According to the most recent U.S. Census Data, there is more than a $45,000 swing in median income between the wealthiest and poorest household income states. The top-earning states for 2023 are Massachusetts, New Jersey, Maryland, New Hampshire, California, Hawaii, and Washington.
What about these states’ educational opportunities, cost of living, and industries that help their residents bring home the bacon?
Key Takeaways
4 of 7 wealthiest states are in the northeastern U.S.
Access to high-quality education correlates with higher median income.
States with higher median income also typically have higher cost of living and housing prices.
1. Massachusetts ($99,858)
A rising tide lifts all boats, and the economic prosperity of the Boston area is one example where the metaphor rings true. The Massachusetts economy positively impacts neighboring states like New Hampshire. Massachusetts is also consistently ranked one of the highest-educated states in the country and #1 in education. Additionally, employment opportunities in industries like health care, biotechnology, and financial services bring high earners to the state.
2. New Jersey ($99,781)
New Jersey sits between New York City and Philadelphia, making New Jersey a commuter dream for those wanting to make city money without living in a city. According to the U.S. Census Bureau, New Jersey is the most densely populated state with much of the population living in the suburbs. New Jersey also has several high-earning industries like life sciences, financial services, transportation, and logistics.
3. Maryland ($98,678)
Maryland regularly ranks as one of the wealthiest states. The state neighbors Washington D.C., providing residents with abundant federal jobs and contracting opportunities. Maryland also ranks high in two other key economic indicators: lowest unemployment rate and highest educational attainment levels. The state also boasts miles of ocean coastline, including the Port of Baltimore and the Chesapeake Bay, creating a strong coastal economy.
4. New Hampshire ($96,838)
Approximately 80% of New Hampshire’s residents live and work in their home state in one of the state’s various growing industries. Additionally, New Hampshire’s proximity to Boston, Massachusetts, attracts commuters in high-paying industries to the state.
5. California ($95,521)
California leads U.S. tourism. Additionally, it is a global leader in two high-profile, high-value industries: technology and entertainment. Driven by Silicon Valley, the tech sector in California offers some of the highest average salaries in the nation. Most recent data from the California Budget & Policy Center reveals that 1% of California’s population earns 30.5% of the income, likely keeping them from ranking higher among the wealthiest states. Income inequality and the high cost of living make California a nice place to visit but an expensive place to live.
6. Hawaii ($95,322)
Hawaii’s tourism industry is a significant source of income for many of Hawaii’s residents. Income from tourism, combined with government contracts and military spending, keeps the islands of Hawaii not only economically afloat but prosperous.
Warning
Before you hop on a flight to Hawaii in search of high-paying jobs and white sandy beaches, you should note that Hawaii’s housing prices are the highest in the nation.
7. Washington ($94,605)
Washington consistently ranks in the top wealthiest states in the U.S., thanks partly to hosting 17 Fortune 500 companies. The state’s biotechnology, clean energy, and aerospace developments also contribute to Washington’s residents’ high median average income. While Washington is one of the wealthiest states, residents of Washington pay higher than average home prices.
The Bottom Line
These states boast robust, wealthy economies thanks partly to their industry, proximity to natural resources, and educational opportunities. They also have something else in common: a high cost of living.
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Publish date : 2024-12-31 04:00:00
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