**New York’s shrinking population of millionaires is carrying a multibillion-dollar financial cost, according to a new analysis that warns the state’s tax base has been steadily eroding for more than a decade—and some economists fear the trend could accelerate under Mayor Zohran Mamdani’s proposed tax policies.**
The analysis found that New York’s share of America’s millionaires fell from **12.7% in 2010 to just 8.7% in 2022**, marking the steepest decline of any state during that period. Researchers estimate that if New York had simply maintained its previous share of the nation’s wealthy households, the state would have generated approximately **$10.7 billion more in personal income tax revenue in 2022 alone**.
The report argues that the loss of high-income residents has already created a significant hole in state finances, raising concerns about the long-term sustainability of a tax system that relies heavily on top earners to fund public services. Because New York depends disproportionately on income taxes paid by its wealthiest residents, even relatively small shifts in where affluent taxpayers choose to live can have an outsized impact on state revenue.
Those concerns have intensified following the election of **Mayor Zohran Mamdani**, whose calls to **”tax the rich”** and increase taxes on high-income earners have sparked debate over whether additional tax hikes could encourage more wealthy individuals, investors, and business owners to relocate to lower-tax states such as Florida or Texas.
Supporters of higher taxes argue that affluent residents should contribute more to fund affordable housing, transit, education, and other public services, and they dispute claims that tax policy alone drives migration. Critics, however, contend that New York has already experienced a substantial outflow of wealthy taxpayers and warn that further increases could accelerate the trend, reducing rather than increasing tax collections over time.
According to the analysis, the state had already forfeited an estimated **$10.7 billion in potential personal income tax revenue** by 2022 because of its declining share of the nation’s millionaires. Opponents of additional tax increases argue that expanding the tax burden on high earners risks widening that gap even further if more affluent residents and businesses decide to leave the state, potentially placing greater pressure on New York’s finances in the years ahead.
