As with numerous reports issued in recent years, a new analysis shows that Oklahoma is attracting more movers than the vast majority of states nationwide.

But data in that same report also suggest that Oklahoma’s income tax remains a deterrent that is driving higher-income individuals to other states that do not tax work or investment.

The new report by StorageCafe, an online storage-space marketplace, analyzed 2023 U.S. Census Bureau data to track net migration, identifying which states have had more new arrivals than departures.

Oklahoma was ranked tenth overall in the raw net number of new arrivals (25,058 in 2023). When ranked on net migration per capita, Oklahoma rose to eighth place nationally.

“Oklahoma secures its spot in the top 10 states for net migration, welcoming over 25,000 new residents in 2023,” the StorageCafe report stated. “Millennials are the best-represented generation among newcomers, accounting for 27% of the influx. The state’s affordability plays a significant role in attracting these residents, with 36% managing to purchase homes during their first year in Oklahoma.”

However, some data in the report indicate that Oklahoma’s income tax, which is among the highest in the region, is prompting higher-income individuals to leave the state even as Oklahoma attracts many middle-class families.

Three of the nine states that drew more net migration than Oklahoma have no tax on income: Texas, Florida, and Tennessee. Texas and Florida ranked first and second for net migration, respectively.

Another four states that outranked Oklahoma on the net-migration ranking also have lower income-tax rates than Oklahoma, including North Carolina, Arizona, Indiana, and Colorado.

Oklahoma’s current 4.75 percent personal income tax rate is among the highest in the region.

Texas has no personal income tax while Colorado imposes a 4.4 percent rate most years and recently provided a temporary reduction to 4.25 percent. Officials in Arkansas have cut their rate to 3.9 percent. The top rate in Missouri fell to 4.7 percent in January, leapfrogging Oklahoma. Louisiana has cut its income-tax rate to 3 percent and has a “trigger” law in place to further cut the rate as revenue increases in future years.

Among bordering states, Kansas and New Mexico have higher personal income-tax rates than Oklahoma.

In addition to having one of the highest income-tax rates in the region, Oklahoma’s tax is also imposed at a lower income level than what is typical in many states.

Because the income tax is a penalty on work and investment, the tax is known to deter business investment and job creation in a state and can cause individuals with higher incomes to take their money to locales that are less punitive.

Data in the StorageCafe report indicate that is happening in Oklahoma.

On average, Oklahoma’s newcomers had personal income of $46,761 apiece. But the income of individuals moving to no-income-tax states was as much as 43 percent higher, on average.

Those moving to Texas had an average income of $57,133 while those moving to Florida had an income of $66,921. In Tennessee, another no-income-tax state that outranked Oklahoma for net migration, the average income of newcomers was $51,078.

Notably, the StorageCafe report specifically noted that about 30,000 residents from Oklahoma and Louisiana moved to Texas in 2023. The report said those moves “are largely driven by better economic opportunities.”

Lawmakers recently advanced legislation to make Oklahoma more economically competitive by putting the state’s personal income tax on a gradual path to full repeal.

House Bill 1539, by state Rep. Mark Lepak, R-Claremore, would cut the state’s personal income-tax rate by a quarter point each time that net state revenue increases by at least $300 million.