People of all income levels have moved from high tax states to tax free states, such as Florida and Nevada. Often, they’re shocked to see that their overall tax burden is still more than they would like due to much higher sales and property tax rates in those states with no income tax.
As I constantly warn people when planning such a strategy, income from services rendered and property owned inside states with income taxes will still require paying those states their share. This applies to everyone, but is more dramatic with the big money earners, such as professional entertainers and athletes. Rush Limbaugh always mentions how much he has to pay in New York taxes when he broadcasts from his studio there instead of from his main home base in Florida.
There is currently a high profile case with baseball player Derek Jeter that is getting some press.
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Tax Guru - Ker$tetter Letter 