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Massachusetts is currently the richest state in the U.S., according to the latest U.S. Census Bureau data, with a median household income of $99,858 in 2023.
Close behind are New Jersey and Maryland, each with median incomes nearing six figures. These states lead the nation in wealth thanks to their strong economies, highly educated workforces, and high-paying industries like tech, finance, biotech, and government contracting.
Below is a look at the seven wealthiest states in America and what factors contribute to their financial dominance.
Key Takeaways
- 4 of 7 wealthiest states are in the northeastern U.S.
- Education levels and proximity to major economic hubs (like NYC, Boston, and D.C.) strongly correlate with higher incomes.
- States with higher median income also typically have higher cost of living and housing prices.
- High-paying industries such as tech, biotech, finance, and federal contracting drive median incomes upward in these states.
1. Massachusetts ($99,858)
A rising tide lifts all boats, and the economic prosperity of the Boston area is one example where the metaphor rings true. The Massachusetts economy positively impacts neighboring states like New Hampshire.
Massachusetts is also consistently ranked one of the highest-educated states in the country and #1 in education. Additionally, employment opportunities in industries like health care, biotechnology, and financial services bring high earners to the state.
2. New Jersey ($99,781)
Thanks to its location between New York City and Philadelphia, New Jersey attracts high-income earners who prefer suburban living. It’s a hub for financial services, logistics, and life sciences, helping it maintain one of the highest median incomes in the country.
3. Maryland ($98,678)
Maryland regularly ranks as one of the wealthiest states. The state benefits from its proximity to Washington, D.C., offering plentiful federal jobs and lucrative contracting opportunities.
Maryland ranks high in two other key economic indicators: lowest unemployment rate and highest educational attainment levels. The state also boasts miles of ocean coastline, including the Port of Baltimore and the Chesapeake Bay, creating a strong coastal economy.
4. New Hampshire ($96,838)
Approximately 80% of New Hampshire’s residents live and work in their home state in one of the state’s various growing industries. Additionally, New Hampshire’s proximity to Boston, Massachusetts, attracts commuters in high-paying industries to the state.
5. California ($95,521)
California leads U.S. tourism and is a global leader in two high-profile, high-value industries: technology and entertainment.
Driven by Silicon Valley, the tech sector in California offers some of the highest average salaries in the nation. Income inequality and the high cost of living make California a nice place to visit but an expensive place to live.
6. Hawaii ($95,322)
Hawaii’s tourism industry is a significant source of income for many of Hawaii’s residents. Income from tourism, combined with government contracts and military spending, keeps the islands of Hawaii not only economically afloat but prosperous.
Warning
Before you hop on a flight to Hawaii in search of high-paying jobs and white sandy beaches, you should note that Hawaii’s housing prices are the highest in the nation.
7. Washington ($94,605)
Washington consistently ranks in the top wealthiest states in the U.S., thanks partly to hosting 17 Fortune 500 companies, including Amazon, Microsoft, and Boeing. The state’s biotechnology, clean energy, and aerospace developments also contribute to Washington’s residents’ high median average income.
While Washington is one of the wealthiest states, residents of Washington pay higher than average home prices, particularly in the Seattle metro area.
Which State Has the Most Billionaires?
As of March 2024, California is home to the most billionaires, 197 to be exact. New York came in second place with 139 billionaires.
Which Region of the U.S. Has the Most High-Income States?
The Northeast dominates the list, with four out of the top seven richest states located in this region.
Does a Higher Median Income Mean a Lower Cost of Living?
Usually the opposite is true. States with higher median household incomes typically also have higher costs of living, especially when it comes to housing, healthcare and everyday expenses. For example, Hawaii and California both rank among the richest states, but they also top the charts for most expensive housing markets in the U.S.
The Bottom Line
The richest states in the U.S. share common traits: access to quality education, high-paying industries, and proximity to economic hubs. While their residents earn more, these states also tend to come with higher living costs, especially for housing. Still, they represent the financial centers of American prosperity.
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