What the average household earns in every US state
Who earns the most and least?
Financial analysts are cautiously optimistic about the current state of the US economy. Though rising inflation in 2022 had many nervous about the possibility of another recession, and the tech sector has made deep job cuts, there's still plenty of growth. On top of that, 27 states raised their minimum wages this year, giving the lowest paid workers a much-needed boost.
Read on as we reveal what the typical household now earns in every state using the most recent data from the US Census Bureau.
All dollar values in US dollars.
U.S. Department of Agriculture/Flickr CC
Mississippi: $48,716
The typical household in Mississippi has an annual income of $48,716, which is the lowest in America.
The state's leading industry is agriculture, which accounts for at least 17% of jobs and is notorious for offering workers low pay. Little more than 20% of households in the state have incomes that are $100,000 or more.
Dmitry Kalinovsky/Shutterstock
West Virginia: $51,248
West Virginia has the second lowest median household income at $51,248. This hasn't gone unnoticed by state lawmakers, but unfortunately they can't agree on a solution to improve take-home pay. The republican governor wants to slash personal income tax by 50% and is facing opposition from state democrats who are arguing for ending the tax altogether for households making under $80,000.
Around 17% of the state lives below the poverty line, and the unemployment rate has been slowly rising over the last 12 months, up to 4%.
Christian Lagerek/Shutterstock
Louisiana: $52,087
While the majority of people in Louisiana work in lower-paid jobs, those in the state's lucrative energy industry have always been paid well.
Unfortunately, these juicy jobs in the oil and gas sectors have been in decline since around 2014, and the pandemic resulted in another 7,500 layoffs. This is reflected in the state's median household income, which is among the lowest in the nation.
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Arkansas: $52,528
Making only just slightly more than those in neighboring Louisiana, the average home in Arkansas has a yearly income of just $52,528.
Around one-third of households have incomes that are less than $30,000, although the state did raise its minimum wage to $11 per hour in January 2021. It had been more than a decade since workers on the lowest wages saw an increase, from the $6.25 set in 2008.
Alabama: $53,913
Like many states in the Deep South, the average household income in Alabama is significantly lower than the national average of $69,717.
Only 26% of Alabama's population is college-educated and around 16% are living in poverty. The largest employers in the state include the military and healthcare and education providers.
New Mexico: $53,992
With a difference of only $79, households in New Mexico are making around the same as those in Alabama. While the southwestern state does have higher poverty levels, a minimum wage increase from $11.50 an hour to $12.00 came into effect as of January 1, 2023, and the unemployment rate is at an all time low.
State and federal governments are the largest employers here, with Walmart ranked as the largest private employer. However, much of the recent job growth has been attributed to the healthcare, mining and logging sectors.
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Kentucky: $55,573
A glut of unskilled, low-paid jobs has taken its toll on wages in Kentucky, where households earn an average of just $55,573 a year.
The state's hourly minimum wage is $7.25, which is the lowest threshold set by the federal government. This works out to around $15,000 per year for full-time hours – and 13% of households here don't even make that much.
Oklahoma: $55,826
Also below the nationwide average is Oklahoma, where the typical annual household income is $55,826.
Teachers are particularly badly paid, with salaries ranging from $36,600 to $54,935 depending on their years of experience and post-graduate attainment. In fact, an increasing number of educators have been forced to leave either the state or the profession entirely to survive. Staffing shortages have now reached crisis levels and the state government is considering a bill that would give teachers a $2,000 pay raise every three years, for nine years.
South Carolina: $59,318
South Carolina has a buoyant aerospace industry, which employs as many as 136,000 people. There are also several major auto plants, with businesses such as BMW and Honda accounting for another 75,000 manufacturing jobs in the state.
Despite this, South Carolina's typical annual household income is still more than $10,000 below the national average.
Tennessee: $59,695
Many jobs in Tennessee are in the agriculture and retail sectors, which are typically on the poorer-paid end of the employment spectrum.
As such, the typical annual household income of just $59,695 puts it in the top 10 of the lowest in the country, and is also around $10,000 less than the national average of $69,717.
Missouri: $61,847
Households in Missouri typically earn $61,847 a year, which is well under the national average. Although the state counts aerospace and food processing among its top industries, many people are employed in retail, which has more than its fair share of low-paid positions.
New tax cuts signed into law by the governor in October 2022 eliminate income tax for individuals making less than $13,000 per year and $26,000 for couples, among other reductions for higher-earning Missouri households. Critics of the tax cuts point out that the lowest 20% of income earners will only see a savings of $3 a year.
