Why Millionaires Are Fleeing New York In 2025

Have you ever wondered what happens when a city’s brightest stars start to dim? New York City, long the beating heart of global finance and culture, is facing a quiet but seismic shift. The wealthy—those who’ve powered the city’s economy and shaped its skyline—are leaving. Not in a trickle, but in a steady stream, taking their fortunes, influence, and ambitions with them. It’s a story that’s as much about human nature as it is about numbers, and it’s one worth unpacking.

The Great Wealth Exodus: What’s Happening?

For years, New York has been synonymous with opportunity. From Wall Street’s trading floors to Broadway’s bright lights, the city has drawn the ambitious and the affluent. But something’s changed. High-net-worth individuals—the millionaires and billionaires who call New York home—are packing up and heading for greener pastures. This isn’t just a vibe or a rumor; the data backs it up. Between 2019 and 2020, the number of New Yorkers earning over $750,000 dropped by nearly 10%, and those earning between $150,000 and $750,000 fell by about 6%. That’s thousands of people—and billions of dollars—gone in a blink.

Why does this matter? Because these folks aren’t just rich. They’re the backbone of the city’s tax base. The top 1% of earners—roughly 41,000 people—pay over 40% of New York City’s income taxes. The top 10%? They cover about two-thirds. When they leave, the city’s budget takes a hit, and the ripple effects touch everyone—from subway riders to schoolkids to small business owners. It’s a classic case of the few carrying the many, and when the few start to vanish, the whole system wobbles.

The wealthy don’t just pay taxes; they fund the city’s soul—its arts, its hospitals, its dreams.

– Urban economist

Where Are They Going?

So, where are these millionaires headed? Florida’s a big draw, and it’s not hard to see why. With no state income tax and year-round sunshine, places like Miami-Dade, Palm Beach, and Broward Counties are rolling out the red carpet. In just a few years, over 125,000 New Yorkers moved to Florida, taking nearly $14 billion in income with them. That’s not pocket change—it’s a fortune that could’ve funded schools, parks, or infrastructure. But Florida’s not the only destination. Texas is making a strong case with its business-friendly vibe and lower taxes. Even Connecticut, once a sleepy suburb, is pitching itself as a low-tax haven just a train ride away.

I’ve always found it fascinating how people vote with their feet. It’s not just about money—it’s about feeling valued. When a city treats its wealthiest residents like ATMs, they start looking for places that see them as partners, not punching bags. And other states know it. They’re building ecosystems—think top-tier schools, cultural hubs, and financial districts—designed to lure New York’s elite. Austin, Nashville, and Miami aren’t just cities; they’re magnets for the disenchanted.

• Florida: Zero state income tax, warm weather, and a growing financial scene.
• Texas: Business-friendly policies and a new stock exchange to rival New York’s.
• Connecticut: Lower taxes and proximity to the city without the fiscal baggage.

The Tax Tipping Point

Let’s talk about the elephant in the room: taxes. New York’s tax rates are among the highest in the nation, and they’re about to get higher. A recent mayoral candidate’s proposal for a new millionaire’s tax would slap an extra 2% on incomes over $1 million, pushing the combined city and state rate to nearly 17%. Add federal taxes, and you’re looking at a top rate of 54%. That’s not just steep—it’s a dealbreaker for many. I mean, who wants to hand over more than half their income to a system that seems to take them for granted?

The wealthy don’t even need to move far to escape. A quick hop to Westchester, Long Island, or New Jersey does the trick. These areas offer the perks of city proximity without the crushing tax burden. It’s no wonder developers are pushing back against policies like rent control, and realtors in other states are fielding calls from New Yorkers ready to bolt. The numbers tell the story: between 2018 and 2022, New York lost $10 billion in adjusted gross income to Florida alone.

The Ripple Effects: More Than Money

It’s tempting to frame this as a rich-people problem, but it’s not. When millionaires leave, they don’t just take their bank accounts. They take their philanthropy, their patronage, their networks. New York’s cultural scene—its museums, theaters, and charities—relies heavily on wealthy donors. When they go, the city’s vibrancy fades. I’ve seen it firsthand: a gala that used to draw A-listers now struggles to fill seats. A hospital wing named after a benefactor? That benefactor’s now funding a clinic in Miami.

