🏆 Top 5 States by Per Capita Income (2025)
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Washington, D.C. – $108,848
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Massachusetts – $94,849
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Connecticut – $94,192
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Wyoming – $87,284
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New York – $87,061
🧠 Insight: These states lead due to a concentration of high-paying industries (government, finance, tech) and urbanized workforces. But keep in mind D.C. and MA also have very high cost-of-living indexes, which offsets real purchasing power.
📊 National Averages
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Median household income (2023): $80,610
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Per capita income (Q4 2024): $73,251
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Trend: Income grew 4% from 2022–2023, yet still lower than pre-pandemic 2019 levels ($81,210).
⚖️ Median vs. Per Capita Income
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Why median is better: It reflects the middle of the income distribution and isn't skewed by outliers (like billionaires or extremely low earners).
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Example: Incomes of $20,000 and $200,000 average to $110,000 — misleading unless you also look at the median, which would be $110,000 only if evenly distributed (which it usually isn't).
🧮 Cost-of-Living Reality Check
States with high income often also have a high cost of living, which erodes financial comfort. Consider:
| State | Per Capita Income | Cost-of-Living Index |
|---|---|---|
| California | $86,834 | 141.6 |
| Massachusetts | $94,849 | 145.1 |
| Hawaii | $70,454 | 182.3 🔥 |
| Mississippi | $52,757 | 87.3 (Lowest) |
💡 Conclusion: A high salary doesn’t always translate to better living standards — especially in expensive states like Hawaii or California.
📉 Lowest Income States
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Mississippi – $52,757
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West Virginia – $55,532
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Kentucky – $58,200
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New Mexico – $58,286
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Alabama – $57,551
These states also tend to have lower cost-of-living, but they often lack access to high-income industries, making economic mobility more difficult.
🌍 Demographic Gaps
By Gender:
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National Pay Gap: Women earn $0.83 per $1 earned by men.
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Worst Gap: Louisiana – $0.71
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Smallest Gap: Rhode Island – $0.89
By Race/Ethnicity:
| Group | Median Household Income |
|---|---|
| Asian | $112,800 |
| White (non-Hispanic) | $89,050 |
| Hispanic | $65,540 |
| Black | $56,490 |
Mississippi and Arkansas show the widest racial income gaps, highlighting persistent inequality.
By Education:
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Bachelor’s or higher: $126,800 median income
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No high school diploma: $36,620
That’s a 246% difference, underscoring the value of education in upward mobility.
📍 Regional Patterns
| Region | Median Income | Notes |
|---|---|---|
| West | $88,290 | Highest – due to tech and logistics |
| Northeast | $86,250 | Urbanized, high-skilled jobs |
| Midwest | $81,020 | Rural with some manufacturing hubs |
| South | $73,280 | Lowest – many low-wage industries |
✅ Bottom Line
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Median income is a better measure of typical economic well-being than per capita income.
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Cost of living plays a huge role in determining real purchasing power.
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Demographic disparities in gender, race, age, and education continue to shape economic inequality.
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For policymaking and personal planning alike, contextual data matters more than raw averages.