The median yearly income in the U.S. is approximately $81,000, according to the latest data from the Federal Reserve. However, income inequality remains a pressing issue, with some individuals earning significantly more while others continue to face financial hardship.
To provide deeper insight of how Americans are faring across the country, WalletHub analyzed all 50 states and the District of Columbia based on three key factors: the average annual income of the top 5%, the average income of the bottom 20%, and the median income for all residents.
Chip Lupo, WalletHub Analyst
Main Findings
Income Levels by State
| Overall Rank | State | Total Score | Average Annual Income of Top 5% (Adjusted for COLI) | Median Annual Income (Adjusted for COLI) | Average Annual Income of Bottom 20% (Adjusted for COLI) |
|---|---|---|---|---|---|
| 1 | Virginia | 67.73 | $533,522 | $93,275 | $19,293 |
| 2 | New Jersey | 67.37 | $522,128 | $122,447 | $17,083 |
| 3 | New York | 66.67 | $575,505 | $95,033 | $13,647 |
| 4 | Connecticut | 65.57 | $535,578 | $118,346 | $15,005 |
| 5 | Washington | 63.03 | $499,994 | $109,171 | $18,777 |
| 6 | Utah | 61.62 | $466,144 | $95,101 | $23,531 |
| 7 | Minnesota | 59.49 | $486,764 | $89,434 | $20,616 |
| 8 | Colorado | 59.18 | $483,844 | $102,825 | $19,253 |
| 9 | Illinois | 58.17 | $521,989 | $81,549 | $16,705 |
| 10 | Massachusetts | 56.97 | $486,112 | $133,946 | $14,221 |
| 11 | Texas | 54.21 | $504,383 | $73,718 | $17,461 |
| 12 | California | 54.13 | $473,848 | $129,884 | $14,542 |
| 13 | District of Columbia | 53.00 | $470,987 | $169,153 | $9,768 |
| 14 | Georgia | 52.63 | $504,969 | $69,815 | $16,968 |
| 15 | Maryland | 50.98 | $438,921 | $128,496 | $17,012 |
| 16 | Florida | 49.11 | $492,920 | $72,684 | $16,097 |
| 17 | New Hampshire | 47.45 | $417,276 | $116,255 | $18,973 |
| 18 | Pennsylvania | 44.46 | $464,388 | $77,581 | $16,288 |
| 19 | Missouri | 43.67 | $464,577 | $62,391 | $17,561 |
| 20 | North Carolina | 43.52 | $468,634 | $66,565 | $16,532 |
| 21 | Arizona | 43.40 | $450,383 | $78,746 | $17,190 |
| 22 | Michigan | 43.17 | $460,674 | $64,806 | $17,466 |
| 23 | Idaho | 43.09 | $432,492 | $74,521 | $19,578 |
| 24 | Tennessee | 42.85 | $471,725 | $61,902 | $16,337 |
| 25 | Nebraska | 42.67 | $443,531 | $75,610 | $17,942 |
| 26 | Delaware | 41.71 | $422,916 | $90,873 | $18,056 |
| 27 | Ohio | 40.56 | $455,092 | $64,455 | $16,713 |
| 28 | Kansas | 39.31 | $432,887 | $71,329 | $17,814 |
| 29 | Wisconsin | 38.57 | $418,059 | $75,780 | $18,615 |
| 30 | Iowa | 36.57 | $414,953 | $71,552 | $18,358 |
| 31 | South Dakota | 36.06 | $415,926 | $72,189 | $17,891 |
| 32 | Nevada | 34.61 | $419,998 | $84,612 | $15,203 |
| 33 | Indiana | 33.70 | $415,138 | $66,989 | $17,275 |
| 34 | North Dakota | 32.92 | $405,631 | $81,960 | $16,237 |
| 35 | Montana | 32.44 | $413,616 | $72,701 | $16,110 |
| 36 | South Carolina | 32.41 | $433,153 | $66,038 | $14,588 |
| 37 | Oregon | 31.88 | $396,956 | $95,357 | $15,145 |
| 38 | Hawaii | 31.50 | $352,749 | $146,646 | $14,199 |
| 39 | Wyoming | 30.77 | $396,773 | $78,702 | $16,453 |
| 40 | Oklahoma | 29.45 | $418,392 | $59,284 | $15,438 |
| 41 | Kentucky | 28.57 | $427,286 | $57,716 | $14,105 |
| 42 | Arkansas | 28.05 | $426,569 | $53,166 | $14,420 |
| 43 | Rhode Island | 26.82 | $373,461 | $110,458 | $13,352 |
| 44 | Alaska | 25.99 | $337,921 | $117,767 | $16,183 |
| 45 | Alabama | 24.91 | $412,305 | $57,774 | $13,818 |
| 46 | Vermont | 23.49 | $358,688 | $94,544 | $15,052 |
| 47 | Maine | 20.31 | $358,542 | $83,800 | $14,540 |
| 48 | Louisiana | 19.83 | $405,592 | $58,352 | $11,733 |
| 49 | Mississippi | 16.31 | $391,715 | $48,630 | $12,515 |
| 50 | New Mexico | 14.52 | $371,006 | $62,464 | $12,351 |
| 51 | West Virginia | 11.23 | $357,430 | $55,201 | $12,940 |
In-Depth Look at the Top States
Virginia
Virginia is the state where people have the highest income, when balancing between the median, top 5% and bottom 20% of earners.
