The state with the highest income isn't New York or California. See the 15 states where people earn the most.
A WalletHub study ranks US states by income, revealing that traditional hubs like New York and California are not the highest-earning states. The report highlights that income disparity and the migration of high-wealth individuals are key factors influencing these rankings.
Why it matters
Understanding state-level income trends provides insight into economic migration patterns and the shifting landscape of the American middle class.
The median income in the US is about $83,000, but some states clear that number by a lot. AerialPerspective Images/Getty Images WalletHub ranked states where people have the highest income, using several different measurements. Some states with mega-high earners didn't rank high due their fairly average median incomes. California landed outside of the top 10 as many high earners are leaving the state. The median income in the US is about $83,000 — and you could make more or less than that number depending on where you live. But which states are the highest earning overall? A new WalletHub study used three income-related measures to rank states: the average annual income of the top 5%, the average annual income of the bottom 20%, and the median annual household income of the state's entire population. The resulting rankings include some surprises. None of the states known for being home to billionaires, like New York , California, and Florida , took the top spot. WalletHub analyst Chip Lupo said New York's income disparity is a reason it came up just short of the No. 1 ranking. While the top 5% makes a lot, the state's middle class isn't making nearly as much. "In terms of just the median annual income, which I think is what most people are interested in as far as that's a reflection of the middle class, New York is a little above average in terms of its median annual income at $96,000," Lupo told Business Insider. One state that barely cracked the top 15 is California; a state known for movie stars and moguls. Lupo posited that the Golden State's lower ranking on the list may have been impacted by several top earners leaving. "What's going on in California also is the number of high-wealth individuals that are fleeing the state," Lupo said. "A lot of wealth is moving out of the state and into more tax-friendly states like Texas, Florida, and Tennessee. So that's a huge driver." Read on for the 15 states where people have the highest income, according to WalletHub. 15. Florida Miami. tifonimages/Getty Images Total score: 49.89 Average annual income of top 5%: $507,073 Median annual income: $75,737 Average annual income of bottom 20%: $16,378 14. Georgia Atlanta. Dan Reynolds Photography/Getty Images Total score: 52.76 Average annual income of top 5%: $516,260 Median annual income: $72,437 Average annual income of bottom 20%: $17,301 13. California San Francisco. Prasit photo/Getty Images Total score: 53.45 Average annual income of top 5%: $482,584 Median annual income: $133,974 Average annual income of bottom 20%: $14,662 12. District of Columbia Washington, DC. halbergman/Getty Images Total score: 54.11 Average annual income of top 5%: $488,074 Median annual income: $174,287 Average annual income of bottom 20%: $9,579 11. Texas Dallas. joe daniel price/Getty Images Total score: 54.93 Average annual income of top 5%: $520,378 Median annual income: $75,905 Average annual income of bottom 20%: $17,651 10. Massachusetts Boston. DenisTangneyJr/Getty Images Total score: 57.11 Average annual income of top 5%: $498,062 Median annual income: $137,563 Average annual income of bottom 20%: $14,440 9. Illinois Chicago. Aerial_Views/Getty Images Total score: 57.88 Average annual income of top 5%: $533,840 Median annual income: $83,277 Average annual income of bottom 20%: $16,813 8. Minnesota Minneapolis, Minnesota. joe daniel price/Getty Images Total score: 58.66 Average annual income of top 5%: $500,074 Median annual income: $90,632 Average annual income of bottom 20%: $20,662 7. Colorado Denver, Colorado. Ultima_Gaina/Getty Images Total score: 59.65 Average annual income of top 5%: $498,587 Median annual income: $106,187 Average annual income of bottom 20%: $19,588 6. Utah Salt Lake City, Utah. Vadym Terelyuk/Getty Images Total score: 61.24 Average annual income of top 5%: $475,515 Median annual income: $98,858 Average annual income of bottom 20%: $24,307 5. Connecticut Hartford, Connecticut. Sean Pavone/Getty Images Total score: 64.73 Average annual income of top 5%: $543,016 Median annual income: $122,032 Average annual income of bottom 20%: $15,095 4. Washington Seattle. SCStock/Getty Images Total score: 65.23 Average annual income of top 5%: $522,328 Median annual income: $112,933 Average annual income of bottom 20%: $19,082 3. New Jersey Jersey City, New Jersey. OlegAlbinsky/Getty Images Total score: 66.08 Average annual income of top 5%: $527,376 Median annual income: $125,766 Average annual income of bottom 20%: $17,418 2. New York New York. Art Wager/Getty Images Total score: 66.27 Average annual income of top 5%: $585,523 Median annual income: $96,746 Average annual income of bottom 20%: $13,633 1. Virginia Arlington, Virginia. SeanPavonePhoto/Getty Images Total score: 67.57 Average annual income of top 5%: $545,097 Median annual income: $95,339 Average annual income of bottom 20%: $19,671 Read the original article on Business Insider
The article relies on data from a third-party study and presents multiple perspectives on why certain states rank lower than expected.
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