The income of citizens and the revenue of the local state government are used to determine which states are the richest. To identify the wealthy states in the United States, we’ll look at each state’s median household income and GDP.
In general, educational attainment and median family income are linked. So, I listed 15 richest states in the US according to the median household income for you. Let’s know about it a little bit.
1. Maryland – $86,738
Maryland is the first richest US state on my list to reach a median household income of $84,805. Maryland has a hybrid identity as a result of its size and mid-Atlantic position, with features from both the south and the north. Although the state’s main city, Baltimore, is frequently in the news owing to violence and poverty, Maryland remains one of the wealthiest states in the country.
With a population of 6,006,401 inhabitants, it is ranked number nineteen among the most populous cities in the world. Furthermore, with a poverty rate of only 9.7%, it is the second poorest country in the world. Over 38% of all individuals in Maryland have received a bachelor’s degree or above, boosting their career power.
The state’s large number of government employees provide for some of the highest-paying occupations in the country, contributing to the state’s high median income levels. At 5.2 per cent, the unemployment rate is the twenty-fourth highest in the world.
2. New Jersey – $85,751
The second richest states on my list are New Jersey with a median household income of $82,545. Even though New Jersey isn’t typically thought of as a wealthy state, it is the second richest states in the country, thanks to a few wealthy communities. The Garden State is home to some of America’s richest counties, such as Monmouth and Bergen, where typical family earnings exceed $150,000. With a 5.6 per cent unemployment rate, the state is the ninth poorest in the country, with just 10.8 per cent of the population unemployed.
In New Jersey, higher education is highly regarded, with 37.6% of all people have earned at least a bachelor’s degree. If you want to buy a property in New Jersey, the median price is $322,600, making it one of the most expensive states to live in. Furthermore, the state’s cost of living is 14.5 per cent more than the national average.
New Jersey does well overall, with high real per capita income and state revenue.
3. Massachusetts – $85,843
Massachusetts is one of the wealthiest states in the US, ranking fourth overall. The median family income is $81,215, which is above the national average.
With 6,794,422 residents, Massachusetts has the nation’s fifteenth greatest population density. It has the fourteenth lowest poverty rate of 11.5 per cent and the twenty-fourth lowest unemployment rate of 5 per cent. Several of the country’s most distinguished colleges and universities are located in Massachusetts. With 41.5 per cent of all individuals having earned at least a bachelor’s degree, the state has the highest degree attainment rate in the country.
Despite an expanding income disparity, Boston and its surrounding suburbs remain among the wealthiest in the country for a city of its size. While many inhabitants are relatively wealthy, the Bay State is also home to America’s wealthiest individuals, including billionaires Abigail Johnson, CEO of mutual fund company Fidelity Investments, and Robert Kraft, CEO of Kraft Group and owner of the New England Patriots NFL franchise.
4. Hawaii – $83,102
Hawaii is a secluded island region in the Pacific Ocean that stands out from the crowd. The state’s wealth figures are one-of-a-kind: Hawaii’s median household income is $81,275 which makes it the third richest state in the US, the poverty rate is also low, and government expenditures and revenue per capita are both high.
Hawaii has the tenth smallest population of the fifty states, with just 1,431,603 people officially residing there. The state is a favourite choice for the rich who seek to own luxury houses on the island, and it is by far one of the most beautiful locations to live in the United States. Being a large tourist attraction, the states’ unemployment rate is the sixth lowest at just 3.6 per cent.
This demonstrates that the job economy is healthy and thriving owing to agricultural and tourism attractions. With only 10.6 per cent of the population falling below the national poverty line, Hawaii has the fifth-lowest poverty rate in the country.
Check out this list of US states without income tax.
5. Connecticut – $78,444
Connecticut is the fifth wealthiest state in the United States. Connecticut is the twenty-second smallest state in terms of population, with 3,590,886 residents. The median household income in the State was $78,444 in 2019. In addition, the state did well in all other areas.
The unemployment rate is the eighth highest in the country, at 5.6 per cent, while the poverty rate is the sixth lowest, at 10.5 per cent. The 38.3 per cent of all persons with a bachelor’s degree or above and the much higher family income levels have a link. This figure is about 8% higher than the national average. Connecticut has a median house value of $270,900.
While most people of Connecticut are middle-class, the uber-rich citizens of Fairfield County, which is home to some of the most affluent towns in the country, propel the state to the top.
6. Alaska – $77,640
Alaska has the third-smallest population of any state in the country, with a population of only 738,432 people. Because of its substantial natural resource allocations, it is the country’s sixth-richest state. In addition to mining, forestry, fishing, and agriculture, the state’s oil sector is thriving.
Alaska has the fourth-highest unemployment rate in the US, at 6.5 per cent, but the fifth-lowest poverty rate of the states, at 10.3 per cent. Despite being the sixth richest state, it is projected that about 15% of citizens do not have health insurance, making it the second-highest in these alarming statistics.
Being rich in Alaska helps a lot since, due to its remoteness and the cost of bringing items into the state, it is one of the most costly states in the US in terms of commonly-bought commodities. In comparison to other states, Alaska has a typical household income of 77,640 dollars, indicating that inhabitants make enough money to spend more on necessities.
Alaska is a nation of contrasts: it has some of the worst rates of violent and property crime in the country, but it also has one of the greatest proportions of millionaires in the country, boosting its median family income.
Read this article about the US economic growth by states.
7. New Hampshire – $76,768
New Hampshire has the ninth smallest population in the US, with only 1,330,608 residents. The usual household income is over $16,000 greater than the national median household income of $76,768. The state has the fourth-lowest unemployment rate in the country, at only 3.4 per cent, and it also has the lowest poverty rate in the country, at only 8.2 per cent.
