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States with the Highest Average Income

by Olufisayo
Highest Average Income

Are you curious about the average income of your state? Do you want to know if your state counts in the nation’s richest or poorest states? Below, we’ll give you a list of the states with the highest and lowest average incomes in 2021. We’ll also discuss the factors that impact average income.

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Top Ten States with the Highest Per Capita Income

Per capita income or PCI measures a person’s amount of income in a nation or region. To determine which states have the highest income, we looked at the median PCI of their constituents.

Below is the list of the wealthiest states in the United States for 2021. We also included the median per capita income in the following states.

  1.       District of Columbia ($84,538)
  2.       Connecticut ($79,087)
  3.       Massachusetts ($74,967)
  4.       New York ($71,400)
  5.       New Jersey ($70,979)
  6.       California ($66,661)
  7.       Maryland ($65,683)
  8.       Washington ($64,898)
  9.       New Hampshire ($63,880)
  10.   Wyoming ($63,316)

A few of the wealthiest states have the highest median household income, as well. Many of them are also the nation’s most educated states.

Ten States with the Highest Average Incomes

Now, let’s look at which US states have the highest average income.

  1.       New Jersey ($114,691)
  2.       Connecticut ($113,031)
  3.       Massachusetts ($111,498)
  4.       Maryland ($111,417)
  5.       California ($106,916)
  6.       Hawaii ($103,780)
  7.       New York ($101,945)
  8.       Virginia ($101,746)
  9.       New Hampshire ($99,165)
  10.   Washington ($98,983)

Top Ten States with the Lowest Per Capita Income

Here are the states with the lowest PCI average. Like the top ten highest-income states in the US, we’ll also include the median PCI in the list.

  1.       Mississippi ($39,368)
  2.       West Virginia ($42,336)
  3.       Alabama ($43,880)
  4.       New Mexico ($43,984)
  5.       Kentucky ($44,017)
  6.       Arkansas ($44,845)
  7.       South Carolina ($45,314)
  8.       Idaho ($45,642)
  9.       Arizona ($46,233)
  10.   North Carolina ($47,803)

Like in the previous list, the states above also share some similarities. Several of them have the highest poverty rates. Many in the list also have the lowest education scores.

What Factors Affect a State’s Average Income?

Not everyone has the same opportunities for work. The same is true with the various US states.

As mentioned, some states have a higher rate of education than others. If its constituents have access to education and training, they can make smarter decisions that affect their earnings.

Poverty is another related factor that affects a state’s average income because it dampens the market’s growth. Poor people focus more on short-term survival rather than investing in long-term business ventures. They’ll buy essentials instead of saving money to open a business or get an education, for example.

Other factors that affect a state’s income include:

  •         Infrastructure (functioning roads or sound power system)
  •         Population
  •         The efficiency with which labor and capital get put to use
  •         Skills and attitudes of the labor force
  •         Community safety and security; and more

Conclusion

Knowing how rich or poor the state you live in can help you understand your place in it. If you know you live well but are in one of the poorest states, you’ve got a chance to help others improve, for example. If you didn’t see your state on the list, it’s somewhere between the wealthiest and poorest states.

Photo by Karolina Grabowska from Pexels

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