Tax flight refers to businesses or residents relocating from higher-tax jurisdictions to lower-tax alternatives, reducing the tax base of origin communities. Concerns about tax flight arise when municipalities consider tax increases or when comparing taxes to neighbouring communities. Business tax flight is particularly concerning as commercial and industrial assessment often represents a disproportionate share of tax revenue. However, tax flight's actual extent is debated—many location decisions involve factors beyond taxes including labour markets, supply chains, infrastructure, and quality of life. Excessive tax flight concerns can discourage appropriate taxation while understating residents' and businesses' willingness to pay for quality services and community attributes. Evidence on tax flight's magnitude varies by context.