Courtesy Honda/Economic Development Partnership of North Carolina
North Carolina: $61,972
Like its southern neighbor, aerospace and defense are important industries for employment in North Carolina. The state claims to have the largest manufacturing workforce in the Southeast, with more than 460,000 employees. However, households are bringing home significantly less in their paychecks than the national average.
Dmitry Kalinovsky/Shutterstock
Ohio: $62,262
Many of the well-paid manufacturing jobs that Ohio used to boast have been replaced by lower-paid service industry roles.
As a result, the typical annual household income in the state is lower than the national average. It's not all bad news, however. Voters approved a measure in 2016 that requires the state's minimum wage to increase by the rate of inflation on January 1 of each year. From $9.30 set in January 2022, it added another $0.80 in 2023 to $10.10.
Indiana: $62,743
At $62,743, median incomes are also below the national average in neighboring Indiana.
While the state does have strong automotive and life sciences industries, more than half of workers are in low-paid jobs. And while healthcare is also a significant source of employment, even those jobs tend to pay less compared similar roles in other states.
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Florida: $63,062
The typical Florida household has an annual income that sits below the national average, while also facing increasing house prices.
Tourism is a significant part of the state's economy, which, as well as being dominated by unskilled, low-paid jobs, took a serious hit during the pandemic. Wages will improve over the next few years for the lowest paid workers thanks to a measure approved by voters in November 2020. The $11 minimum wage is set to increase to $12 in September 2023, and will continue to gradually increase to $15 per hour by 2026.
Federal Highway Administration/Flickr CC
Montana: $63,249
As you'd expect, outdoor jobs are commonplace in Montana, which is famed for its mountains, canyons and stunning national parks.
Many people in the state work in the construction, agriculture and forestry industries, which don't pay so well. Even more work in the service sector where wages can be even lower and hours often only offered on a part time basis. It too increased its state minimum wage in January 2023, up to $9.95 from $9.20.
Michigan: $63,498
The Rust Belt state has endured years of decline, with formerly buoyant industries such as carmaking a shadow of their former selves.
With only about 30% of Michigan residents holding a college education or higher, the typical household income is around $6,200 less than the national average. Hoping to boost its economy and improve educational opportunities, the governor has set a goal to increase certificate and degree holders across the state to 60% by 2030.
U.S. Department of Agriculture/Flickr CC
Kansas: $64,124
Farming and food processing are among the leading industries in Kansas, and cattle ranching is also big business in the state. This means that household incomes have a tendency to be modest, averaging out at $64,124 a year.
While the minimum wage is only $7.25 per hour, the lowest allowed by federal rules, the poverty rate is slightly lower at 11% compared to the national average of 12%. With a low cost of living compared to other states, Kansans' dollars can go a bit further. And the unemployment rate, at 2.9% as of February 2023, is among the lowest in the country.
Maine: $64,767
The median household income in Maine is below the national average by about $5,000. It's also the lowest of New England.
This figure dips even lower in rural areas, where traditional industries like forestry and paper manufacturing offer lower pay compared to other industries.
Wyoming: $65,204
By revenue, oil and gas extraction and coal mining are the top industries in Wyoming. However, jobs in these fields aren't exactly plentiful and in the case of coal, have been decreasing over the last decade.
With Walmart as the top private employer, the retail sector dominates employment in Wyoming, limiting earning potential. At $65,204 it’s one of very few states that saw a decrease in median household income over the last year by exactly $100 from $65,304.
Iowa: $65,600
A proud agricultural state, Iowa is the nation's top producer of corn, eggs and pork. All those farming jobs don't make for particularly high salaries though and, as a result, the median household income sits at $65,600 per year.
Many Iowans will see a bit more cash in their pockets after the state government enacted a new tax law in March 2022, which kicks in this year. Retirement income is now tax free and income tax will be shift to a flat-rate of 3.9% by 2026.
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South Dakota: $66,143
While finance and insurance services rank high among employment sectors in South Dakota, many people also work in agriculture, forestry, fishing and hunting type roles, which typically don't pay as well. Overall, it has a lower-than-average median income, which is largely in line with that of its neighbors.
Nevada: $66,274
Nevada has a higher number of people working in the legal gambling industry than any other state. Despite the wealth of casino jobs, the average pay isn't great, with the typical household making $66,274 a year.
The Nevada Resort Association estimates that three out of 10 jobs in the state are supported through tourism, which took a major hit during the pandemic. However, most of those job losses have been recovered, and 2022 saw rapid job growth.
Idaho: $66,474
Idaho has also seen its employment levels recover following the pandemic, and lucrative wages can be found in the mining and utility industries. Unfortunately, these make up just a small fraction of Idaho's employment opportunities.
Healthcare, retail and manufacturing are all among the more dominant employment sectors, which means compared to the national average, incomes here are slightly lower.
