U-Haul Data Shows the California Exodus Isn’t Slowing; and Texas and Florida Are Cashing In Again
Groundhog Day really has come early for California. U-Haul’s newly released 2025 Growth Index confirms a trend that has now become routine: Americans continue to leave high-tax states in large numbers, while low- and no-income-tax states absorb the gains. For the sixth consecutive year, California ranks dead last, while Texas and Florida sit near the top once again.
California Finishes Last; Again, for the Sixth Straight Year
California’s 50th-place ranking marks its sixth year in a row at the bottom of the U-Haul Growth Index. The state recorded the largest net loss of one-way U-Haul customers in 2025, reinforcing a long-running pattern of residents leaving and relatively few replacing them through domestic migration.
Texas Reclaims the No. 1 Spot as America’s Top Growth State
Texas surged back to first place in the index, reclaiming the title for the seventh time in the past decade. More than half of all one-way U-Haul traffic involving Texas represented inbound moves, with arrivals growing faster than departures year over year.
Florida Climbs to No. 2 and Keeps Its Long Winning Streak
Florida ranked second overall, continuing a remarkable run that has never seen the state fall below fourth since U-Haul began tracking migration in 2015. Inbound moves increased again in 2025, underscoring Florida’s appeal to retirees, workers, and families alike.
Low-Tax States Dominate the Top of the Rankings
Three of the top four destination states; Texas, Florida, and Tennessee, have no personal income tax. On average, the ten best-ranked states impose a top personal income tax rate of just 3.5%, less than half the 7.2% average among the ten worst-ranked states.
The Tax Gap Becomes Stark at the Extremes
The contrast sharpens further when comparing the top and bottom five states. The five best states average a 2.0% top income tax rate, while the five worst average 9.8%. California, with the nation’s highest top personal income tax rate at 13.3%, anchors the bottom of the list.
Billions in Income Follow Residents Out of California
Migration isn’t just about headcounts; it’s also about money. California has already lost hundreds of thousands of residents and tens of billions of dollars in adjusted gross income to states like Texas, a figure that continues to grow as departures outpace arrivals.
Right-to-Work States Outperform Forced-Union States
The index also reveals a labor-policy divide. Nine of the top ten growth states have Right-to-Work laws, while none of the bottom ten states do. States that give workers the option to join unions, rather than mandating participation, appear more attractive to movers.
The Geography of Growth Favors the South
Warm weather and southern geography continue to draw Americans. Eight of the top ten growth states are in the South, including six in the Southeast. In contrast, eight of the bottom ten states are in the Northeast or Midwest, regions that continue to struggle with net out-migration.
Blue-to-Red State Migration Remains a Clear Trend
Political alignment also tracks closely with migration patterns. Seven of the top ten growth states currently have Republican governors, while nine of the bottom ten are led by Democrats. The post-lockdown shift from blue states to red states remains a defining feature of domestic migration.
Oregon’s Surprise Jump Shows Rankings Can Change Quickly
Not every trend is static. Oregon posted the largest year-over-year improvement, jumping from 34th to 11th. Other notable risers include Mississippi, Colorado, Nevada, and New Mexico, proving that policy and perception shifts can still move the needle.
What the U-Haul Growth Index Really Measures
The U-Haul Growth Index ranks states by net gains or losses of customers who rent one-way trucks, trailers, or U-Box containers and drop them off in another state. Compiled from more than 2.5 million annual transactions, it offers a real-world snapshot of where Americans are choosing to live.
A Pattern That Shows No Sign of Reversing
For now, the message from U-Haul’s data is clear: Americans continue to vote with their feet. Low taxes, lighter regulation, and job opportunities are pulling people south and west, while high-tax states like California struggle to stem the outflow; a trend that, six years running, shows no sign of slowing.
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Forgotten IRS Retirement Rule Is Costing Americans $1.7 Billion a Year and It’s Still Catching Retirees Off Guard
Missing a required minimum distribution (RMD) might sound like a minor paperwork error. But new research from Vanguard shows it’s anything but small: investors who failed to take required withdrawals in 2024 triggered an estimated $1.7 billion in IRS penalties, with the biggest mistakes concentrated among people with the smallest retirement accounts. Here’s what the data reveals; and what retirees can do to avoid an expensive oversight.
Trump’s ‘Big Beautiful Bill’ Just Changed Health Savings Accounts; What Millions Can Now Claim
The Trump administration has rolled out new details on Health Savings Accounts (HSAs) following the passage of the so-called “Big Beautiful Bill,” expanding who can use these powerful tax-advantaged savings tools. The changes could allow millions more Americans to lower their taxable income, earn interest on medical savings, and keep unused funds year after year.
Trump’s ‘Big Beautiful Bill’ Just Changed Health Savings Accounts; What Millions Can Now Claim
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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