Coming in a close second to New York in the tax department is Connecticut. State residents pay 12.6% in taxes from their income. Around 57% of moves were outbound from this state with people reporting they were relocating for job and retirement reasons. It’s been shown that many of the people leaving this state are on the wealthier end. Perhaps they’ve had enough of shelling out big bucks in taxes. Connecticut’s job growth is minimal and the state is facing a huge budget deficit. The cost of living isn’t cheap either – it’s well above the national average. If you can afford it, however, Connecticut is a lovely place to live. Rich in American heritage and some of the most gorgeous coastal areas on the eastern seaboard, Connecticut is hard to resist despite it being a wildly expensive place to live.