Then there’s the economic domino effect. High earners support jobs—think accountants, lawyers, chefs, even baristas at the coffee shops they frequent. When they leave, those jobs shrink or vanish. Small businesses feel the pinch, and the city’s tax base erodes further, leaving less for public services like transit or schools. It’s a vicious cycle: higher taxes drive out wealth, which cuts revenue, which leads to… you guessed it, more taxes.

A city that loses its patrons risks losing its pulse.

– Cultural historian

Why Are They Really Leaving?

Taxes are the obvious culprit, but there’s more to it. I think it’s about respect—or the lack of it. Policymakers often talk about the wealthy paying their “fair share,” but for many high earners, it feels like they’re being punished for success. New proposals seem to pop up every budget cycle, each one targeting the same small group. It’s not just the money; it’s the message: “We don’t value what you bring.” And when you’re mobile—and the wealthy are nothing if not mobile—you start looking for places that do.

Other factors play a role too. Remote work has untethered people from the city. Why stay in a high-cost, high-tax environment when you can run your business from a beach in Florida or a ranch in Texas? Add in concerns about crime, infrastructure, and quality of life, and the decision to leave becomes less about “if” and more about “when.”

1. Taxation: Combined rates nearing 54% for top earners.
2. Mobility: Remote work and easy relocation options.
3. Quality of Life: Rising crime and strained infrastructure.

The New Divide: Winners and Losers

Here’s where it gets ironic. Policies meant to reduce inequality—like soaking the rich—are creating a new kind of divide. On one side, you’ve got high-tax states like New York, leaning on a shrinking pool of wealthy residents. On the other, you’ve got places like Florida and Texas, which balance their budgets without scaring off their top earners. The result? A geographic split where wealth, jobs, and opportunity flow to friendlier jurisdictions. It’s not the redistribution politicians promised—it’s a relocation of prosperity.

Perhaps the most striking part is how this reshapes the city’s identity. New York has always been a place where ambition thrives, where people come to make it big. But if the successful are leaving, what happens to that spirit? The city risks becoming a shadow of itself, a place known more for what it was than what it is. I can’t help but wonder: can a city still be “great” if its greatest assets are fleeing?

What Can New York Do?

So, is New York doomed? Not necessarily. But it’s at a crossroads. The city could double down on its current path, chasing short-term revenue with higher taxes and risking long-term decline. Or it could rethink its approach, treating wealth as a partner rather than a piggy bank. Some ideas are already floating around: streamlining bureaucracy, cutting unnecessary regulations, and investing in quality-of-life improvements like safer streets and better schools.

Here’s my take: New York needs to remember why people came here in the first place. It’s not just about money—it’s about opportunity, energy, and the chance to be part of something bigger. If the city can recapture that, it might convince its millionaires to stay. But that means tough choices, like rethinking tax policies and prioritizing growth over ideology.

City Success Formula: Opportunity + Innovation + Fair Policies = Prosperity

The Bigger Picture

This isn’t just New York’s story—it’s a cautionary tale for any city or state tempted to overreach. Wealth is mobile, and in a world where people can work from anywhere, loyalty to a place isn’t guaranteed. I’ve always believed that cities thrive when they balance ambition with pragmatism. Punishing success might feel good in the moment, but it’s a losing game in the long run.

New York’s still got a lot going for it—history, culture, grit. But it’s got to decide what it wants to be: a city that chases headlines or one that builds a future. The millionaires are watching, and they’re not waiting around for the answer. Will New York rise to the challenge, or will it keep exporting its greatest asset—its people?

Wealth doesn’t stay where it’s not wanted. It finds a home where it’s welcomed.

– Financial analyst

As I think about New York’s future, I can’t shake the image of a city at a tipping point. It’s still the place where dreams are made, but for how long? If the wealthy keep leaving, they’ll take more than their money—they’ll take a piece of the city’s soul. And that’s a loss none of us can afford.