More people, less wealth going in and out of Indiana
(The Center Square) – Indiana had more than a half-billion dollars in personal income leave the state in 2022, continuing a trend that has been happening since at least 2005, according to data from the Internal Revenue Service.
Last week, the federal agency released migration data detailing how many people filed their 2022 tax returns from a different state or country than they did the previous year. For the sixth straight year, Indiana gained more residents than it lost as it picked up 6,326 individuals listed on the 2022 returns.
However, when accounting for the adjusted gross incomes from individuals who left the state versus those who arrived there, Indiana experienced a net loss of $551.3 million.
IRS migration data available on its website goes back to the 2005 filing year. Indiana has lost at least $139 million in personal income each year. The 2022 total is the highest on record, eclipsing the $550.1 million loss that occurred in 2016.
According to the 2022 IRS data, 69,968 returns were filed elsewhere by individuals or households who filed from Indiana in 2021. Those returns accounted for 119,054 people and a total AGI of $5.39 billion.
The data also shows that 69,545 returns filed in Indiana in 2022 were from people or families who filed elsewhere the year before. Those returns accounted for 125,380 individuals and incomes of $4.84 billion.
From a regional perspective, Indiana is gaining residents and income from three of its four neighboring states. Indiana had a net gain of nearly 9,200 people from Illinois and gained $445 million in income as a result. It picked up a net of almost 1,000 people from Kentucky and $34.2 million in income. The state welcomed 778 more people from Ohio than Hoosiers who moved to the Buckeye State and gained $53.9 million in adjusted gross income as well.
Only Michigan had more Indiana residents move there than vice versa. In 2022, Indiana lost a net of 754 residents to its neighbor to the north. The state also lost a total of $172.5 million as a result, the second-largest amount to any state.
Indiana is losing most of its personal income to southern and western states. More than 3,700 people moved from Indiana to Florida than the other way around, resulting in a net loss of more than $562 million of income. Almost 1,000 more Hoosiers moved to North Carolina than vice versa, taking with them more than $109 million.
Texas gained 1,830 more people and almost $78 million in personal income from Indiana than it lost in 2022, while Georgia picked up a net of 1,271 Hoosiers and $45.1 million.
