Massachusetts Millionaire Count Jumps 35% After New Tax Law

The number of super-wealthy Massachusetts residents grew significantly. Within two years, 688 more people hit the $50 million mark, bringing the total to 2,642 ultra-rich residents - even after the state added its new tax on high earnings.

Even more impressive: the state's millionaire population grew from 441,610 to 612,109 people. Their total wealth increased by $600 billion, reaching a massive $2.2 trillion in 2024.

Those who claimed that adding a 4% tax on million-dollar incomes would drive the wealthy away were wrong. The tax brought in $2.46 billion in its first year, helping fund important school and transportation improvements.

"This is further evidence that multi-millionaires are not fleeing the state in response to the new tax – they are staying here, paying more in taxes, and enjoying the stronger transportation and public education systems that Fair Share dollars are funding," said Shanique Rodriguez to WCVB.

Massachusetts remains one of America's wealthiest states. The average resident's net worth is $798,064 - far above the median household income of $101,341.

This growth in wealth is part of a larger trend. Since 2010, the wealth held by millionaires in Massachusetts and three nearby states has tripled.

Omar Ocampo, Institute for Policy Studies researcher, dismissed concerns about wealthy people leaving: "Research has demonstrated that million-dollar earners and high net worth individuals tend to exhibit lower rates of migration compared to the general public," said Ocampo.

But while the wealthy stick around, Jonathan Cohn notes a concerning pattern - high costs are pushing younger workers out. Rising home prices are forcing middle-income families to leave.

Analysts say taxing wealth over $50 million at just 1% could generate $3.7 billion yearly. Higher rates could bring in $11 billion.

As private wealth keeps growing, officials look for ways to use it for public benefit. Current tax money helps improve education and transportation systems.