One of the most direct examples of this for the HN demographic is the migration of tech workers from San Francisco to Seattle, which has similar wages but no income taxes and no capital gains taxes. That saves tens of thousands of dollars per year on income tax alone. It isn't a secret that of the two big factors incentivizing people to move to Seattle from San Francisco, one of them is the substantially reduced tax incidence (the other factor being quality of life).

There is definitely a threshold where people start arbitraging tax differences between States, though it doesn't happen often because demographic and lifestyle preference dimensions also factor heavily. The partial de-correlation between tax policy and predominant demographics/lifestyle in recent years, combined with relentless tax increases in some jurisdictions, has created an environment ripe for tax arbitrage.