The state you decide to live in can have a big impact on how far your paycheck goes, since some of them stand out for their strong earning power. Income levels reflect a combination of job opportunities, industry development, educational attainment, and regional economic conditions.
To showcase this ranking, Stacker consulted WalletHub's analysis of the states where people earn the most money. It compared all 50 states using cost-of-living-adjusted measures, including median household income, the average income of top earners, and the average income of lower-income households. This strategy provides a bigger picture of earnings across different income groups.
As a result, the states with stronger economies and access to some of the nation's most competitive industries are listed below. Most of them are home to major business hubs, technology centers, financial institutions, and government employers. These states continue to offer some of the strongest earning opportunities in the country.
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1 / 25#25. Delaware
Total score: 41.63
Average Annual Income of Top 5%: $434,280
Median Annual Income: $93,090
Average Annual Income of Bottom 20%: $18,651
Despite being one of the country's smallest states, Delaware punches above its weight when it comes to household income. In the state, financial services play the biggest part in the economy, especially around large operations. Also, the business-friendly environment and proximity to major East Coast markets help support earnings that rank among the nation's highest.
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2 / 25#24. Michigan
Total score: 42.47
Average Annual Income of Top 5%: $472,285
Median Annual Income: $66,568
Average Annual Income of Bottom 20%: $17,489
Michigan's economy has become far more diverse than its automotive reputation may suggest. While Detroit remains closely tied to the auto industry, growing sectors such as healthcare, technology, and advanced manufacturing have strengthened income opportunities across the state. Smaller communities around Ann Arbor and Grand Rapids have also helped fuel economic growth in recent years.
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3 / 25#23. Missouri
Total score: 43.24
Average Annual Income of Top 5%: $474,872
Median Annual Income: $63,960
Average Annual Income of Bottom 20%: $17,925
A relatively affordable cost of living helps Missouri residents stretch their earnings further than residents of many coastal states. Major employers in the St. Louis and Kansas City metro areas support a wide range of careers, from healthcare and logistics to finance and engineering. Those economic advantages helped the Show-Me State earn a place in the top 25.
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4 / 25#22. Pennsylvania
Total score: 44.11
Average Annual Income of Top 5%: $475,515
Median Annual Income: $79,396
Average Annual Income of Bottom 20%: $16,529
From Philadelphia's financial and healthcare sectors to Pittsburgh's growing technology scene, Pennsylvania benefits from multiple economic engines rather than relying on a single industry. The state's mix of large metropolitan areas, research institutions, and established employers creates opportunities for households across different income levels.
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5 / 25#21. Tennessee
Total score: 44.39
Average Annual Income of Top 5%: $489,574
Median Annual Income: $64,242
Average Annual Income of Bottom 20%: $16,714
Over the last decade, Tennessee has attracted businesses and new residents at a rapid pace. Nashville's booming healthcare and entertainment industries, along with manufacturing growth around Chattanooga and Knoxville, have contributed to rising incomes statewide. A key factor is the absence of a state income tax, which remains a draw for many professionals and entrepreneurs.
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6 / 25#20. Idaho
Total score: 44.76
Average Annual Income of Top 5%: $451,372
Median Annual Income: $77,612
Average Annual Income of Bottom 20%: $20,170
Few states have grown as quickly as Idaho in recent years. The capital, Boise, has become a magnet for technology companies, remote workers, and entrepreneurs looking for a lower-cost alternative to larger West Coast cities. That combination of investment and talent has helped push household earnings higher across much of the state.
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7 / 25#19. North Carolina
Total score: 44.98
Average Annual Income of Top 5%: $486,532
Median Annual Income: $69,097
Average Annual Income of Bottom 20%: $16,869
The Research Triangle continues to be one of North Carolina's biggest economic advantages. Anchored by Raleigh, Durham, and Chapel Hill, the region attracts employers working in technology, healthcare, and biotechnology. Strong job growth has helped elevate incomes while drawing new residents from across the country.
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8 / 25#18. Arizona
Total score: 45.08
Average Annual Income of Top 5%: $468,720
Median Annual Income: $82,171
Average Annual Income of Bottom 20%: $17,627
A booming and hectic Phoenix metro area has transformed Arizona into one of the Southwest's economic success stories. Major semiconductor investments, expanding healthcare systems, and a growing financial sector have created thousands of well-paying jobs throughout Maricopa County and beyond.
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9 / 25#17. New Hampshire
Total score: 47.47
Average Annual Income of Top 5%: $431,904
Median Annual Income: $120,743
Average Annual Income of Bottom 20%: $19,109
What stands out about New Hampshire is how high household earnings remain despite its relatively small population. Many residents work in industries connected to the greater Boston economy while enjoying life in communities such as Nashua, Portsmouth, and Manchester. That combination has helped support one of the nation's highest median incomes.
