How Much Income Inequality Exists in Every State

Across 41 states, the bottom 20% make less than $20,000 on average. Meanwhile, the top 20% earn more than $250,000 in 25 states — accounting for half of America. While it’s not exactly a new development to hear income inequality persists in every state, recent data compiled by GOBankingRates reveals the lines between massive wealth and abject poverty are increasingly stark. 

GOBankingRates was able to determine the amount of income inequality by sourcing the 2023 American Community Survey for each state’s Gini index, which summarizes the dispersion of income across the country. The Gini coefficient ranges from 0 (perfect equality) to 1 (perfect inequality). No state received a 0. 

Additional factors analyzed include the bottom 20% of earners’ average income, the top 20% of earners’ average income, the top 5% of earners’ average income and  top 5% of earners’ share of wealth.

• The bottom 20% earn less than $20,000 in 41 states. 
• By sharp comparison, the top 20% earn $300,000 in 10 states: New York (#1), Connecticut (#2), California (#4), Massachusetts (#5), New Jersey (#10), Virginia (#20), Washington (#25), Colorado (#32), Maryland (#34) and Hawaii (#42). 
• New York has the most income inequality. New York is also one of five states where the top 5% earn $600,000 on average. Connecticut, California, Massachusetts and New Jersey round out the remaining states.
• Louisiana ranks third. While California, Connecticut, Massachusetts and New York are all well known for their expense, Louisiana is by far the lowest cost state to rank in the top five for income inequality.
• The top 5% have a 25% share of wealth in New York and Connecticut. Across the United States, this amounts to more than 20% in 47 states. Alaska is the only state where the top 5% have less than a 20% share of wealth — but at 19.4% it won’t be long before the top 5% has a 20%+ share of wealth in every US state.

Ranked from highest to lowest Gini index, keep reading to view the amount of income inequality in every state.

• Bottom 20% average income: $15,334
• Top 20% average income: $342,150
• Top 5% average income: $646,648
• Top 5% share of wealth: 25.7%
• Gini index (0-1): 0.5152

• Bottom 20% average income: $18,939
• Top 20% average income: $358,875
• Top 5% average income: $676,016
• Top 5% share of wealth: 25%
• Gini index (0-1): 0.4984

• Bottom 20% average income: $11,406
• Top 20% average income: $223,489
• Top 5% average income: $394,301
• Top 5% share of wealth: 23%
• Gini index (0-1): 0.4944

• Bottom 20% average income: $19,606
• Top 20% average income: $356,382
• Top 5% average income: $638,872
• Top 5% share of wealth: 23.4%
• Gini index (0-1): 0.4887

• Bottom 20% average income: $18,796
• Top 20% average income: $364,076
• Top 5% average income: $642,510
• Top 5% share of wealth: 22.8%
• Gini index (0-1): 0.4877

• Bottom 20% average income: $16,315
• Top 20% average income: $266,051
• Top 5% average income: $499,610
• Top 5% share of wealth: 24.5%
• Gini index (0-1): 0.4849

• Bottom 20% average income: $11,083
• Top 20% average income: $197,470
• Top 5% average income: $346,882
• Top 5% share of wealth: 22.5%
• Gini index (0-1): 0.4840

• Bottom 20% average income: $13,044
• Top 20% average income: $212,270
• Top 5% average income: $385,873
• Top 5% share of wealth: 23.4%
• Gini index (0-1): 0.4807

• Bottom 20% average income: $16,674
• Top 20% average income: $289,355
• Top 5% average income: $521,013
• Top 5% share of wealth: 23.1%
• Gini index (0-1): 0.4802

• Bottom 20% average income: $20,700
• Top 20% average income: $359,314
• Top 5% average income: $632,685
• Top 5% share of wealth: 22.6%
• Gini index (0-1): 0.4800

• Bottom 20% average income: $12,871
• Top 20% average income: $219,518
• Top 5% average income: $384,038
• Top 5% share of wealth: 22.3%
• Gini index (0-1): 0.4783

• Bottom 20% average income: $15,866
• Top 20% average income: $264,953
• Top 5% average income: $472,175
• Top 5% share of wealth: 22.8%
• Gini index (0-1): 0.4779

• Bottom 20% average income: $13,043
• Top 20% average income: $219,022
• Top 5% average income: $395,106
• Top 5% share of wealth: 22.9%
• Gini index (0-1): 0.4776

