The Gavin Newsom Effect: More People are Moving from California U-Haul Reports – Again

Groundhog Day came early to California. U-Haul just released its annual Growth Index today which shows Americans continue to move out of high-tax states, choosing instead no-income tax states, or low-tax states.

One of the most startling trends in the United States today is the migration from high tax states to low or no-tax states.

Texas is No. 1 for the second year in a row as, and California is ranked dead last. Again – the 6th year in a row… coinciding with Governor Gavin Newsom’s tenure.

As Americans for Tax Reform reports, “Three of the top four states attracting movers have no personal income tax: Texas, Florida, and Tennessee.”

“California is ranked dead last in the index and imposes the highest top personal income tax rate in the nation at 13.3%.”

As we reported in July, California has lost 361,623 residents and $20,915,598,000 in income to Texas. That number is higher now only six months later.

I have covered California’s out-migration for many years, but have never seen it as severe as it currently is.

California is losing residents to other states, and not replenishing them with inbound migrants, other than illegal aliens.

The ten best ranked states in the index have significantly lower personal income tax rates than the index’s ten worst ranked states:

2025 U-Haul Growth States (2024 rankings in parentheses)

“U-Haul customers arriving in Texas accounted for 50.7% of all one-way traffic in and out of the state last year (49.3% leaving). Compared to 2024, customers coming to Texas rose 3% YOY while departures rose just 1% YOY.

Texas also ranked first on the U-Haul Growth Index from 2016-18 and 2021-23.

Florida, meanwhile, saw arrivals account for 50.6% of all one-way traffic in and out of the state last year (49.4% leaving) to climb two spots. Compared to 2024, customers coming to Florida rose 2% YOY while departures rose 1% YOY.

The Sunshine State has never ranked below fourth since U-Haul started ranking growth states in 2015.”

Americans for Tax Reform continues:

The ten best ranked states in the index have significantly lower personal income tax rates than the index’s ten worst ranked states:

3.5 percent: Average top state personal income tax rate of the 10 best ranked states.

7.2 percent: Average top state personal income tax rate of the 10 worst ranked states.

As a group, the 10 worst ranked states impose a top personal income tax rate more than twice as high as the 10 best ranked states.

Now let’s look at the top and bottom five, where the tax contrast is even starker:

2.0 percent: Average top state personal income tax rate of the five best ranked states.

9.8 percent: Average top state personal income tax rate of the five worst ranked states.

As a group, the five worst ranked states impose a top personal income tax rate nearly five times as high as the five best ranked states.

This is just more evidence that Socialism always fails, as California’s governor is proving daily.