MA Residents Explain Why They’re Eyeing the Exit

Last week, MOA released a survey revealing the top reasons former residents packed up and left Massachusetts. High taxes and the state’s steep cost of living topped the list. 

Now, Massachusetts residents are putting those concerns into their own words.

Boston.com polled their readers who have considered leaving Massachusetts. Residents were quick to acknowledge what they enjoy most about Massachusetts as their home state, noting the quality of the public schools, health care, and investment in other public services. But many said they are concerned these benefits don’t outweigh the many high costs. Overall, their responses echo what MOA found among more than 1,100 former residents: high taxes and high cost of living are primary drivers pushing people to move to lower-cost areas.

Taxes Are Making Residents Rethink Staying in Massachusetts 

In MOA’s survey, high taxes were the most-cited reason former residents gave for leaving the Commonwealth. More than half said the state’s tax burden played a leading role in their decision to move, while more than 80% said taxes are simply too high. 

Boston.com readers considering their own exit voiced many of the same concerns.

“Once my kids are out of school, I intend to move so I have less of a tax burden…”

“For what we pay, I don’t see a reasonable return anymore.”

“Our taxes keep going up and keep getting increases in fees and monthly costs. The cost of living is just too high in this state…”

One reader specified the burden of the state’s estate tax, particularly as property values grow and residents consider selling their homes.

“The main motivation for us initially was taxes. MA was the worst state in the country at the time for the inheritance taxes. With sky high property values it didn’t take much else to get over the inheritance tax threshold. Add in the cost of living, state income taxes, the weather, the traffic — why stay?”

Estate tax hits along with the continued burden of high property taxes and the income surtax have created layers of costs pushing many to leave. One reader said property taxes on their home have doubled since the pandemic and are becoming “way too high to survive on a fixed income.” Another pointed specifically to the state’s income tax and surtax on income over $1M as reasons New Hampshire is becoming more attractive.

“With the income tax, the millionaire tax, and raising the sales tax I thought NH was a much better option and gives me more money to [invest in] my family.”

That tracks closely with MOA’s survey findings. When former residents were asked which taxes concerned them the most, 71% said income taxes, while 61% said local property taxes. Another 12.7% said the surtax on income over $1 million was the most concerning – a disproportionately large group compared to the share of Massachusetts taxpayers subject to the surtax, which the latest IRS data shows is roughly 1% of all taxpayers in the state.

This is problematic, because driving away residents means a reduced tax base to pay for the state’s ever-growing budget. This is especially true for those subject to the income surtax, which recent IRS data shows represent roughly a quarter of all taxable income in the state. If a sizable group of these taxpayers move elsewhere, the state could find itself losing out on tax revenues.

It’s Not Just Taxes

MOA’s survey also found that broader cost of living concerns remain a major factor pushing residents elsewhere. Nearly half of former residents pointed to rent or home prices as their biggest challenge, while roughly 1 in 5 cited utility costs. 

Residents described the same squeeze.

“Besides the taxes, the unaffordable cost of renting and the completely impossible ability to own a home is forcing me to leave MA.”

“It’s becoming more and more challenging for me and my surrounding neighbors to make ends meet. Utility cost, property and real estate tax, all the taxes on gas, items in Massachusetts make that you have to get a second job to survive.”

For some, the impact extends beyond where they live to where they do business.

“We are working so hard to maintain staying here, but we will leave very soon. I will take my company as well and go to a business-friendly state.”

That concern also mirrors MOA’s findings. Nearly 58% of former residents said they believe their new state offers a better environment for small businesses. 

Former Residents Highlight Improved Quality of Life

Perhaps the biggest challenge for Massachusetts is that residents who leave overwhelmingly say they are better off doing so. 

MOA found that over 82% of former residents said their quality of life improved after moving to their new state. One former resident who moved to New Hampshire said described just how much their life has improved after moving: 

“…since leaving, our quality of life has never been higher after moving to New Hampshire. Our paychecks are heavier, our expenses are lighter, and our lives are happier.”

Former residents responding to MOA’s recent poll gave several reasons for their higher quality of life in their new state, including weather and taxes as some of the top factors.

Conclusion

The message from current and former Bay Staters is clear. While many believe the state’s education, health care, and other state services are top notch benefits to living here, other high cost and tax concerns are outweighing the positives and driving people to competitor states like Florida and New Hampshire.

Beacon Hill has an opportunity to address the pressures driving people away, but ignoring these warnings risks putting Massachusetts further behind the states competing for its families, workers, and businesses.