The top 5% of earners in the state make an average of $533,522 per year, while the bottom 20% make an average of $19,293. While there is a big gap between these two numbers, the top 5% ranks as the third-highest in the nation, while the bottom 20% ranks fourth. In other words, both the rich and the poor are doing better than their counterparts in other states.
The median annual income in Virginia is $93,275. This ranks as the 17th-highest in the country, so it seems like many people are skewed to either side of the wealth spectrum in the Old Dominion.
New Jersey
New Jersey residents have the second-highest income, when you take into account low, high and median earnings.
The top 5% of New Jersey residents earn an average of $522,128 annually, the fourth-highest number in the country. In addition, the median income in the state is $122,447, which is the sixth-highest.
Unfortunately, people in the bottom 20% of the population are only doing slightly better than average. They earn $17,083 per year, which only ranks as the 19th-highest in the country.
New York
New York is the state where people have the third-highest income, after taking into account the top 5%, bottom 20% and median earnings.
The average annual income of the top 5% of earners in New York is $575,505, the highest in the country. On the other hand, the bottom 20% of earners make an average of $13,647 per year, which ranks 45th out of the 50 states and the District of Columbia. In this study, the high income bracket receives more weight than the low income bracket, which explains why New York’s ranking is so high.
The median annual income in the Empire State is also pretty good, at $95,033, which ranks as the 15th-highest in the nation.
Ask the Experts
In order to provide further insight on the income inequality, WalletHub turned to a panel of experts. Click on the pictures of the experts below to read their bios and see their responses to the following key questions:
- What are the main reasons for income disparities across the U.S.?
- Have recent economic and social struggles increased income inequality?
- What types of programs and initiatives should public policy officials focus on to reduce inequality?
- What impact does income inequality have on society and the economy?
- Why is it important to reduce income disparity?
- What are the most common financial challenges among the people most affected by income inequality?
Ask the Experts
Ph.D., Dean, DeVille School of Business, Associate Professor of Economics – Walsh University
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University Professor Emeritus, Department of Economics - Iowa State University of Science and Technology
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Ph.D., Professor of Finance, University of St. Francis
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Professor & Department Head of Social Science and Policy Studies - Worcester Polytechnic Institute
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Associate Professor, Department of Economics - University of St. Thomas
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Associate Professor, Public Policy and Leadership and Interim Director, University of Nevada, Las Vegas, School of Social Work
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Methodology
To determine the states where people have the best incomes, WalletHub compared the 50 states and the District of Columbia based on three key metrics measuring income for different segments of the population, adjusted for the cost of living index (COLI). These metrics are listed below, along with their weights.
- Average Annual Income of Top 5% (Adjusted for COLI): Double Weight (~50.00 Points)
- Median Annual Household Income (Adjusted for COLI): Full Weight (~25.00 Points)
- Average Annual Income of Bottom 20% (Adjusted for COLI): Full Weight (~25.00 Points)
Sources: Data used to create this ranking were collected as of May 6, 2025 from the U.S. Census Bureau and Council for Community and Economic Research.
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