North Dakota: $66,519
While the fracking boom created plenty of jobs and high wages, a reduced demand during the pandemic resulted in the industry shedding jobs. Even with skyrocketing oil prices in 2022, the Bakken fields didn't see an uptick in demand, with some industry members expecting production to taper off over the next decade.
North Dakota's biggest employers include healthcare providers and Walmart, where wages aren't as lucrative as those on the oilfield, putting median household income at slightly lower levels.
U.S. Department of Agriculture/Flickr CC
Georgia: $66,559
On average, households in Georgia have lower incomes than the national average. With a minimum wage at the federal level of $7.25, it ranks among the lowest wages for workers.
The state estimates that one in seven people work in agriculture-related jobs, many of which are lower paid. Around 14% of the population lives in poverty.
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Nebraska: $66,817
Agriculture and manufacturing jobs are plentiful in Nebraska, which has helped keep unemployment rates down in this midwestern state. However steady these jobs may be, their pay tends to be on the lower side and the typical annual household income in Nebraska is nearly $3,000 below the nationwide average.
The state government is debating a controversial bill that would allow employers to pay teenagers less than the minimum wage, which is steadily being increased each year to $15 per hour by 2026.
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Texas: $66,963
Texas has the highest household income of the southern states. Unfortunately, however, many Texans are still struggling to make ends meet. With the minimum wage set to the federal level of $7.25, as much as 40% of the working population reports making less than $15 per hour.
On the flip side, the state relies heavily on its lucrative oil and gas industry, which is showing signs of recovery and job growth within the sector after losing nearly 60,000 jobs in 2020 alone.
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Wisconsin: $67,125
Wisconsin is known for its dairy products but it's also a leader when it comes to growing snap beans and cranberries. Farm work accounts for 154,000 jobs in the state, with another 282,000 in food processing.
While the typical household brings home an income just below the national average, a growing tech industry helps boost the median figure above other traditionally agricultural states. And many of the state's tech firms are still hiring even though larger Big Tech players have been making layoffs.
Pennsylvania: $68,957
While the state's unemployment rate has returned to prepandemic levels, its top employer is Walmart. With so many people working in lower-paying retail jobs the state's median household income is lower than average.
Recent job growth has taken place in areas like construction and manufacturing, however, the leisure and hospitality sector is doing far more hiring.
Arizona: $69,056
Just shy of the national average of $69,717, Arizona lags behind in terms of income, but wages are increasing in line with inflation. In 2022, minimum wage went from $12.15 to $12.80, for a 65 cent bump. And that increased again on January 1, 2023, by more than a $1 an hour to $13.85.
Some cities are setting their minimums above the mandated state levels. Flagstaff workers are making at least $16.80 per hour in 2023.
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Delaware: $71,091
Healthcare and the financial sector dominate the top private employers in Delaware, so wages don't fare too badly with a typical annual household income of $71,091.
The state's best paying jobs are in healthcare, with Delaware's orthopedic surgeons coming out on top, bringing home an average of $353,920 every year.
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Oregon: $71,562
Oregon has a successful mix of traditional and high-tech industries, playing host to everything from manufacturing and food processing to software publishers.
Prevalent in more rural parts of the state, forestry also has a significant impact on the economy, with related jobs paying decent wages. Then there's Portland, which is by far the state's largest city, and those who call it home see much higher household incomes at a median of $78,476. Collectively, then, it's little surprise that the typical state-wide household income is slightly above the national average.
Illinois: $72,205
Workers in Illinois are making above-average incomes, with the state's overall figure likely propped up by Chicago's suburbs. In Naperville, for example, the average jumps to $135,772, while households in Winnetka earn more than $250,000 each year on average.
Vermont: $72,431
When you think of Vermont, maple syrup production and forestry may spring to mind – but actually the agriculture and forestry sectors don't account for very many of the state's jobs.
Healthcare, education and retail are the top three employers in this part of New England, with registered nurses reporting an income of $75,160 on average and high school teachers taking home $64,920.
Rhode Island: $74,008
Rhode Island residents are certainly better off than the average US citizen, making at least $4,000 more than the national average each year.
Median household incomes average $74,008 in this tiny New England state, home to the headquarters of CVS Health, which is its largest employer. And the wider healthcare field makes up a significant portion of jobs as well.
New York: $74,314
Income inequality is worse in New York than any other state according to a report released in late 2022. The wealthiest New Yorkers own a whopping $6.7 trillion in assets, while an increasing number of people are taking lower-paying service jobs.
While many US states and cities have tied their minimum wage rates to inflation, New York City has not. The city set its minimum wage of $15 in 2018, but with inflation, workers earning these lower hourly wages now have less buying power.
