Between 2020 and 2023, the total number of CFPs in the United States grew to 96,412, an 11.7% increase. During that period, approximately 10,000 financial advisors earned their CFP certifications.
During that same time period, CFP membership in the eight states with no personal income tax (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming), increased by 15.3% to 18,283 certificants.
By contrast, the number of CFPs in California, Hawaii, Massachusetts, Minnesota, New Jersey, New York, Oregon, and Vermont, states with high personal income taxes, increased by just 7% to 26,658.
New York State has had one the lowest percentage increases in CFPs of any state in the country since the start of the pandemic. Still, not all high-tax states have seen the same lackluster numbers.
Oregon, Hawaii, and Vermont, while all having few CFPs in absolute numbers, have experienced above-average growth over the last few years, between 13% and 17%. Minnesota, with a top marginal individual income tax rate of 9.85%, saw only slightly below-average CFP growth at that same time.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
