Tax Rates and Migration

The term “millionaire tax” does not necessarily mean a tax imposed only on individuals earning more than a million dollars per year. Depending on the state, landing in the top income tax bracket could require earning more than $1 million (New Jersey, Maryland, and California) or as little as $200,000 (Hawaii and Ohio) or even $150,000 (Arizona). Recent attention has focused on New Jersey, which increased its (former) top income-tax rate by more than 14 percent (from 8.97 percent to 10.25 percent) in 2009 for individuals making more than $500,000 and added a new 10.75 percent tax bracket for those earning more than $1 million.