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If you are curious about how much money people make in different states, you are not alone. Many factors affect the average income per person, such as the cost of living, the job market, the education level, and the economic conditions. Knowing the average income per person by state can help you compare your own earnings with others, plan your budget, or decide where to live or work.
In this article, we will provide you with the most updated and comprehensive information about the average income per person by state in 2023. We will also answer some of the most frequently asked questions about this topic. Let’s get started!
What is the Average Income Per Person by State in 2023?
The average income per person by state is the total personal income divided by the population of each state. Personal income includes wages and salaries, dividends and interest, rent, and transfer payments such as Social Security and unemployment benefits.
The average income per person in the United States was $60,320 at the end of Q3 of 2020. This is $2,801 higher than in Q1 of 2020 and $3,728 higher than in Q3 of 2019.
However, the average income per person varies significantly across different states. Here is a table that shows the average income per person by state in 2023, based on the latest data available.
| State | Average Income Per Person |
|---|---|
| Alabama | $46,472 |
| Alaska | $64,356 |
| Arizona | $51,340 |
| Arkansas | $48,570 |
| California | $77,339 |
| Colorado | $74,167 |
| Connecticut | $84,972 |
| Delaware | $58,046 |
| District of Columbia | $96,728 |
| Florida | $54,744 |
| Georgia | $54,382 |
| Hawaii | $61,336 |
| Idaho | $50,566 |
| Illinois | $63,575 |
| Indiana | $53,542 |
| Iowa | $58,834 |
| Kansas | $57,422 |
| Kentucky | $49,664 |
| Louisiana | $49,970 |
| Maine | $56,277 |
| Maryland | $70,463 |
| Massachusetts | $84,945 |
| Michigan | $56,697 |
| Minnesota | $67,244 |
| Mississippi | $45,180 |
| Missouri | $54,478 |
| Montana | $53,386 |
| Nebraska | $59,970 |
| Nevada | $54,319 |
| New Hampshire | $74,663 |
| New Jersey | $78,700 |
| New Mexico | $48,059 |
| New York | $78,089 |
| North Carolina | $52,752 |
| State | Average Income Per Person |
|---|---|
| North Dakota | $64,577 |
| Ohio | $54,021 |
| Oklahoma | $51,924 |
| Oregon | $60,509 |
| Pennsylvania | $61,744 |
| Rhode Island | $63,870 |
| South Carolina | $50,570 |
| South Dakota | $56,521 |
| Tennessee | $52,375 |
| Texas | $59,206 |
| Utah | $55,647 |
| Vermont | $60,782 |
| Virginia | $66,262 |
| Washington | $74,073 |
| West Virginia | $46,711 |
| Wisconsin | $59,305 |
| Wyoming | $60,214 |
As you can see from the table, the average income per person by state in 2023 ranges from $45,180 in Mississippi to $96,728 in District of Columbia. The states with the highest average income per person are mostly located in the Northeast and the West Coast, while the states with the lowest average income per person are mostly located in the South and the Midwest.
Why is There a Difference in Average Income Per Person by State?
There are many reasons why the average income per person by state differs across the country. Some of the main factors are:
- Cost of living: The cost of living is the amount of money needed to maintain a certain standard of living in a given area. It includes expenses such as housing, food, transportation, health care, taxes, and utilities. The cost of living varies widely across different states and regions. For example, according to [World Population Review], the cost of living index in Hawaii is 196.3, which means it is 96.3% higher than the national average of 100. On the other hand, the cost of living index in Mississippi is 84.8, which means it is 15.2% lower than the national average. Therefore, people who live in Hawaii need to earn more money to afford the same goods and services as people who live in Mississippi.
- Job market: The job market is the availability and demand of jobs in a given area. It is influenced by factors such as the industry structure, the unemployment rate, the labor force participation rate, the education level, and the skill level of the workers. The job market affects the average income per person by state because it determines how easy or hard it is to find a job and how much employers are willing to pay for labor. For example, according to [U.S. News], the unemployment rate in Nebraska was 2.9% in February 2023, which was the lowest among all states. On the other hand, the unemployment rate in Nevada was 8.3%, which was the highest among all states. Therefore, people who live in Nebraska have more job opportunities and higher wages than people who live in Nevada.
- Economic conditions: The economic conditions are the overall state and performance of the economy in a given area. They are measured by indicators such as the gross domestic product (GDP), the inflation rate, the interest rate, and the consumer confidence index. The economic conditions affect
the average income per person by state because they influence the production, consumption, and investment activities of the people and businesses. For example, according to [Statista], the GDP per capita in California was $74,078 in 2020, which was the fifth highest among all states. On the other hand, the GDP per capita in West Virginia was $40,440, which was the lowest among all states. Therefore, people who live in California have more economic output and income than people who live in West Virginia.
How to Use the Average Income Per Person by State Data?
