Horizons is now Remote People - Learn More
clock
4 minutes read

U.S. States with the Highest and Lowest Incomes Based on US Median Household Income, According to a New Study

Published on

last update

Content
clock
4 minutes read

Key Takeaways

  1. Massachusetts leads with a median household income of $99,858, driven by tech, finance, healthcare, and top universities.
  2. New Jersey follows at $99,781, benefiting from its financial sector and proximity to New York City.
  3. Maryland ranks third at $98,678, with federal government and defense contracting boosting wages.
  4. New Hampshire places fourth at $96,838, supported by low unemployment and strong manufacturing and tech wages.
  5. Mississippi and West Virginia rank lowest in median household income, affected by high poverty rates and a declining workforce.
  6. California’s high household incomes are overshadowed by the steep cost of living, making it a mixed bag for residents.
  7. The gap between states with the highest and lowest incomes reflects broader economic disparities across the U.S.

A new study has revealed the stark differences in household incomes from state to state. From the tech hubs of Massachusetts to the more economically challenged regions in the South, this data gives us a deeper look at where Americans are earning the most and the least.

The study, conducted by RemotePeople, used data from public U.S. sources, analyzed median household incomes in each state to identify where earnings are highest and lowest.

1

Massachusetts

Topping the list is Massachusetts, with a median household income of $99,858. The state’s success is fueled by the thriving tech, finance, and healthcare industries in the Boston metropolitan region, as well as the concentration of prestigious universities and research institutions. It’s no wonder this state’s residents are reaping the rewards.

2

New Jersey

Next up is New Jersey, where the median income comes in just shy of Massachusetts at $99,781. New Jersey’s proximity to New York City, along with its strong pharmaceutical and financial sectors, puts it firmly in the high-income bracket.

3

Maryland

Maryland ranks third with a median household income of $98,678. The state benefits from its proximity to Washington DC and the associated presence of the federal government and defense contracting industries, which continue to offer competitive wages for workers.

4

New Hampshire

New Hampshire is fourth at $96,838, supported by low unemployment and high wages in manufacturing and technology.

5

California

California comes next at $95,521, fueled by Silicon Valley, Hollywood and the entertainment industry, but offset by steep housing costs.

6

Hawaii

Hawaii follows at $95,322. The state’s economy thrives on tourism, government spending, and military expenditure, though residents also have to contend with the nation’s highest housing costs.

7

Washington

Washington state ranks 7th with a median household income of $94,605, supported by the presence of major corporations in technology and retail sectors, such as Microsoft and Amazon. The state’s focus on clean energy and aerospace also contributes to its economic prosperity.

8

Utah

With a median household income of $93,421, Utah benefits from a diversified economy that includes technology, mining, and tourism. The state’s emphasis on education and a young, growing population further bolster its economic standing.

9

Colorado

Colorado’s median household income is $92,911, driven by industries such as aerospace, technology, and agriculture. The state’s natural beauty also supports a robust tourism sector, contributing to overall economic health.

10

Connecticut

Connecticut has a median household income of $91,665. Historically a leader in finance and insurance industries, the state benefits from its proximity to major markets like New York City, though it faces challenges related to economic growth and income inequality

States with the lowest median household income

Mississippi

On the other end of the spectrum, Mississippi ranks last with a median household income of $54,203. While the state boasts a lower cost of living, the absence of high-wage industries and a high poverty rate leave many families struggling to make ends meet.

West Virginia

West Virginia, ranked 49th, follows closely behind with a median income of $55,948. Once a coal-driven economy, West Virginia has faced challenges with a declining workforce and a lack of diverse, high-paying industries. These factors contribute to some of the lowest wages in the country.

Louisiana

Louisiana, with a median household income of $58,229, struggles with poverty and income inequality. While energy and tourism contribute to the state’s economy, these sectors don’t provide the widespread wage growth seen in other regions.

Complete List of U.S. States with the Highest and Lowest Median Household Incomes

Full list of the highest and lowest median household income in each U.S. state:

Highest and Lowest Median Household Income in the U.S.
RankStateMedian Household Income ($)
1Massachusetts99,858
2New Jersey99,781
3Maryland98,678
4New Hampshire96,838
5California95,521
6Hawaii95,322
7Washington94,605
8Utah93,421
9Colorado92,911
10Connecticut91,665
11Virginia89,931
12Alaska86,631
13Minnesota85,086
14Rhode Island84,972
15New York82,095
16Delaware81,361
17Vermont81,211
18Illinois80,306
19Oregon80,160
20Arizona77,315
21North Dakota76,525
22Nevada76,364
23Texas75,780
24Idaho74,942
25Georgia74,632
26Wisconsin74,631
27Nebraska74,590
28Pennsylvania73,824
29Maine73,733
30Florida73,311
31Wyoming72,415
32South Dakota71,810
33Iowa71,433
34Montana70,804
35North Carolina70,804
36Kansas70,333
37Indiana69,477
38Michigan69,183
39Missouri68,545
40South Carolina67,804
41Ohio67,769
42Tennessee67,631
43New Mexico62,268
44Alabama62,212
45Oklahoma62,138
46Kentucky61,118
47Arkansas58,700
48Louisiana58,229
49West Virginia55,948
50Mississippi54,203
METHODOLOGY: The study analyzed public data on median household income across all states, including averages for families, married couple households, and nonfamily households. The states were then ranked from highest to lowest based on median household income.
SOURCE: U.S. Census Bureau

Hire Globally. Stay Compliant.

Switching from another EOR? We handle the migration for free.

Similar articles