Average Income by State
The most recent report from the United States government reveals that the average US annual gross income surged past $94,000 in 2022, marking a continued upward trajectory since 2018.
Given the substantial differences in the cost of living across states, it's evident that average incomes can vary significantly from one state to another. Understanding the income levels of potential buyers is crucial for businesses aiming to tailor effective pricing strategies. Here's an overview of the average income by state to aid in crafting a more informed approach.
Average income by state: highest income states in 2022
According to the latest report by the US Bureau of Economy Analysis, Massachusetts is the state with the highest per capita income. As of 2022, workers there reported an average annual income of $84,561, which translates to around $7,047 per month. This marks a 1.3% increase from the previous year, when workers there said they earned an average of $83,461. Consequently, individuals in Massachusetts earn a remarkable 29.2% more than the national average, which is estimated at $65,470 per year, or $5,456 per month.
Second on the list ranking average incomes is Connecticut, another state in the New England region. The average worker there earns $82,938 per year, a slight margin of $1,623 less than their counterparts in Massachusetts. These two states stand out as the only ones with an average annual income surpassing $80,000.
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New Jersey is the state with the third-highest income, with $77,199. California and Colorado round out the five highest-income states—workers there earn $77,036 and $75,722 per year, respectively.
Sixth on the ranking of per capita income by state is New York, with $75,407. Washington and New Hampshire follow, with average annual incomes of $75,332 and $73,910, respectively. Number nine on this list ranking average incomes is Wyoming. Workers there earned an average of $73,248 in 2022. North Dakota rounds out the top 10, with $70,360.
Lowest per capita income states: bottom two
At the opposite end of the spectrum, Mississippi and West Virginia stand out as the states with the lowest average incomes. In Mississippi, individuals earned an average of $46,370 in 2022, while in West Virginia, the average annual income was $49,993. Notably, these were the only two states where annual incomes fell below $50,000.