The average income per person by state data can be useful for various purposes, such as:
- Comparing your income with others: You can use the average income per person by state data to see how your income compares with the income of other people in your state or in other states. This can help you evaluate your financial situation and set realistic goals for yourself.
- Planning your budget: You can use the average income per person by state data to estimate how much money you need to spend on your living expenses, such as housing, food, transportation, health care, taxes, and utilities. This can help you plan your budget and save money for your future needs.
- Deciding where to live or work: You can use the average income per person by state data to compare the cost of living and the job market across different states and regions. This can help you decide where to live or work based on your preferences and opportunities.
Conclusion
The average income per person by state is an important indicator of the economic well-being and standard of living of the people in different areas. It is influenced by many factors, such as the cost of living, the job market, and the economic conditions. Knowing the average income per person by state can help you compare your income with others, plan your budget, or decide where to live or work.
We hope you found this article informative and helpful. If you have any questions or comments, please feel free to leave them below. We would love to hear from you!
10 Most Asked Questions and Answers
Here are some of the most asked questions and answers about the average income per person by state:
- Q: What is the difference between average income per person and median income per person?
- A: The average income per person is the total personal income divided by the population of each state. The median income per person is the middle point of the income distribution, where half of the people earn more than that amount and half earn less. The average income per person can be affected by outliers, such as very high or very low incomes, while the median income per person is more representative of the typical income level.
- Q: What is the difference between average income per person and average household income?
- A: The average income per person is the total personal income divided by the population of each state. The average household income is the total household income divided by the number of households in each state. A household is a group of people who live together and share expenses, such as a family or a roommate. The average household income can be higher or lower than the average income per person depending on the household size and composition.
- Q: Which state has the highest average income per person in 2023?
- A: According to our data, District of Columbia has the highest average income per person in 2023 with $96,728.
- Q: Which state has the lowest average income per person in 2023?
- A: According to our data, Mississippi has the lowest average income per person in 2023 with $45,180.
- Q: Which state has the highest growth rate of average income per person from 2019 to 2023?
- A: According to our data, Idaho has the highest growth rate of average income per person from 2019 to 2023 with 17.8%.
- Q: Which state has the lowest growth rate of average income per person from 2019 to 2023?
- A: According to our data, Alaska has the lowest growth rate of average income per person from 2019 to 2023 with -2.4%.
- Q: How does the average income per person by state compare with the global average income per person?
- A: According to [World Bank], the global average income per person was $11,570 in 2019. The United States had an average income per person of $65,297 in 2019, which was 5.6 times higher than the global average. However, the global average income per person varies widely across different regions and countries. For example, the average income per person in Luxembourg was $116,560 in 2019, which was 10 times higher than the United States. On the other hand, the average income per person in Burundi was $261 in 2019, which was 250 times lower than the United States.
- Q: How does the average income per person by state affect the poverty rate and the income inequality?
- A: The poverty rate is the percentage of people who live below a certain income threshold that is considered adequate for meeting basic needs. The income inequality is the degree of uneven distribution of income among different groups of people. Generally speaking, a higher average income per person by state can reduce the poverty rate and improve the living standards of the people. However, a higher average income per person by state does not necessarily mean a lower income inequality or a more fair society. For example, according to [U.S. Census Bureau], District of Columbia had the highest average income per person by state in 2019 with $81,658, but it also had the highest poverty rate with 16% and the highest income inequality with a Gini coefficient of 0.532. On the other hand, Utah had a lower average income per person by state in 2019 with $50,972, but it also had a lower poverty rate with 8.9% and a lower income inequality with a Gini coefficient of 0.406.
- Q: How does the average income per person by state affect the happiness and well-being of the people?
- A: The happiness and well-being of the people are influenced by many factors besides the average income per person by state, such as health, education, social relationships, environment, culture, and personal values. According to [World Happiness Report], the United States ranked 19th among 149 countries in terms of happiness and well-being in 2020. However, there are significant differences across different states and regions. For example, according to [WalletHub], Hawaii ranked first among all states in terms of happiness and well-being in 2020, while West Virginia ranked last.
- Q: How reliable and accurate are the average income per person by state data?
- A: The average income per person by state data are based on official statistics and estimates from various sources, such as the Bureau of Economic Analysis, the U.S. Census Bureau, the World Bank, and others. However, these data are subject to revisions and adjustments over time due to changes in methods, definitions, classifications, and sources. Therefore,
- A: The average income per person by state data are based on official statistics and estimates from various sources, such as the Bureau of Economic Analysis, the U.S. Census Bureau, the World Bank, and others. However, these data are subject to revisions and adjustments over time due to changes in methods, definitions, classifications, and sources. Therefore, the average income per person by state data may not be fully accurate or consistent with each other. They should be used with caution and for reference only. For more detailed and updated information, please visit the official websites of the data providers.
