Wisconsin in particular also is seeing fewer leave, according to Ananth Seshadri, director of the Center for Research on the Wisconsin Economy at the University of Wisconsin-Madison. Between 2012 and 2016, Wisconsin lost about 8,000 taxpayers a year to other states, according to data from the Internal Revenue Service. But, between 2017 and 2020, that number neutralized to about 0 — meaning about the same number of taxpayers moved in as moved out. Seshadri said falling tax rates could be one reason why.
“We still tax our residents more than most of our neighboring states, but the tax structure in Wisconsin is a little more friendly,” he said.