California is a great place to live, if you can afford it. You have the ocean and the mountains, plus lots of outdoor activities. Unfortunately, the state also has an incredibly high cost of living and taxes. This makes it challenging for many families to reach their goals. The Golden State lost nearly half a million residents in 2022. These are 11 states seeing the largest influx of Californians.
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Texas
Texas is the leading destination for people leaving California. Lower taxes and large cities are two key drivers for people to relocate to Texas.
Florida
Reports indicate people move between the two states at a near-net-zero rate. Regardless, Florida is a popular destination for defectors from California.
Beaches, taxes, and less regulation are the driving factors.
New York
Surprisingly, New York is a popular spot for Californians to move to. Taxes and housing prices may be somewhat lower but not markedly different, especially if you’re near New York City.
Washington
People often leave California for Washington State because they want to stay on the west coast. They can find similar jobs, not to mention more affordable housing.
Arizona
Arizona is a natural destination for people leaving California. They have lower taxes and more affordable housing.
Furthermore, they can find a lot of opportunities in Phoenix and Tuscon.
Oregon
Oregon is another natural locale for former Californians. Lower housing prices abound, not to mention plenty of outdoor activities.
Oregon, generally speaking, is more liberally minded, making it a good choice for Californians looking to escape to friendly confines.
Colorado
Colorado has a lot to offer, from plenty of skiing to wide-open spaces. It’s also a popular choice for former California residents.
While the cost of living is high, it’s still cheaper than in California.
Nevada
Nevada and Arizona are similar for many former California residents. Both have a light tax burden and border the state.
Furthermore, even some professional teams are leaving California for Las Vegas. That’s a win-win for sports fans.
North Carolina
North Carolina may seem like an odd destination for former Californians. It’s not. The state is growing significantly and has a diverse economy.
It’s also a top choice for companies looking to leave California, so the two go hand in hand.
Montana
Montana is another odd choice, but only on the surface. It offers plenty of wide open spaces. That is not something found in California.
Property taxes are low and the cost of living is below the national average. Combine that with the beauty that’s found in Montana, it’s no wonder why Californians are moving there.
Utah
Utah is another seemingly odd choice for Californians, but the state has plenty to offer. Bryce Canyon and Zion National Parks offer plenty to do for outdoor enthusiasts. You can also find skiing and a big city like Salt Lake City.
Another benefit it has going it is Utah is relatively tax friendly, especially in relation to California.
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I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.
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