5 States Where Median Household Incomes Went Up the Most
Written by
Rafaela Stalbalk Klose
Edited by
Molly Sullivan
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Ever wonder which parts of the country are seeing the biggest pay raises? While some areas are struggling to keep up with rising costs, a few states are actually seeing a boost in household incomes. In 2023, Americans experienced the first significant rise in median household incomes since 2019, with national growth around 4%, according to the U.S. Census Bureau.
However, the real story of income growth is playing out on the state level, where some states saw double-digit increases. Here are the states where median household incomes spiked the most from 2022 to 2023.
1. South Dakota
South Dakota saw the biggest jump in median household income, rising 17% from $69,850 in 2022 to $81,740 in 2023 — a solid $11,890 increase. This growth comes as more high-income earners move to the state, drawn by no state income tax, affordable living and expanding job opportunities in fields like healthcare, finance and tech. South Dakota has also become a hotspot for remote workers seeking more space and a lower cost of living. With a steady influx of wealthy households, South Dakota’s economy is booming, and incomes are following suit.
2. Vermont
Vermont’s median household income saw a notable 13.5% jump in 2023, rising from $75,060 to $85,190. This increase was driven by an influx of higher-income residents, many of whom relocated during the pandemic for the state’s natural beauty, low population density and better quality of life. Vermont also benefited from economic recovery and job growth, particularly in sectors like healthcare and remote-friendly work.
3. Arkansas
Arkansas saw a 12.7% jump in median household income, rising from $56,120 to $63,250. This significant boost points to solid economic growth, likely driven by improvements in key sectors like manufacturing, agriculture and transportation. Recent tax cuts may have also played a role, giving residents more financial flexibility. Overall, the rise in income reflects the state’s economic momentum, making Arkansas a standout for income growth compared to other regions.
4. New Hampshire
New Hampshire saw an 11.8% rise in median household income, jumping from $88,350 to $98,780. This growth reflects the state’s strong, diverse economy, which includes key sectors like healthcare, education and manufacturing. Even though many residents commute to nearby metro areas like Boston, New Hampshire boasts one of the lowest unemployment rates in the country — just 2.3% as of November, according to Bureau of Labor Statistics data. With its high wages, solid job market and lack of state income or sales tax, New Hampshire continues to be an attractive place for those seeking both career opportunities and a great quality of life.
5. Kansas
Kansas saw an 11.7% increase in median household income, rising from $75,950 to $84,830. This significant growth reflects positive economic trends in the state, driven by strong job markets in key sectors like agriculture, manufacturing and energy. Efforts to diversify the economy have further bolstered this growth. Kansas also benefits from a relatively low cost of living, allowing residents to experience real financial gains as wages rise. Additionally, state initiatives aimed at boosting economic development have attracted more businesses, contributing to higher-paying jobs and supporting income growth, making Kansas more appealing to both current residents and newcomers.
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