10 U.S. states where Americans earn the lowest incomes—only 2 aren't in the South (2024)

FAQs

What states have the lowest income in the US? ›

The states with the highest proportions of low-income residents include Mississippi (24%), New Mexico (23%), Louisiana (21%), and Oklahoma (20%). If we look at population counts (instead of proportions), the states with the largest populations naturally stand out as having the highest numbers of low-income residents.

Median annual income in the U.S. in 2023

Mississippi has the lowest-earning population in the U.S. with a median annual wage of just $37,500, according to the BLS.

Massachusetts tops the rankings with the highest median wage of $60,690 for individual workers, while Mississippi has the lowest median wage in the country at $37,500. Here's the median annual wage for workers in every state: Alabama: $41,350.

According to the U.S. Census Bureau, the national poverty rate was 12.4% in 2022, up from 11.2% in 2021. These states have the highest percentages of poverty in the country: Mississippi, Louisiana, West Virginia, New Mexico, Arkansas, Kentucky, Alabama, Oklahoma, Texas, and New York.

The three U.S. states with the highest GDPs were California ($3.987 trillion), Texas ($2.664 trillion), and New York ($2.226 trillion). The three U.S. states with the lowest GDPs were Vermont ($44.4 billion), Wyoming ($51.4 billion), and Alaska ($69.2 billion).

Southern states have consistently had lower median wages than other regions over the past 40 years. In 2021, the median hourly wage was $20.03 in the South, 9.3% lower than wages in the West and 15.9% lower than wages in the Northeast.

The federal minimum wage for covered nonexempt employees is $7.25 per hour.

South Carolina

No state minimum wage law. Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.

According to the most recent data from the U.S. Census Bureau, the national threshold for being in the top 10% of household incomes in 2021 was $191,406 per year. However, this single number doesn't tell the full story. The income needed to be a top 10% earner varies considerably based on age and geographic location.

What is top 10 percent income in the US? ›

Top earners across the United States earn at least six figures, with an average income of over $160,000 for those in the top 10% in 2021. Earners in the top 1% must make $1 million per year in California, Connecticut, Massachusetts, New Jersey, and Washington.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

By the median income standard, Mississippi is poorest state in the U.S., with a household average income of $52,985. It is closely followed by West Virginia, with an average of $55,217, and Arkansas with an income rate of $56,335, as of 2022.

As of January 1, 2024, the District of Columbia had the highest minimum wage in the U.S., at 17 U.S. dollars per hour. This was followed by Washington, which had 16.28 U.S. dollars per hour as the state minimum wage.

States with the Lowest Per Capita Income

The following ten states have the lowest PCI, in ascending order: Mississippi ($39,368), West Virignia ($42,336), Alabama ($43,984), Kentucky ($44,017), Arkansas ($44,845), South Carolina ($45,314), Idaho ($45,642), Arizona ($46,233), and North Carolina ($47,803).

Which Are the Tax-Free States? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.

In the United States (in 2017), the place with the lowest median household income was Little River, California (population 117), while the place with the lowest median household income with a population of more than 1,000 was Comerío Zona Urbana in Comerío, Puerto Rico (population 4,312).