Massachusetts Millionaire Count Surges Post 'Millionaires Tax'

Recent reports from several progressive research organizations, including the Institute for Policy Studies, indicate that Massachusetts has experienced a significant increase in high-net-worth residents since the implementation of the state's 'millionaire's tax' in 2022. Contrary to concerns that the 4% surtax on income over $1 million would drive wealthy individuals out of the state, data show that the number of residents with at least $50 million in wealth grew by over 35% and those earning $1 million or more annually increased by nearly 40%. The collective wealth of Massachusetts millionaires also rose sharply, and the surtax generated $2.46 billion in its first year, supporting investments in public education and transportation. Researchers and advocates argue that high-net-worth individuals tend to be less mobile due to strong personal and business ties, making them less likely to relocate solely because of higher taxes. While the state continues to face challenges related to the overall cost of living, the data suggest that the new tax has not triggered an exodus of the ultra-wealthy. Instead, Massachusetts is being cited as a potential model for other states pursuing progressive taxation.