Minnesota: $77,720
Over in the Midwest, the typical household income in Minnesota tops a not too shabby $77,720, which is at least $8,000 more than the national average.
The state is home to many firms in the health and life science technology industries, which have been well-placed to withstand the economic pressures of a pandemic. The state is actually reporting quite a tight job market, with many companies struggling to hire staff – as shown by the all-time low unemployment rate of 1.8% in summer 2022.
Alaska: $77,845
Up in Alaska, median household incomes are higher than the national average, however they've actually dipped, only slightly, in the last year from $77,790, whereas most other states saw growth.
Workers have the benefit of paying no income tax, but the high cost of goods and services in the isolated state can bump up the cost of living significantly.
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Utah: $79,449
The economy in Utah has diversified of late and gone hi-tech, with the state a hub for data centers among other impressive industries. These leading-edge businesses are fueling salary growth, and the median household pulls in a very respectable $79,449 per year.
It's among the states with very low unemployment rates, but it's also one of the fastest growing when it comes to both new jobs as well as people moving into the state to snap up these abundant employment opportunities.
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Virginia: $80,963
Along with its proximity to the nation's capital, Virginia has had one of the highest concentrations of tech workers – and an abundance of firms that pay high salaries to boot and haven't had to shed as many jobs in 2022 as seen on the west coast.
Of course the state hasn't been immune to the recent rounds of tech layoffs. However, east coast employers are hoping former Silicon Valley staffers consider relocating for jobs, including to the D.C. metro area where there are shortage for tech workers in the public sector.
Colorado: $82,254
The typical household in Colorado earns $82,254 a year, much higher than the national average. Poverty levels are on the low side at 9%, and job growth is predicted to remain steady over the next year.
Advanced manufacturing, healthcare and tourism are among the state's most important industries for employment, and all are forecasting for growth in 2023.
Connecticut: $83,771
With a median income of $83,771, annual earnings are quite a lot higher here than in most states. The leisure and hospitality sector has seen the most job growth over the last year, with manufacturing a close second.
Jobs in the financial, professional and business service sectors are plentiful and pay well, putting Connecticut comfortably in the top 10 for median income.
Washington: $84,247
Salaries are also high in Washington, with the average household making $84,247 a year. Major names like Boeing, Amazon and Microsoft are headquartered in the state, along with offices for the likes of like Google, providing generous compensation packages.
However, all of these tech firms have announced cuts to jobs in the Seattle region, and while it's too soon to tell what impact this will have on median income, it'll certainly be felt in the city's downtown, which is struggling to recover from the pandemic.
Kristina D.C. Hoeppner/Flickr CC
Hawaii: $84,857
Hawaii is notorious for its high cost of living, and its real estate prices are also steep. The state's workforce may clear higher than average salaries, but any real benefit is swallowed up by painfully big bills.
On top of that, tourism dominates Hawaii's economy and with the pandemic it took a significant hit, and has been slower to recover due to increased restrictions in Asia preventing tourist travel to islands like Oahu.
California: $84,907
Though housing costs dent their incomes, Californians take home higher salaries than the average American.
The state is home to major industries that range from Hollywood to Silicon Valley, and also boasts a strong agricultural center that produces fruit and wine for national and global consumers. Over the last year its job growth has outpaced that of the national average, and unemployment rates have returned to prepandemic-levels.
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New Hampshire: $88,465
Making more than $18,000 per year above the national average, households in New Hampshire can expect to bring home around $88,465 a year. And residents are off the hook when it comes to sales and income tax, which the state doesn't levy.
Along with retail and healthcare, manufacturing is an important source for jobs in the state, while its poverty rate is low at just 7%.
New Jersey: $89,296
Job opportunities in New Jersey are diverse, with healthcare, life sciences and biopharmaceutical companies all recruiting, as well as businesses that focus on IT, advanced manufacturing and financial services.
It's no surprise that its households, which earn $89,296 a year on average, are the third most well-paid in the country.
Massachusetts: $89,645
One of the richest states in New England – not to mention America as a whole. The median household income of $89,645 is nearly $20,000 more than the national average, thanks to Massachusetts' industries offering high-compensation jobs in healthcare and higher education. Even its tech industry has seen fewer layoffs compared to elsewhere in the US.
And workers in lower-paying sectors can count on a higher minimum wage compared to many other states at $15 an hour as of 2023.
Maryland: $90,203
Making approximately $20,500 more than the national average, households in Maryland take home a median annual income of $90,203.
However, this prosperity isn't shared across the whole state. Baltimore has a 20% poverty rate and its median income is closer to that of New Mexico, which ranks way back at number six on this list.
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