What State Has The Highest Median Income? Maryland tops the list with a median household income of $101,652 in 2023, as revealed by income-partners.net. For those seeking to increase their earning potential through strategic partnerships and income diversification, understanding these economic landscapes is crucial. Explore income-generating opportunities, financial prosperity strategies, and potential business collaborations.
Table of Contents
- Measuring Wealth: What Median Income Tells Us
- How Race and Gender Affect Income
- Median Household Income
- Richest States by Median Income
- Special Consideration: District of Columbia
- Maryland
- Massachusetts
- New Jersey
- Poorest States by Median Income
- Mississippi
- West Virginia
- Arkansas
- Which State Has the Highest Median Income?
- What Is Middle-Class Income?
- What Percentage of Americans Make Over $100k?
- The Bottom Line
- Frequently Asked Questions (FAQs)
1. Measuring Wealth: What Median Income Tells Us
Median income provides valuable insights into the economic well-being of a population. Unlike other metrics such as GDP or mean income, median income offers a more accurate representation of the typical earnings of individuals and households in a given area.
There are several methods to evaluate wealth within a specific region. A state’s gross domestic product (GDP) offers insights into its overall economic health, but it may not accurately reflect the financial situations of individual households. Mean income, calculated by dividing the total of all values by the number of values, serves as the primary mathematical tool for comparisons. However, the presence of a significant number of high-earning individuals or low-income residents in a region can distort the results, obscuring the true earnings of individuals.
The median provides a clearer picture. It is determined by arranging all values in a dataset in numerical order and identifying the “middle” value. A state’s median income represents the exact midpoint between the earnings of individuals on both ends of the wealth spectrum. This makes median income a more reliable indicator of the average American’s annual earnings compared to the actual average income.
2. How Race and Gender Affect Income
Structural inequalities related to race and gender significantly impact the financial well-being of many Americans. Understanding these disparities is crucial for fostering a more equitable economic landscape.
A significant factor contributing to American income inequality is the disparity in earnings based on race. According to a 2024 Payscale study, Black women earn approximately 80 cents for every dollar earned by White men. The U.S. Bureau of Labor Statistics reported that in the fourth quarter of 2024, Black men earned 84.6% as much as White men in median weekly earnings.
Furthermore, Black and Hispanic families possess less wealth compared to White families. Data from 2022 indicates that the median wealth for a typical White family was $285,000, while it was $44,900 for a typical Black family and $61,600 for a typical Hispanic family.
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A noticeable income gap exists between men and women in the United States. Women earn approximately 83 cents for every dollar earned by men in an uncontrolled gender pay gap, while they earn 99 cents for every dollar in a controlled gender pay gap. Controlled gender pay gaps consider factors such as job title, education, experience, industry, job level, and hours worked.
These discrepancies are further exacerbated by the fact that men constitute 36.4% of minimum-wage workers as of 2023, while women account for only 10.4% of Fortune 500 CEOs as of 2024.
In the fourth quarter of 2024, Asian and White women earned a median of $1,367 and $1,094 per week, respectively, while Black women and Hispanic or Latinas earned a median of $978 and $844 per week, respectively. Women of color experienced a higher poverty rate than White women, highlighting the intersectional challenges they face.
3. Median Household Income
Median household income is a key metric used by the U.S. Census Bureau to assess the economic well-being of different regions. It represents the total gross income of all individuals aged 15 years or older within a housing unit.
According to the Missouri Census Data Center, median household income is “perhaps the single most widely used measure of income in the census” when comparing different parts of the nation. This metric includes households with only one resident, as well as those with multiple residents who are not related, such as roommates.
It is important to distinguish median household income from other measures used by the census, such as:
- Median per capita income: This metric focuses on the income of each individual person, rather than treating a household as a single entity.
- Median family income: This metric only considers households with two or more people related by birth, marriage, or adoption.
As of 2023, the most recent available figures, the median U.S. annual household income was $80,610.
4. Richest States by Median Income
The map below illustrates the distribution of median income across the U.S.
Let’s examine the states with the highest median incomes:
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5. Special Consideration: District of Columbia
- Median household income: $106,287 (2023)
- Population: 702,250 (July 1, 2024)
- Unemployment rate: 5.5% (December 2024)
- Poverty rate: 14.0% (2023)
While the District of Columbia is not a state, the U.S. Census Bureau includes it when listing median income. This inclusion is justified by the fact that the District’s median income surpasses that of any state. As expected, the federal government is the largest employer in the nation’s capital.
D.C. boasts the highest population density in the U.S. and the second-highest median value of owner-occupied housing units. Despite its high income and small population, D.C. also has the highest poverty rate among the wealthiest states.
6. Maryland
- Median household income: $101,652 (2023)
- Population: 6.26 million (July 1, 2024)
- Unemployment rate: 3.1% (December 2024)
- Poverty rate: 9.5% (2023)
Maryland’s private-sector industries generated $382.4 billion in economic output. The state also had the largest number of federal jobs per capita in 2020, owing to its proximity to Washington, D.C. The Social Security Administration and the Food and Drug Administration are both headquartered in Maryland.
