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- Coastal state loses over 180,000 residents to domestic migration over high taxes (marketrealist.com)
Massachusetts Sees Mass Exodus of Young Residents, High Taxes Cited as Major Factor
Boston, MA – Massachusetts, a state known for its progressive policies and, notably, its high taxes, is experiencing a significant “outmigration problem,” according to a recent analysis from the free-market think tank, the Pioneer Institute. The report reveals that over the past five years, the Bay State has seen a net loss of more than 180,000 domestic residents, predominantly young individuals, who have chosen to relocate elsewhere.
This sustained outflow of residents, as highlighted in the report titled “The Massachusetts Labor Force: Now and Beyond,” signals a “structural shift” that researchers warn could jeopardize the future of the state’s labor force. The analysis suggests that this trend is not merely a byproduct of remote work or the pandemic, but rather a deeper phenomenon that has been escalating even before the global health crisis.
Between April 2020 and July 2025, the state experienced a net outflow of 182,000 residents. This demographic decline is particularly concerning as those leaving are primarily in the 26 to 34 age bracket, representing the state’s vital future workforce and tax base. With immigration to the state reportedly at a standstill, this exodus presents a significant challenge to future labor force growth.
One major contributing factor cited for this outmigration is the state’s high tax burden. Massachusetts ranked 43rd among the 10 lowest states in the Tax Foundation’s 2026 State Tax Competitiveness Index.
The report noted that states at the bottom of this index often share common issues, including “complex, non-neutral taxes with comparatively high rates.” Additionally, the unemployment rate in Massachusetts has climbed to 4.8%, surpassing many of its neighboring states.
While the state’s labor force did rebound to nearly 4 million workers at its peak in 2025, largely due to a record influx of international immigration (adding 230,000 new residents between 2022 and 2024), the report cautions that this masks deeper structural issues. Authors predict that “out-migration could lead to population loss and a reduction in the labor force in 2026, as immigration is expected to drop sharply.” The economic outlook also appears challenging, with growth bottoming out at 3.2% in 2023.
Beyond the immediate economic concerns, Massachusetts faces broader demographic challenges. In 2024, the state recorded the seventh-lowest fertility rate in the nation, indicating a falling rate of natural population growth. Only 15.5% of residents are under 15 years of age, two percentage points below the national average, while the proportion of older adults continues to rise.
Despite these challenges, Massachusetts remains the most educated state in the country, with 53% of adults holding a bachelor’s degree. However, even this strength may be at risk.
A separate estimate cited in the report suggests that the college-educated workforce in the state could shrink by 192,000 by 2030, a consequence of both domestic outflows and retirements. The findings underscore a critical need for the state to address these underlying issues to retain its residents and maintain its economic vitality.
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- Coastal state loses over 180,000 residents to domestic migration over high taxes (marketrealist.com)