The states where residents earn the highest incomes
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A new analysis has identified Virginia as the state where residents enjoy the strongest incomes overall, underscoring the income disparities that continue to exist across the United States.
To assess where Americans are faring best financially, peresonal finance website WalletHub compared all 50 states and the District of Columbia using three income-based measures adjusted for cost of living: the average annual income of the top 5% of earners, the average annual income of the bottom 20%, and the median income for all residents.
Virginia leads the nation
By the numbers:
Virginia ranked first overall in WalletHub's study, thanks to strong earnings across income levels.
The state's top 5% of earners brought in an average of $545,097 annually, the second-highest figure in the nation. Meanwhile, residents in the bottom 20% earn an average of $19,671 per year, ranking fourth nationally.
Aerial view of Richmond Skyline. Virginia. (Credit: Getty Images)
Virginia's median annual income stood at $95,339, placing it 17th among states.
Virginia was followed by New York and New Jersey.
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In New York, the average annual income of the top 5% of earners was $585,523, the highest in the country. Meanwhile, the bottom 20% of earners made an average of $13,633 per year, which ranked 45th out of the 50 states and the District of Columbia.
The top 5% of New Jersey residents earned an average of $527,376 annually, the fifth-highest number in the country. In addition, the median income in the state is $125,766, which is the sixth-highest.The bottom 20% of the population earned $17,418 per year.
What they're saying:
"The highest-earning 10% of individuals in the United States earn over 12 times more than those in the lowest-earning 10%, based on the latest Census data," Chip Lupo, a WalletHub analyst, said in a statement. "By measuring the income of various percentiles against a state's median income, we can better identify where income disparities are more prevalent, which could help us better understand why residents of certain states struggle more to make ends meet."
Income levels by state
- Virginia
- New York
- New Jersey
- Washington
- Connecticut
See the full report here.
The Source: Data used to create this ranking was collected as of May 5, 2026 from the U.S. Census Bureau and Council for Community and Economic Research. This story was reported from Los Angeles.