With the median annual income in the US around $74,600, WalletHub released its report on the states where people have the highest incomes to get a sense of how well-off Americans are across the country.
The site specialized in Economics and Finance compared the 50 states and the District of Columbia through three key metrics: the average annual income of the top 5%, the average of the bottom 20% and the median of all residents of each state.
“The average annual income in the United States is around $74,600, according to the latest data from the Federal Reserve. However, there is a large income disparity: some people earn much more than that while others, unfortunately, are trapped in poverty,” the report states.
For her part, Cassandra Happe, analyst at WalletHub, commented: “The 10% of people with the highest incomes in the United States earn more than 12 times more than those in the 10% with the lowest incomes, according to the latest census data. By measuring income at various percentiles relative to a state’s median income, we can better identify where income disparities are most prevalent, which could help us better understand why residents of certain states have a harder time making ends meet. month”.
Income levels by state:
State: (1) Virginia
Total score: 69.59
Median annual income of top 5% (COLI adjusted): $518,296
Median annual income (COLI adjusted): $89,393
Median annual income of bottom 20% (COLI-adjusted): $18,694
State: (2) New Jersey
Total score: 68.85
Median annual income of top 5% (COLI adjusted): $505,621
Median annual income (COLI adjusted): $117,847
Median annual income of bottom 20% (COLI adjusted): $16,445
State: (3) New York
Total score: 67.60
Median annual income of top 5% (COLI adjusted): $553,436
Median annual income (COLI adjusted): $91,366
Median annual income of bottom 20% (COLI adjusted): $13,301
State: (4) Connecticut
Total score: 67.42
Median annual income of top 5% (COLI adjusted): $518,757
Median annual income (COLI adjusted): $114,156
Median annual income of bottom 20% (COLI adjusted): $14,576
State: (5) Washington
Total score: 62.29
Median annual income of top 5% (COLI-adjusted): $474,067
Median annual income (COLI adjusted): $103,748
Median annual income of bottom 20% (COLI adjusted): $18,223
In contrast:
State: (47) Vermont
Total score: 22.18
Median annual income of top 5% (COLI adjusted): $334,470
Median annual income (COLI adjusted): $89,695
Median annual income of bottom 20% (COLI adjusted): $14,477
State: (48) Maine
Total score: 19.64
Median annual income of top 5% (COLI adjusted): $338,866
Median annual income (COLI adjusted): $79,800
Median annual income of bottom 20% (COLI adjusted): $13,749
State: (49) Mississippi
Total score: 17.81
Median annual income of top 5% (COLI adjusted): $377,040
Median annual income (COLI adjusted): $46,880
Median annual income of bottom 20% (COLI-adjusted): $12,168
State: (50) New Mexico
Total score: 14.59
Median annual income of top 5% (COLI-adjusted): $351,972
Median annual income (COLI adjusted): $58,911
Median annual income of bottom 20% (COLI adjusted): $11,944
State: (51) West Virginia
Total score: 12.79
Median annual income of top 5% (COLI adjusted): $345,239
Median annual income (COLI adjusted): $52,719
Median annual income of bottom 20% (COLI-adjusted): $12,477
To consult the complete list and the methodology of the study, go here.
The case of Virginia
Virginia is the state where people have the highest incomes, when balanced between the median, the top 5% and the bottom 20% of earners.
The top 5% of earners in the state earn an average of $518,296 per year, while the bottom 20% earn an average of $18,694. While there is a large gap between these two figures, both rank as the third highest in the country. In other words, both the rich and the poor are doing better than their counterparts in other states.
The median annual income in Virginia is $89,393. This ranks 17th highest in the country, so it appears many people are skewed toward both sides of the wealth spectrum in Old Dominion.
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