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10 / 25#16. Maryland
Total score: 49.12
Average Annual Income of Top 5%: $446,096
Median Annual Income: $130,760
Average Annual Income of Bottom 20%: $17,099
Maryland benefits from something few states can match: direct access to the federal government. High-paying jobs tied to Washington, D.C., along with major employers in Bethesda, Rockville, and Baltimore, have made the state a consistent leader in household income rankings.
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11 / 25#15. Florida
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
Beyond its beaches and tourism industry, Florida has developed a surprisingly diverse economy. Financial firms in Miami, aerospace operations along the Space Coast, and healthcare networks across Orlando and Tampa all contribute to the state's strong earning potential.
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12 / 25#14. Georgia
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
The state's capital, Atlanta, serves as the economic engine behind much of Georgia's success. Home to Fortune 500 headquarters, one of the world's busiest airports, and a growing technology sector, the metro area has helped drive income growth across the Peach State.
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13 / 25#13. California
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
No state has more recognizable economic hubs than California. Silicon Valley, Los Angeles, San Diego, and Orange County collectively support industries ranging from technology and entertainment to biotech and international trade. Those opportunities continue to generate some of the country's highest earnings.
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14 / 25#12. District of Columbia
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
Although it is not a state, the District of Columbia ranks among the nation's wealthiest jurisdictions. Federal agencies, lobbying firms, law offices, consulting companies, and nonprofit organizations create a concentration of high-income jobs rarely found anywhere else in the United States.
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15 / 25#11. Texas
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
Everything may be bigger in Texas, but so is its economic footprint. Energy remains a major driver, yet cities such as Austin, Dallas, Houston, and San Antonio have expanded into technology, healthcare, manufacturing, and financial services, helping raise incomes across the state.
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16 / 25#10. Massachusetts
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
Education has long been one of Massachusetts' greatest economic strengths. World-renowned institutions such as Harvard University and MIT help fuel innovation throughout Greater Boston, attracting talent, startups, and investment from around the world.
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17 / 25#9. Illinois
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
At the heart of Illinois' economy sits Chicago, one of the nation's largest financial and transportation hubs. The city is the center for banking, commodities trading, logistics, and corporate headquarters, while major universities and healthcare systems strengthen the broader economy. Those advantages help explain why Illinois ranks among the country's top states for household income.
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18 / 25#8. Minnesota
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
Minnesota rarely receives the same attention as coastal economic powerhouses, yet its numbers speak for themselves. Large employers headquartered in the Twin Cities, including companies in healthcare, retail, and manufacturing, create a stable economic foundation. Strong educational outcomes and a highly skilled workforce further contribute to the state's impressive income levels.
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19 / 25#7. Colorado
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
Look beyond the Rocky Mountain scenery, and you'll find one of the fastest-growing economies in the country. Denver has emerged as a major center for technology, aerospace, finance, and renewable energy, drawing businesses and workers from across the nation. That momentum has helped elevate household earnings throughout much of Colorado.
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20 / 25#6. Utah
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
Among the states in the top 10, Utah stands out for having the highest average income among households in the bottom 20%. Rapid growth along the Wasatch Front, particularly in Salt Lake City, Provo, and Lehi's Silicon Slopes corridor, has created opportunities across a wide range of industries. As a result, income gains have been felt by many residents rather than only top earners.
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21 / 25#5. Connecticut
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
Connecticut's location between New York City and Boston gives it access to two of the country's most powerful economic regions. Many residents commute to high-paying finance and professional services jobs, while cities such as Stamford and Greenwich have become major business centers in their own right. That combination helps keep household incomes among the highest in the nation.
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22 / 25#4. Washington
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
A significant share of Washington's economic success can be traced to the Seattle metropolitan area. Global companies including Amazon and Microsoft have helped transform the region into one of the world's leading technology hubs. Add in aerospace, international trade, and a thriving startup ecosystem, and it's easy to see why earnings remain so strong.
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23 / 25#3. New Jersey
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
New Jersey benefits from something that few states can replicate: direct access to both New York City and Philadelphia. Many of its highest-earning residents work in finance, healthcare, pharmaceuticals, and corporate management while living in communities throughout Bergen County, Princeton, and the Jersey suburbs.
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24 / 25#2. New York
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
New York recorded the highest average income among top earners in WalletHub's analysis. Wall Street remains a major driver, but the state's economy also benefits from industries ranging from media and technology to healthcare and higher education.
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25 / 25#1. Virginia
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
Virginia claimed the top spot thanks to Northern Virginia, including Arlington, Alexandria, and Fairfax County, which is home to a dense concentration of government contractors, technology firms, consulting companies, and defense-related employers. Combined with close ties to Washington, D.C., Virginia is the nation's highest-ranking state for household income.
