People earn the most income in these US states, new study says. Where did California rank?
Despite its high cost of living, California doesn’t rank among the top 10 U.S. states with the highest income earners, a new study found.
On Tuesday, online financial service WalletHub released a study ranking all 50 states in the nation — and Washington, D.C. — based on average annual income.
The real median household income in the United States was about $74,580 a year in 2022, according to the latest data from the Federal Reserve.
“There is a great deal of income disparity,” WalletHub said, “with some people making vastly more than that while others are unfortunately stuck in poverty.”
According to the study, California narrowly missed the Top 10 list for highest income, landing at No. 11.
Which US states had the highest income earners?
Virginia was No. 1 on WalletHub’s list of the U.S. states with the highest income earners.
According to the study, the average annual income of the top 5% earners in Virginia was $518,296.
The median annual income was $89,393, and those in the bottom 20% earned $18,694 a year on average.
New Jersey came in second place with the top 5% of earners making an average of $505,621 annually.
New York was third with top earners making $553,436 a year on average.
These were the top 10 states in the United States in terms of high income earners, according to WalletHub:
Virginia
New Jersey
New York
Connecticut
Washington
Utah
Illinois
Minnesota
Colorado
Massachusetts
What about California?
The Golden State was No. 11 on WalletHub’s list with the top earners making an average annual income of $454,829.
The median annual income in California was $123,988 and the lowest earners made $13,949 annually on average, according to the study.
Which states have the lowest income earners?
On the opposite end of the spectrum, West Virginia ranked No. 1 in WalletHub’s study as the U.S. state with the lowest income earners.
The average annual income of the top 5% in West Virginia was $345,239 and the bottom 20% of earners made an average of $12,477 each year. The average annual income is $52,719.
New Mexico and Mississippi were No. 2 and No. 3, respectively, in terms of the states with the lowest income earners in the nation.
These 10 states ranked the lowest in the nation in terms of annual income, according to WalletHub:
West Virginia
New Mexico
Mississippi
Maine
Vermont
Louisiana
Rhode Island
Alabama
Alaska
Kentucky
How did WalletHub come up with its rankings?
WalletHub used a weighted ranking system to rate the 50 states and Washington, D.C.
The factors include the average annual income of the top 5% earners, the median annual household income and the average annual income of the bottom 20% earners.
The metrics came from the U.S. Census Bureau and the Council for Community and Economic Research. They were adjusted for the cost of living index, according to WalletHub.
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