Ever wondered where American workers take home the most money, once inflation and the cost of living has been taken into account? The reality is quite an eye-opener. Several supposedly high-income states actually leave workers out of pocket due to steep living costs, and more moderate wages can go a lot farther in other states. So how do your earnings compare to your home state's average – and in which other states could you expect to take home more?

Read on for the typical person's income (in spending power terms) for every US state, based on data collated by the Bureau of Economic Analysis for 2021 and in constant 2012 dollars.

The most recent data, for 2021, is in constant 2012 dollars, and shows that Mississippi has America's lowest real per capita income at $55,477. However, that's more than people actually made with the nominal per capita income at $45,881. 

Mississippi is the cheapest state to live in, which means incomes, while very low — it has the country's highest poverty rate at 19% — go a bit further. 

Economically depressed West Virginia also suffers from a lack of well-paid jobs, and has been ranked the third-worst state for employment opportunities by U.S. News.

West Virginia also has the dubious honor of being the "least educated US state" according to research shared by finance firm WalletHub, and has the country's second-highest percentage (17%) of welfare recipients.

Hawaii is America's most expensive state to live in, and the obscenely high cost of everything from housing to groceries shrinks people's incomes in a major way. The real per capita figure is almost 25% lower than the nominal per capita income, which sits at $60,947.

Be that as it may, quality of life is highly rated and income inequality is low. Hawaii also boasts a longer life expectancy than any other US state, at 80 years.

People in New Mexico are almost as hard done by, with a real per capita income of just $48,544 and the country's third-highest poverty rate.

The state has one of the lowest rates of workforce participation across the US, and even with a new minimum wage of $11.50, employers are still struggling to fill low-paying jobs in the service sector. Not so surprisingly, it's the state with the highest percentage of welfare recipients at 21%.

Unfortunately, in low-wage South Carolina a cost of living higher than you'd probably expect eats into people's earnings. Utilities, food and other goods all cost more here compared to the national average.

And along with lower incomes, the state is in the top 10 for higher poverty rates. 

 

Living costs in Alabama may be among the lowest in the country but they do little to offset the rock-bottom average income, which in real terms amounts to only $48,984.

Despite the state's cheap housing, healthcare, transportation and other costs, around 15% of the population is living below the breadline.

Arkansas is in a similar position. At 15.5%, its poverty rate is about the same as Alabama's and therefore among the highest in America.

Like the majority of other Southern states, living costs are low. However, this doesn't do much to make up for the fact that the typical income is well below the national average.

Idaho's major industries include agriculture – the state produces nearly one-third of all America's potatoes – manufacturing and tourism, none of which offer a particularly high average salary.

This concentration of low-income blue collar jobs is reflected in Idaho's real per capita income, which sits at just $49,501.

Arizonans get a pretty raw deal. At $55,487 the state's nominal per capita income is already on the modest side. However, its real per capita figure is quite a bit lower, at $49,766.

The culprit is, of course, Arizona's relatively punishing cost of living, with housing, groceries and other essentials all more expensive than the national average.

There's a lot less a disparity between real and nominal income per capita in Kentucky, where the very affordable cost of living helps lower rates of pay go a bit further.

So while the nominal income in Arizona is higher, the real income is actually higher here in Kentucky.

And the cost of living is even lower in Georgia, which is the among the top five-cheapest states to live in across the US, according to Forbes.

People in the state pay much less than the national average for housing, groceries, utilities and more. However, with both real and nominal incomes well below the national averages, quite a high percent do live below the poverty line compared to other states. 

Utah boasts one of America's lowest unemployment and poverty rates. It also has a lower than average percentage of welfare recipients, and is ranked second in the nation for job opportunities by U.S. News. 

Yet despite all of these glowing achievements, Utah residents' real income per capita is still surprisingly low, which must come down to the state's cost of living.

Nominal income in Louisiana is among the lowest in the US, with households earning less than those in both Utah and Georgia.

However, a more affordable cost of living means real per capita income stands at a $51,528, and therefore the state's lower wages go a bit further for residents than they would elsewhere.

Oklahoma is one of America's cheapest states when it comes to housing and other expenses. Its low cost of living makes it one of the most affordable states to live in across numerous rankings.

The state's nominal income is actually even lower than that of Louisiana, so residents have even more spending power than those on similar incomes elsewhere. 

Unfortunately, that's not the case in Oregon, one of the least affordable US states to live in. Prices are sky-high, with residents paying through the nose for just about everything apart from utilities, which are markedly cheaper than the national average.

Needless to say, the nominal per capita income of $61,59 is pummeled by these stiff living costs, resulting in a lower figure in real terms.

In North Carolina, residents may make less money than the national average, but the affordable lifestyle here means they get more bang for their buck compared similar earners in other states. 

