The literature has shown that especially wealthy individuals and high income earners such as football superstars, inventors, or high income expats react strongly to differences in top tax rates across and within countries. This project sets out to investigate this behavior of tax avoidance empirically, leveraging a unilateral reduction in the municipal wealth tax rate in the municipality of Bø, Norway. In a second step of analysis this project looks to understand what the real behavioral responses to such a tax differential within a country are. One particular dimension of this is to study, whether individuals who move to the lower tax environment actually do so, or misreport their residency for tax reasons. Such behavior would exacerbate the negative implications of tax competition such as the “race to the bottom”, and cancel out positive ones such as Tiebouts voting by feet.