7. Massachusetts
- Median household income: $101,341 (2023)
- Population: 7.13 million (July 1, 2024)
- Unemployment rate: 4.1% (December 2024)
- Poverty rate: 10.4% (2023)
Massachusetts’ economy was initially heavily reliant on agriculture and maritime trade, before manufacturing gained prominence in the 19th century. Today, education and professional and business services employ the largest portion of the state’s workforce. The leisure and hospitality industry is also a significant economic driver.
8. New Jersey
- Median household income: $101,050 (2023)
- Population: 9.5 million (July 1, 2024)
- Unemployment rate: 4.6% (December 2024)
- Poverty rate: 9.7% (2023)
New Jersey not only has the largest population of the three richest (and the three poorest) states, but also the highest population density of any state in the U.S. Healthcare is the state’s largest industry, contributing $37 billion to the economy and employing approximately 488,000 people. New Jersey is also the birthplace of major industries such as organized baseball, professional basketball, movies, and passenger flights.
9. Poorest States by Median Income
Now, let’s turn to the other end of the spectrum and examine the states with the lowest median incomes.
10. Mississippi
- Median household income: $54,915 (2023)
- Population: 2.94 million (July 1, 2024)
- Unemployment rate: 3.3% (December 2024)
- Poverty rate: 18% (2023)
Despite 35% of Mississippi’s land being dedicated to farmland, the federal government is the fourth-largest employer in the state, after trade, transportation, and utilities. Mississippi has the highest poverty rate in the country and is also known as the “hungriest state,” with 20% of its population experiencing food insecurity.
11. West Virginia
- Median household income: $57,917 (2023)
- Population: 1.76 million (July 1, 2024)
- Unemployment rate: 4.2% (December 2024)
- Poverty rate: 16.7% (2023)
In West Virginia, the federal government is the largest employer. Before the COVID-19 outbreak, West Virginia’s 1938 unemployment rate was the highest in U.S. history.
12. Arkansas
- Median household income: $58,773 (2023)
- Population: 3.08 million (July 1, 2024)
- Unemployment rate: 3.4% (December 2024)
- Poverty rate: 15.7% (2023)
Agriculture is Arkansas’ largest industry, adding $16 billion to the state’s economy annually. Forests cover 56% of the land, with 25% belonging to the forestry industry. Despite the low income and high poverty rate, several major companies, including Tyson Foods and Walmart, are headquartered in Arkansas.
13. Which State Has the Highest Median Income?
Maryland has the highest median income among U.S. states, with a median household income of $101,652 in 2023. Including the District of Columbia, it surpasses all states with a median income of $106,287 in 2023.
14. What Is Middle-Class Income?
What is considered middle-class income depends on a person’s location. A middle-class person in Arkansas may not be a middle-class person in New York City, for example, where the cost of living is much higher. Generally, a three-person household should have an income between $51,967 and $155,902 to be considered middle class.
15. What Percentage of Americans Make Over $100k?
As of 2024, 37.8% of American households made over $100,000. This is slightly lower than in 2019 but higher than any point before 2019. In fact, before the financial crisis in 2008, it was 30.8%.
16. The Bottom Line
While the United States is the wealthiest country in the world, income and wealth inequality persist throughout the nation. This is evident in the disparities in median income and poverty rates across different states, as well as in income gaps based on gender and race.
Ready to explore partnership opportunities and boost your income? Visit income-partners.net to discover strategies, connect with potential collaborators, and unlock your financial potential.
17. Frequently Asked Questions (FAQs)
Q1: What factors contribute to income inequality in the U.S.?
A1: Income inequality in the U.S. is influenced by factors such as racial and gender disparities in earnings, unequal distribution of wealth, and differences in educational and employment opportunities.
Q2: How can I find potential business partners in high-income states?
A2: income-partners.net offers resources and connections to help you identify and connect with potential business partners in high-income states, increasing your chances of successful collaborations.
Q3: What are the benefits of partnering with businesses in states with high median incomes?
A3: Partnering with businesses in states with high median incomes can provide access to affluent markets, increased investment opportunities, and a more stable economic environment, fostering business growth and profitability.
Q4: How does median income differ from average income?
A4: Median income represents the midpoint of a distribution, providing a more accurate measure of typical earnings by minimizing the impact of extreme values. Average income, on the other hand, can be skewed by very high or very low incomes.
Q5: What role does education play in increasing median income?
A5: Higher levels of education often lead to better job opportunities and higher salaries, contributing to an increase in median income for individuals and households.
Q6: Can strategic partnerships really help increase my income?
A6: Absolutely. Strategic partnerships provide access to new markets, resources, and expertise, all of which can significantly boost your income potential.
Q7: What types of partnerships are most effective for income growth?
A7: Effective partnerships vary depending on your industry and goals, but some common types include joint ventures, marketing alliances, and distribution partnerships.
Q8: How does the cost of living affect the significance of median income in different states?
A8: The cost of living varies significantly across states, so a high median income in one state might not provide the same standard of living as a lower median income in a more affordable state.
Q9: What are some common industries in states with high median incomes?
A9: States with high median incomes often have strong sectors in technology, finance, healthcare, and education, providing numerous high-paying job opportunities.
Q10: Where can I find more information about income trends and partnership opportunities in the U.S.?
A10: income-partners.net offers a wealth of resources, including articles, data analysis, and networking opportunities, to help you stay informed and make strategic decisions about your income-generating ventures.
