Texas and Florida Gain Hundreds of Corporate HQs as Firms Flee High-Tax States, Report Shows

A new report from commercial real estate services firm CBRE has quantified a significant shift in America’s corporate landscape, revealing that 725 companies relocated their headquarters between 2018 and 2025. The data indicates a powerful trend of businesses moving from high-tax, high-cost states like California and New York to lower-tax, Republican-led states, with Texas and Florida emerging as the primary beneficiaries.

This large-scale corporate migration reflects a strategic recalculation by business leaders, but the operational realities of such moves are often more complex than they appear on paper.

According to the CBRE analysis, Texas has attracted the largest share of these relocations. The Dallas-Fort Worth metroplex alone drew 111 new corporate headquarters during the seven-year period, more than any other city in the nation. Other Texas hubs also saw major gains, with Austin adding 88 headquarters and Houston gaining 31. This influx has solidified Texas’s reputation as a leading destination for companies seeking a more favorable business climate.

Florida, particularly Miami, has also become a major magnet for corporate moves. The report notes that in the past year alone, six companies relocated their operations to Miami from expensive coastal hubs like Los Angeles, the San Francisco Bay Area, and Boston. Companies cited Florida’s lack of a state income tax, a burgeoning technology sector, and its strategic access to East Coast and international markets as key draws. The city’s expanding startup culture and growing pool of finance and tech talent are making it an increasingly competitive destination.

In our experience, the appeal of a lower tax burden is a powerful motivator, but it's only one piece of a much larger puzzle. Relocating a business involves navigating a new state's regulatory environment, re-establishing supply chains, and managing the financial transition, which can be fraught with unforeseen costs. This is why thorough strategic planning is non-negotiable. For companies contemplating such a significant operational shift, services like business formation are critical to ensure a smooth and legally compliant transition. We help clients manage these complexities from start to finish. To understand the full scope of a multi-state operational strategy, business leaders can consult with the team at C&S Finance Group LLC at csfinancegroup.com.

The trend identified by CBRE is mirrored by recent U.S. Census Bureau data showing a broader migration of residents away from high-tax states. States with some of the highest per-capita state and local tax collections, such as Connecticut ($9,388) and New Jersey ($9,178), have seen population declines. In contrast, states with some of the lowest tax burdens, including Mississippi, Tennessee, and Alabama, have grown. This alignment of corporate and residential migration patterns suggests that affordability and tax policy are becoming decisive factors for both businesses and individuals.

While new economic powerhouses rise, traditional centers of commerce are feeling the impact. California experienced the nation's steepest losses in corporate headquarters during the period studied. The New York City metropolitan area, which includes parts of New Jersey, saw the second-highest number of departures, with nine headquarters leaving for other states between 2024 and 2025. While New York remains the country's largest corporate hub with 114 Fortune 1000 headquarters, the recent moves resulted in a loss of approximately 5,200 jobs from the region, according to the report.

The debate over business-friendly policy has been amplified by high-profile departures. Citadel founder Ken Griffin, who moved his hedge fund from Chicago to Miami in 2022, has become an outspoken critic of tax and public safety policies in cities like Chicago and New York. He has repeatedly warned that anti-business rhetoric and policies targeting high earners could drive more investment and talent away from these legacy financial centers.

This corporate exodus is reshaping the national economic map and carries significant political implications. As businesses and their employees relocate, they shift the tax base and political influence toward their new home states. Ultimately, a successful relocation is less about chasing the lowest tax rate and more about finding the optimal environment for long-term growth, a decision that requires a holistic view of the business and its goals.

Looking ahead, policymakers in states like California and New York face increasing pressure to address the factors driving companies away, potentially leading to legislative battles over tax rates and regulations. The continuation of this trend could further alter the distribution of economic power in the United States and may become a central issue in state and national elections, including the upcoming 2026 midterms.