Discover the Wealthiest and Poorest States in the U.S.: Median Income Insights for 2025

The distribution of wealth across the United States reveals striking contrasts that shape the economic landscape of the nation.

As one of the richest countries globally, the U.S. holds approximately 30.8% of the world’s total wealth, amounting to $139.9 trillion, according to the latest UBS Global Wealth Report 2023. This surpasses China, the second-largest holder of global wealth at 18.6% or $84.5 trillion, making the U.S. the leader in total wealth accumulation.

Moreover, the U.S. boasts the highest number of millionaires worldwide, with nearly 22 million adults representing 38% of the global millionaire population, as reported in the UBS Global Wealth Report 2024. China follows with 6 million millionaires, comprising 10%. This economic allure attracts over a million immigrants annually, seeking prosperity.

However, wealth distribution within the U.S. is uneven, with significant income inequality. Despite its vast wealth, 11.1% of Americans lived in poverty in 2023, highlighting persistent economic challenges.

In terms of individual wealth, the median net worth per adult in the U.S. stood at $112,157 in 2023, considerably lower than Luxembourg’s $372,258, the highest globally.

Key Insights

• The United States leads globally in total wealth and millionaire population.
• Income inequality remains a critical issue, with many states experiencing low median incomes and high poverty rates.
• Maryland, Massachusetts, and New Jersey rank highest in median household income.
• Mississippi, West Virginia, and Arkansas have the lowest median household incomes.

Understanding Wealth Through Median Income

Median income offers a clearer picture of economic well-being by identifying the middle point of income distribution, avoiding distortions caused by extremely high or low earners. Unlike average income, which can be skewed by outliers, median income accurately reflects what a typical household earns.

The Impact of Race and Gender on Income

Systemic racism and sexism significantly influence income disparities. For instance, Black women earn about 80 cents for every dollar earned by White men, while Black men earn approximately 84.6% of White men’s median weekly earnings. Wealth ownership also varies, with White families holding substantially more wealth than Black and Hispanic families.

Gender income gaps persist, with women earning roughly 83 cents on the dollar compared to men, though this narrows to 99 cents when accounting for job-related factors. Women are underrepresented in high-paying leadership roles, comprising only 10.4% of Fortune 500 CEOs as of 2024.

Median Household Income Explained

The U.S. Census Bureau defines median household income as the total gross income of all individuals aged 15 and older living in a housing unit. This measure includes single-person households and unrelated individuals living together, providing a comprehensive view of economic status.

In 2023, the median household income in the U.S. was $80,610.

Top States by Median Household Income

The following states lead the nation in median household income:

District of Columbia (Special Mention)

• Median Household Income: $106,287 (2023)
• Population: 702,250 (July 2024)
• Unemployment Rate: 5.5% (December 2024)
• Poverty Rate: 14.0% (2023)

Though not a state, the District of Columbia boasts the highest median income due to its federal government presence, which is the largest employer. It also has the highest population density and significant housing values, yet it experiences a notable poverty rate among affluent areas.

1. Maryland

• Median Household Income: $101,652 (2023)
• Population: 6.26 million (July 2024)
• Unemployment Rate: 3.1% (December 2024)
• Poverty Rate: 9.5% (2023)

Maryland’s economy thrives with $382.4 billion in private-sector output and the highest federal employment per capita, benefiting from proximity to Washington, D.C. Key federal agencies like the Social Security Administration and FDA are headquartered here.

2. Massachusetts

• Median Household Income: $101,341 (2023)
• Population: 7.13 million (July 2024)
• Unemployment Rate: 4.1% (December 2024)
• Poverty Rate: 10.4% (2023)

Massachusetts has evolved from agriculture and maritime roots to a modern economy dominated by education, professional services, and hospitality industries.

3. New Jersey

• Median Household Income: $101,050 (2023)
• Population: 9.5 million (July 2024)
• Unemployment Rate: 4.6% (December 2024)
• Poverty Rate: 9.7% (2023)

New Jersey, the most densely populated state, excels in healthcare, contributing $37 billion to its economy and employing nearly half a million people. It is also historically significant for pioneering major sports and entertainment industries.

States with the Lowest Median Household Income

At the other end, these states have the lowest median incomes:

1. Mississippi

• Median Household Income: $54,915 (2023)
• Population: 2.94 million (July 2024)
• Unemployment Rate: 3.3% (December 2024)
• Poverty Rate: 18% (2023)

Despite extensive farmland, Mississippi faces high poverty and food insecurity, with the federal government as a major employer.

2. West Virginia

• Median Household Income: $57,917 (2023)
• Population: 1.76 million (July 2024)
• Unemployment Rate: 4.2% (December 2024)
• Poverty Rate: 16.7% (2023)

West Virginia struggles with persistent poverty despite federal employment and has historically high unemployment rates.

3. Arkansas

• Median Household Income: $58,773 (2023)
• Population: 3.08 million (July 2024)
• Unemployment Rate: 3.4% (December 2024)
• Poverty Rate: 15.7% (2023)

Agriculture dominates Arkansas’ economy, with significant forestry resources. Major corporations like Walmart and Tyson Foods are headquartered here, yet income levels remain low.

Which State Tops Median Income Rankings?

Maryland leads U.S. states with a median household income of $101,652 in 2023, while the District of Columbia surpasses all with $106,287.

Defining Middle-Class Income

Middle-class income varies by region due to cost-of-living differences. For example, a household income considered middle class in Arkansas might not qualify in New York City. Generally, a three-person household earning between $51,967 and $155,902 falls within the middle-class range.

Percentage of Americans Earning Over $100,000

In 2024, 37.8% of U.S. households earned more than $100,000 annually, marking an increase from pre-2008 levels but a slight decrease from 2019.

Final Thoughts

While the United States remains the wealthiest nation globally, significant disparities in income and wealth persist across states, races, and genders. Understanding these differences is crucial for addressing economic inequality and fostering inclusive prosperity.

Correction—September 27, 2024: This article has been updated to accurately reflect that Black women earned approximately $0.80 for every $1 earned by White men, based on a 2023 Payscale study.

Discover engaging topics and analytical content in Economy as of 27-09-2024. The article titled " Discover the Wealthiest and Poorest States in the U.S.: Median Income Insights for 2025 " provides new insights and practical guidance in the Economy field. Each topic is meticulously analyzed to deliver actionable information to readers.

The topic " Discover the Wealthiest and Poorest States in the U.S.: Median Income Insights for 2025 " helps you make smarter decisions within the Economy category. All topics on our website are unique and offer valuable content for our audience.