gain of rich young households: -3,226
- Average adjusted gross income (AGI) per household: $480,776
- Inflow of wealthy young households: 7,411
New York
- Total young wealthy households: 84,586
- Net gain of rich young households: -345
- Average AGI per household: $457,137
- Inflow of wealthy young households: 7,235
Read Next: What Class Do You Actually Belong To? The Income Breakdown Might Shock You
Washington
- Total young wealthy households: 50,509
- Net gain of wealthy young households: 383
- Average AGI per household: $389,713
- Inflow of wealthy young households: 3,471
Florida
- Total young wealthy households: 33,456
- Net gain of rich young households: 1,786
- Average AGI per household: $526,273
- Inflow of wealthy young households: 3,870
Colorado
- Total young wealthy households: 19,911
- Net gain of rich young households: 720
- Average AGI per household: $389,859
- Inflow of wealthy young households: 2,137
Arizona
- Total young wealthy households: 10,992
- Net gain of wealthy young households: 994
- Average AGI per household: $518,274
- Inflow of wealthy young households: 994
Tennessee
- Total young wealthy households: 10,438
- Net gain of rich young households: 347
- Average AGI per household: $451,633
- Inflow of wealthy young households: 1,051
South Carolina
- Total young wealthy households: 6,120
- Net gain of rich young households: 372
- Average AGI per household: $370,613
- Inflow of wealthy young households: 771
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This article originally appeared on GOBankingRates.com: 8 States With the Youngest Millionaires
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