Info IEB

Tax Systems Analysis

The Effect of Regional Taxes on the Mobility of Top Income Taxpayers

Info IEB Number 31, May 2019

Within decentralized countries, the tax burden of high-income individuals varies substantially across sub-national jurisdictions due to regional income taxes. Variation of tax rates within countries, where mobility costs might be low, means that taxes may matter when individuals determine where to legally declare their residence. Recent cases reported in the popular press document that “superstar” individuals move across countries to receive a reduced tax treatment.