State Comptroller Thomas P. DiNapoli revealed in a new report that more than one out of every 100 personal income tax filers left New York State in 2020, marking a significant shift in taxpayer movement due to the COVID-19 pandemic. This exodus quadrupled compared to the previous year and still exceeded pre-pandemic levels despite a decline in 2021.
"The pandemic upended everyone's life and caused a big shift in the movement of New York taxpayers in 2020," DiNapoli stated. "Net out-migration rates remained higher in 2021, especially for families, indicating the need for policies to make New York an attractive place to work and live."
The report, examining pandemic years 2020 and 2021, shows a worrying trend for the state's largest revenue source, personal income tax (PIT), which accounted for $60 billion paid by 10.9 million taxpayers in 2021. The number of taxpayers grew in 2020, likely due to high financial market levels and enhanced unemployment benefits, but declined slightly in 2021, still above the 2019 figure.
A notable decrease in full-year resident taxpayers occurred in 2021 among those earning less than $100,000. Conversely, higher-income filer numbers increased. Nonresident taxpayers declined in 2020 but bounced back in 2021, exceeding pre-pandemic levels. Part-year filers increased in 2020 and 2021, suggesting a potential loss of economic activity for the state.
From 2015 to 2019, an average of 28,700 taxpayers left New York annually. This number soared to nearly 112,500 in 2020, almost four times in 2019. Although the in-migration rebounded in 2021, out-migration still resulted in a net loss of over 39,200 taxpayers, one-third greater than the pre-pandemic average.
Single filers comprised over half of the net out-migration in 2020, with married and head-of-household taxpayers also leaving at elevated rates. This trend continued in 2021, particularly among married filers earning between $100,000 and $500,000.
New York City experienced the brunt of this out-migration in 2020, with over two in every 100 city residents leaving. Taxpayers leaving the state altogether drove this surge, accounting for 71.5% of the state's net out-migration. In 2021, the city saw a net gain of 2,221 taxpayers, primarily from other parts of the state. However, the gain was offset by a net loss of 761 taxpayers who left New York entirely.
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| State Comptroller James P. DiNapoli File Photo |
DiNapoli's report highlights the shifting demographics and challenges facing New York in retaining and attracting residents, emphasizing the pandemic's significant impact on taxpayer migration patterns.