That said, the real income per capita is still on the lower end and the state's poverty rate is similar to neighboring state Georgia at around 13%.

Michigan has struggled to revitalize its job market following the decline of its manufacturing roots.

Despite regeneration efforts, areas like Detroit remain seriously deprived – in fact, the city has the highest percentage (42.3%) of low-income residents in the whole of the US. And not surprisingly, it has a higher poverty rate, hovering at 30%.

Combined, this drags down Michigan's real average income, which is low in spite of its economical living costs.

In Missouri, nominal wages are actually lower, compared to those in both Michigan and North Carolina. However, its low cost of living works means residents get more for their money living here than they would elsewhere.

Housing is notably affordable in Missouri but other essentials are also lower in cost than the national average.

Nominal per capita income is quite high in Maine. Despite this, the figure in real terms is still lower than the national median.

The state's excessive living costs are to blame, with its housing and healthcare both more expensive than the US average. 

Texas is home to a multitude of well-paying industries including oil and gas, healthcare and finance. Other pluses of the state include no income tax and its refreshingly affordable living costs.

However, considering 40% of the state makes less than $15 an hour, it's not surprising the state's real per capita income is lower than the national average. 

The Rust Belt state of Indiana has never fully recovered from losing its well-paid and highly skilled manufacturing jobs, with thousands of workers let go in favor of machines over the last few decades.

Wages are generally low, although the poverty rate has been steadily declining since 2013. It comes as little surprise, therefore, that the real per capita income is lower than the national average, despite the state's affordable cost of living.

Living costs in Delaware are anything but economical, with housing, groceries, healthcare and other essentials all priced in excess of the national median.

The typical job in the state might look reasonably paid on paper, but once property payments, food, medical bills and so on are all factored in, the average income becomes relatively meager in real terms.

The disparity between the haves and have-nots is wide in Florida, which has its fair share of both deprived areas and wealthy enclaves. In fact, the average nominal income at $62,270 is just shy of the national average.

That said, when all the figures are tallied up, real per capita income, which is tempered by the state's above-average cost of living, is nowhere near the national average.

The cost of living is low in Ohio, but unfortunately, not low enough to offset the state's smaller incomes. And a higher unemployment rate means there's also a dearth of job opportunities for many in the state. 

With relatively fewer high-salary roles available, the real per capita income stalls out at $53,367.

Though Montana boasts a low unemployment rate, and few residents relying on welfare, the typical nominal income runs below the national average.

Lacking major industries, the bulk of its jobs are in the service sector, along with agriculture and health care, none of which pay particularly well. And unfortunately housing costs are a bit higher, meaning real pay is actually lower.

Low pay is a problem in Tennessee too. It's actually the state with the highest percentage of minimum wage workers, who are paid $7.25 per hour, the federal limit.

With a nominal income very close to Montana's, although actually a tiny bit lower, it just goes to show what a difference an affordable cost of living can make when it comes to real income. 

Vermont's key industries, which include tourism, agriculture and forestry, aren't renowned for offering a plethora of highly paid opportunities. However, wages are more generous in these sectors than they are in less affluent parts of the country, particularly to the south.

These higher wages are, however, minimized by the state's pricey cost of living: overall, its real per capita income works out below the national average.

In Alaska, nominal incomes are definitely higher than average, with people typically earning around $65,813 per year.

However, living costs are exorbitant! In fact, on average Alaskan incomes took an $11,000 hit when looking real incomes for 2021. This means Americans in states with similar nominal average incomes, specifically North Dakota and Minnesota, get more for their money. 

While not as steep as Alaska's, the average cost of living is still rather higher in Nevada, with housing and transportation costs creating the biggest drain on people's finances.

This erodes the nominal per capita income, which is pointedly lower in real terms. Another factor impacting the average income for the state is its exceptionally high rate of unemployment, which has been the country's highest among all 50 states.

It's a mixed picture in Rhode Island. The state's economy is fueled by high-paying industries like financial services, but low-wage sectors such as retail are also prominent.

Factor in living costs, which place it among the top 10 least affordable states, and the real per capita income comes in at $54,707.

It's the opposite in Iowa – only a handful of other states boast lower living costs. This means Iowa's real per capita income clocks in just slightly less than national average even though its nominal income is no where near the national average. 

The midwestern has an abundance of work – just not the kind that pays a bumper wage. High-salaried positions are comparatively uncommon but fortunately, the cost of living is low.

With a minimum wage tied to the federal mandate of $7.25 per hour, it makes sense that Wisconsin has a lower nominal per capita income. 

However, its real per capita income in is basically bang on the national average thanks to Wisconsin's more affordable living costs.  

The nominal income per capita is also low in Kansas but, happily enough, the typical resident has less in the way of financial pressures.

