BOSTON (WWLP) – A new report shows that Massachusetts is losing residents, and therefore tax dollars.

According to a new report, Massachusetts is the only New England state that is losing taxpayers. The report, put out by the Tax Foundation, shows a startling trend for Massachusetts.

The report focused on the state’s outward and inward migration trends and used Internal Revenue Service data and Census data to track taxpayer movement. The data spans between 2019 and early 2020.

In that time frame, Massachusetts lost close to 37,000 taxpayers. The Baystate lost so many taxpayers, the report placed the state as 4th highest in the country, only behind New York, California, and Illinois, significantly larger states. The migration out of Massachusetts accounts for over 20 thousand taxpayer entities and a loss of about $2.5 billion in adjusted gross income.

Paul Craney of Massachusetts Fiscal Alliance stated, “Unless you slow down spending which frankly hasn’t happened in many years, maybe decades, in the State House, the vicious appetite to continue to increase spending will only become worse when more and more taxpayers leave our state.”

The report did state there are many reasons why people chose to leave the state, but it also points towards how states with steeper tax rates as you move up the income ladder, have seen the greatest loss in population. Of the states that experienced the greatest growth, nine of the top ten either do not have individual income taxes on wage and salary income, have a flat income tax, or are moving to a flat income tax.

Of the New England States, Maine and New Hampshire placed in the top ten for taxpayer growth over the same time period.