New Hampshire boasts some remarkable numbers when it comes to educational attainment. 35.7 per cent of individuals in the state have achieved at least a bachelor’s degree, with many going on to acquire a master’s degree, while 93.1 per cent of inhabitants having completed high school.
This is due to the fact that the average household income is greater. Many notable educational districts and colleges and universities may be found in New Hampshire.
8. California – $75,235
With a population of 39,144,818 inhabitants, California is the most populous state in the country. In the state, there is a clear difference in wealth distribution. Despite having a high average family income, it has the fourteenth highest poverty rate, at 15.3 per cent. In light of the fact that the unemployment rate in the state is 6.2 per cent, it is the seventh highest in the country.
While the state is home to some of the wealthiest people in the country, it is tough for those who are poor to make ends meet. Home prices are more than twice as high as they are in other parts of the country due to the high salaries.
The average residence is worth $75,235 dollars. Furthermore, due to the difference in the cost of products and services in the state, the cost of living is predicted to be 14.7 per cent higher.
9. Virginia – $74,222
Virginia, which has the eleventh biggest population in the US with 8,382,993 people, is the richest state in the US by the median household worth of $74,222. The average family income is much greater than the national average, owing to the fact that 37 per cent of persons in the state have achieved a bachelor’s degree or above.
It is now one of the six states with the greatest percentage of adults having a college diploma. According to statistics, there are more families in the state who earn at least $200,000 per year and fewer homes who make $10,000 or less per year.
Virginia has a 4.4 per cent unemployment rate, which is the 17th lowest in the US, and an 11.2 per cent poverty rate, which is the 11th lowest. The state’s job economy is reasonably strong. The median property value in the city is $259,700, which is among the highest in the country, but when compared to the average household income, the two are fairly balanced.
10. Washinton – $73,775
With a population of 7,170,351, Washington is the thirteenth most populous state in the country. The median family income is high, at $73,775 per year, yet the state has the fifteenth highest unemployment rate in the country, at 5.7 per cent, and the seventeenth lowest poverty rate in the country, with 12.2 per cent of individuals falling below the poverty line.
The high 34.2% of individuals with at least a bachelor’s degree is responsible for the higher income levels. As a result, the value of homes in the state, which has an average property value of $284,000, is rising.
11. Colorado – $72,331
Colorado, a mountainous state with a population of 5,456,574 people, is the twenty-second most populous state in the US. In recent years, the state’s median household income has increased to $72,331, while the number of households relying on food stamps has decreased. In just two years, the average family income increased by almost two thousand dollars, and just 8.4% of homes now require food stamps.
Colorado has the tenth lowest unemployment rate in the US at 3.9 per cent and the fourteenth lowest poverty rate at 11.5 per cent of the population. The state’s job market has been improving, and the unemployment rate is on the decline, according to the latest figures.
12. Utah – $71,621
With 2,995,919 residents, Utah twelfth richest state in the US. The average family median household income is more than $71,621 which is more than the national average, and the unemployment rate is 3.5 per cent, the country’s sixth-lowest. This is lower than the rest of the country’s figures.
Utah has the eleventh lowest poverty rate in the US, at 11.3 per cent. Utah is fortunate to have the lowest incidence of income disparity in the country due to a combination of low poverty rates and high-income levels. It is an affluent state with a solid employment market for its citizens.
13. Minnesota – $71,306
Minnesota has a population of 5,489,594 people, making it the 21st most populous state in the country. The rich state has a greater median household income of $71,306 than the rest of the country. This is the main reason why it is the country’s thirteenth richest state.
Furthermore, the unemployment rate of 3.7 per cent is the ninth-lowest in the country, while the poverty rate of 10.2 per cent is the fourth lowest in the country. Minnesota has a remarkable 34.7 per cent of inhabitants with a bachelor’s degree or more, which is thought to contribute to the higher income levels.
14. New York – $68,486
With a population of 19,795,791 inhabitants, New York is the fourteenth richest state in the US. At 5.3 per cent, the unemployment rate is the twenty-third highest in the country. New York is recognized for having a relatively high median household income, roughly $68,486.
However, the national average poverty rate is 14.7 per cent, highlighting the wealth gap between the wealthy and the poor. One of the causes for this issue is that the state’s cost of living is greater than in many other states around the country.
When compared to the rest of the country, the cost of goods and services is much higher, by 15.7 per cent. This makes it more difficult for folks in lower-income categories to get by. With a typical house value of $373,075, it’s more difficult to buy a home in the state, requiring many people to pay exorbitant rent, which eats up a large percentage of their salary and leaves little money for other living expenditures.
As a result, New York is the most unequally distributed state in the country. The rising median income levels in New York do not benefit everyone.
15. Delaware – $68,287
The last richest state on our list is the State of Delaware. Delaware has the sixth-lowest population density in the US, with just 945,934 people residing there. At 4.9 per cent, the unemployment rate is the twenty-second lowest in the country.
Delaware residents have a significantly higher median household income is $68,287, but this has driven up the cost of homeownership, with income levels remaining stable for the past few years but home values rising to $240,200, putting it in the higher bracket for homeownership.
The percentage of Delaware residents with a bachelor’s degree or above is 30.9 per cent, which is reflected in the higher median income levels. This is close to the national norm, with a few percentage points above the 30.6 per cent national average. Delaware has the 18th lowest poverty rate in the country, at only 12.4%.
The national median household income is $79,900, which puts all of the locations on this list over the national average. States, on the other hand, are more erratic when it comes to poverty rates. The national three-year average poverty rate is 13.7 per cent, however several of the states on this list have worse rates, while one has a rate that is nearly half that.
The poverty rate in these states is important to note since it shows that these higher-than-average wages aren’t necessarily available to everyone.