As some blue states pursue wealth taxes and tax hikes, Florida shows that pro-growth tax policies attract people, businesses and investment.

Despite criticism that zero income taxes only benefit high-earners, the Sunshine State’s booming economy and positive migration trends are evidence that such policies merit careful consideration by policymakers nationwide.

Florida is one of the only states in America without a personal income tax. As such, the Tax Foundation ranks Florida fifth on its State Tax Competitiveness Index, reflecting a competitive overall structure. Building on this already pro-growth environment, Gov. Ron DeSantis has advocated further reforms, eliminating property taxes altogether.

Economic analysis in the January 2026 White House Council of Economic Advisors report reinforces the advantages of this approach. Drawing on U.S. state-level data, the report finds that income taxes drive outmigration—especially of high-earners and innovators—reduce entrepreneurship, displace business activity and slow GDP growth. In contrast, states without income taxes, such as Florida, allow individuals and businesses to keep more of their earnings. This fosters wage growth, population inflows, investment and economic expansion.

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Internal Revenue Service (IRS) migration data from tax year 2022-2023 illustrates this dynamic. Florida gained 55,359 federal income tax filers, a net inflow of $20.7 billion in Adjusted Gross Income (AGI) or nearly $185,000 per new resident. Unleash Prosperity’s Vote With Your Feet project similarly discovers that between 2012 and 2023, Florida gained over 1.7 million people and $223.7 billion in personal income from New York, New Jersey, and Illinois migrants.

For reference, Texas ranked second, gaining nearly 1.5 million people and $63 billion in AGI, which demonstrates the vast attractiveness of low-tax policies. Blue states like California and New York have combined losses of nearly 4 million people and $238.7 billion in AGI in that same time frame. Winning states’ tax policies secure larger tax bases and therefore see higher inflows of income and investment, essential for their tax competitiveness in a mobile economy.

It’s not just the climate that makes the Sunshine State an attractive destination. As workers and retirees decide where to live, states that have low tax and regulatory burdens, targeted relief, and stronger budget discipline tend to gain residents, income, and reduce costs for families. For instance, the Florida Taxation Bill (HB 7073) provided approximately $1.07 billion in combined state and local tax relief for Fiscal Year 2024-2025. This legislation invoked back-to-school, disaster preparedness, July freedom month and skilled trades equipment tax holidays, easing costs for consumers.

Since families and working-age individuals drive economic output, low tax policies help mitigate the cost-of-living and fuel Florida’s sustained growth. Since 2019, Gov. DeSantis has secured nearly $6.7 billion in tax cuts while maintaining a budget surplus. Florida reported substantial reserves of $15.7 billion and a $3.8 billion projected surplus for Fiscal Year 2026-2027. The Sunshine State is a glowing example of fiscal responsibility with a reputation for keeping taxes low and the budget balanced, securing a stable long-term future.

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Florida’s recent property tax debate takes this philosophy further. Though it was never adopted, HJR 201 would have amended the state constitution to exempt homestead property from all assessed value taxation, excluding school district levies. This proposal was explicitly intended to attract higher-income taxpayers to the state. The case for property tax relief remains a policy priority for Gov. DeSantis and signals a replicable blueprint for other states.

Florida is an ideal case study demonstrating that a conservative tax posture can promote household and business prosperity. Policymakers in Tallahassee have shown that low taxes, restrained spending, and pro-growth priorities produce tangible benefits for residents.

While no single model applies universally—given state differences in economic structure, demographics, and obligations—the core principles of tax competitiveness and fiscal lessons offer valuable lessons. States seeking to grow in people and wealth would be well-served by replicating parts of Florida’s tax approach.