Housing, groceries, healthcare and other essentials are a great deal cheaper in the state, which boasts one of America's most affordable cost of living scores. In fact, it's the second cheapest state to live in, behind Mississippi.

Unfortunately for commonwealth residents, who bring home nearly the same real income as those in Kansas, the living costs are anything but cheap here.  

Virginia is more expensive, particularly for housing. On the plus side, jobs generally offer good salaries thanks to its proximity to Washington, D.C., and a variety of lucrative industries, including corporate services and IT.

It's a similar situation for neighboring state Maryland, where incomes are among the highest in the country. Per capita, it ranks number two for millionaire households. 

However, it also ranks high when it comes to cost of living, which does take a bite from these hefty salaries. In real income terms, Maryland doesn't even make the top 10.

The economy of Illinois is propped up by powerhouse city Chicago, which is one of the reasons why the average income is so high in the state.

The real per capita figure is pushed even higher by relatively cheap living costs, with prices for housing, groceries and other essentials all sitting beneath the national average.

Pennsylvania's economy is also healthy, with a bunch of high-paying industries – including life sciences and hi-tech manufacturing – helping to keep wages buoyant.

The real per capita income of $57,861 would actually be higher if it weren't for the cost of living though, which are on the higher end in the northeast compared to other parts of the US. 

The nominal per capita income is a lot lower in Nebraska. But in real terms, residents bringing home a typical income of around $55,891 means the state ranks comfortably above the national average.

This is due to Nebraska's more reasonable cost of living, especially when it comes to big ticket expenses like housing. 

Minnesota has a remarkably diverse economy. Key sectors include advanced manufacturing, life sciences and renewable energy, and nominal pay is good at $66,280.

However, even though it’s located in the more affordable in Midwest, living costs do take a bite into people's incomes.

Incomes are much higher in Washington, but the steep cost of living means its real per capita income is pretty close to that of Minnesota's.

However, the state government continues to be a leader when it comes to increasing its minimum wage: At $15.74 per hour, it's the highest for a state in the US.

California's crazy cost of living swallows up huge chunks of people's income. With wages flying high, however, the real per capita income is comfortably in excess of the national average.

Don't be fooled though: not everything glistens in the Golden State. California has one of America's highest unemployment rates as well as one of the highest levels of income inequality. 

With nominal average income around $70,000, it's hardly surprising Colorado is ranked number one for career opportunities by U.S. News. Its job growth and labor participation rates are both deemed excellent.

And fortunately for residents, its cost of living isn't nearly as high as other states with similar incomes, putting it in the top 10 for real per capita income.

Income inequality is extreme in the Empire State. While high-paying jobs are concentrated in New York City, the Big Apple has legions of low-paid workers too, with pay much lower across all levels upstate.

Once the numbers are crunched, the average nominal income is $76,837. However, the state's outrageously expensive living costs mean the figure bottoms out at $60,870 in real terms. This is the largest loss of all 50 states.

The difference between nominal and real per capita income in New Jersey is a close second at more than $15,000. And is also mainly due to the state's exceedingly high living costs.

On the upside, the state's poverty rate is one of the lowest in America, and its minimum wage is among the highest in the nation and will increase to $15 per hour in 2024.

North Dakota's nominal per capita income is about $12,500 less than that of New Jersey, yet the real per capita income is actually higher. 

Living costs are around the average mark when compared to the nation as a whole, and significantly less compared to New Jersey. In short, workers in North Dakota have it pretty good, all things considered.

The gap between the rich and poor is a lot smaller in New Hampshire, which has America's lowest poverty rate, and a healthy nominal per capita income at $73,200.

Though jobs pay generously on the whole, the above-average living costs are still taking their cut, more than $11,000 per year on average.

Living costs are more affordable in South Dakota, with average incomes slightly above the national average, too. In fact, it's home to a surprisingly large number of well-paying jobs across lucrative fields including finance and insurance. 

All of which translates into an average real per capita income substantially above average at $58,414.

The envy of other American states, Wyoming is the second-best state for income equality and has one of the lowest percentages of welfare recipients at just 5%.

Wyoming also possesses that elusive combination of both high wages and affordable living costs. The latter comes in at below the national average, with categories including housing and utilities relatively cheap.

Not helped by its extortionate living costs, poverty certainly still exists in Massachusetts. Despite this, the state is still incredibly affluent by and large.

Jobs in its numerous industries pay handsomely and U.S. News ranks it as the third-best state for employment opportunities. It's also the most educated state and has one of the highest minimum wages in the country.

Neighboring Connecticut wows as the state with America's highest real per capita income.

Pay rates are generally pretty generous and while living costs are huge, the fat paychecks more than make up for it. But not everyone is making the big bucks. Despite having a $15 per hour minimum wage, the state is still one of the worst for income inequality, with wealthier households having significantly larger incomes than their poorer counterparts.

Now see the minimum wage in every state