How State and Local Tax Rates Impact Interstate Migration: An Analysis of Interstate Migration Patterns Since the Passage of the Tax Cuts and Jobs Act

James Endyke ’26, Business Economics/Accountancy major Faculty mentor: Dr. Fang Dong, Economics The Tax Cuts and Jobs Act (TCJA), enacted in 2018, includes a provision that limits the federal tax deduction for state and local taxes paid to $10,000. This paper uses panel data from each state from 2013-2022 to examine whether state and local taxation has had a more pronounced effect on interstate migration since this bill was enacted. The fixed and random effects regression models constructed suggest that, while the impact of property and sales taxes on interstate migration has not significantly changed, the deterrent effect of state income taxation has grown significantly stronger since 2018.