Texas pulled in more than $5 billion in adjusted gross income from people moving across state lines, according to IRS migration data analyzed by the Tax Foundation. Adjusted gross income, the portion of a taxpayer's earnings that the federal government actually taxes, gives a sharper picture of economic weight than raw population counts. California and New York both recorded multibillion-dollar losses on the same measure.
What the IRS data actually show
When someone moves between states, the IRS records where their taxable income went. The Tax Foundation's analysis puts Texas as the second-largest net gainer of taxpayer wealth. Florida attracted the nation's largest overall influx. South Carolina posted the strongest inbound migration rate of any state.
The gap between a headcount and an income count matters. Higher-income arrivals bring spending power, investment capacity, entrepreneurship, and local tax revenue that a pure population tally misses. Economists treat adjusted gross income migration as a more revealing measure of long-term regional strength for exactly this reason.
Four cities running at once
Dallas-Fort Worth led the entire country in raw resident additions last year. Houston, Austin, and San Antonio all ranked among the nation's fastest-growing metropolitan areas at the same time. Four separate growth engines running simultaneously gives businesses larger labor pools, more diversified industries, and a broader customer base than states anchored by a single dominant city.
In 2025, Texas gained roughly 419,000 new residents, more than any other state. Its total economic output reached approximately $2.9 trillion over the same period. Per-capita GDP kept climbing, meaning the state grew more productive per person as it grew larger in population.
Why the income keeps coming
Gabriela von zur Muehlen, chief policy officer at the Texas Association of Business, attributed the trend to confidence: capital flows where confidence is high, and confidence in Texas is running strong. She pointed to the state's tax structure and consistent regulatory environment as the primary draws for businesses and investors relocating from elsewhere.
Texas carries no state income tax. That single feature appears repeatedly in corporate location decisions. The income influx has coincided with years of corporate relocations concentrated in technology, finance, manufacturing, and energy, along with new housing developments, logistics hubs, and commercial corridor expansions across the state's fastest-growing metros.
California and New York remain among the nation's largest and most influential economies. The IRS migration data, Census figures, and federal GDP estimates together show Texas gaining ground by attracting taxable income and population while per-capita output rises. In 2025, it added more new residents than any other state and still grew richer per person.