So does a new projection from California’s Finance Department, which expects the state’s population to stagnate at 39 million for the next few decades. While that study does not cover the same period as the most recent IRS data, both point to a worrying trend. The company says, “California’s high personal income tax rates seem discouraging for many high-wealth individuals.” California lost about $343 million in tax revenue during 2021 due to out-migration, according to a study from the online real estate firm. Those heading out of state tend to be wealthier residents, and their exit threatens to blow a hole in the state’s finances. That marks the third consecutive year that California has seen a net decline in population.
That dream is over for an estimated 343,000 Californians who fled the state between July 2021 and July 2022, according to data from the Census Bureau. For decades, California has been a desirable destination for Americans lured by the promise of riches, stardom, or at least a good place to surf.