• Bottom 20% average income: $12,418
• Top 20% average income: $216,944
• Top 5% average income: $373,030
• Top 5% share of wealth: 21.8%
• Gini index (0-1): 0.4774

• Bottom 20% average income: $14,418
• Top 20% average income: $237,160
• Top 5% average income: $428,094
• Top 5% share of wealth: 23.1%
• Gini index (0-1): 0.4773

• Bottom 20% average income: $16,872
• Top 20% average income: $272,904
• Top 5% average income: $487,366
• Top 5% share of wealth: 22.8%
• Gini index (0-1): 0.4765

• Bottom 20% average income: $15,742
• Top 20% average income: $249,042
• Top 5% average income: $446,248
• Top 5% share of wealth: 22.9%
• Gini index (0-1): 0.4760

• Bottom 20% average income: $15,072
• Top 20% average income: $238,504
• Top 5% average income: $435,202
• Top 5% share of wealth: 23.3%
• Gini index (0-1): 0.4755

• Bottom 20% average income: $16,609
• Top 20% average income: $266,309
• Top 5% average income: $473,542
• Top 5% share of wealth: 22.6%
• Gini index (0-1): 0.4737

• Bottom 20% average income: $19,781
• Top 20% average income: $316,724
• Top 5% average income: $547,015
• Top 5% share of wealth: 21.8%
• Gini index (0-1): 0.4716

• Bottom 20% average income: $12,333
• Top 20% average income: $197,286
• Top 5% average income: $340,667
• Top 5% share of wealth: 21.6%
• Gini index (0-1): 0.4697

• Bottom 20% average income: $14,390
• Top 20% average income: $219,134
• Top 5% average income: $389,979
• Top 5% share of wealth: 22.3%
• Gini index (0-1): 0.4675

• Bottom 20% average income: $15,460
• Top 20% average income: $237,659
• Top 5% average income: $420,966
• Top 5% share of wealth: 22.2%
• Gini index (0-1): 0.4674

• Bottom 20% average income: $17,024
• Top 20% average income: $258,414
• Top 5% average income: $470,305
• Top 5% share of wealth: 22.9%
• Gini index (0-1): 0.4669

• Bottom 20% average income: $21,589
• Top 20% average income: $325,947
• Top 5% average income: $574,868
• Top 5% share of wealth: 22.2%
• Gini index (0-1): 0.4660

• Bottom 20% average income: $15,897
• Top 20% average income: $234,836
• Top 5% average income: $420,563
• Top 5% share of wealth: 22.4%
• Gini index (0-1): 0.4652

• Bottom 20% average income: $15,909
• Top 20% average income: $240,130
• Top 5% average income: $419,606
• Top 5% share of wealth: 21.8%
• Gini index (0-1): 0.4639

• Bottom 20% average income: $16,750
• Top 20% average income: $237,041
• Top 5% average income: $430,052
• Top 5% share of wealth: 22.7%
• Gini index (0-1): 0.4634

• Bottom 20% average income: $17,609
• Top 20% average income: $259,767
• Top 5% average income: $461,363
• Top 5% share of wealth: 22.2%
• Gini index (0-1): 0.4624

• Bottom 20% average income: $17,956
• Top 20% average income: $269,437
• Top 5% average income: $470,649
• Top 5% share of wealth: 21.7%
• Gini index (0-1): 0.4621

• Bottom 20% average income: $17,075
• Top 20% average income: $276,548
• Top 5% average income: $477,607
• Top 5% share of wealth: 21.2%
• Gini index (0-1): 0.4607

• Bottom 20% average income: $21,409
• Top 20% average income: $307,101
• Top 5% average income: $538,026
• Top 5% share of wealth: 21.7%
• Gini index (0-1): 0.4576

• Bottom 20% average income: $16,977
• Top 20% average income: $237,505
• Top 5% average income: $418,624
• Top 5% share of wealth: 21.7%
• Gini index (0-1): 0.4567

• Bottom 20% average income: $21,505
• Top 20% average income: $327,400
• Top 5% average income: $554,828
• Top 5% share of wealth: 20.7%
• Gini index (0-1): 0.4560

• Bottom 20% average income: $18,092
• Top 20% average income: $247,090
• Top 5% average income: $447,231
• Top 5% share of wealth: 22.3%
• Gini index (0-1): 0.4556

• Bottom 20% average income: $17,493
• Top 20% average income: $240,712
• Top 5% average income: $425,080
• Top 5% share of wealth: 21.8%
• Gini index (0-1): 0.4555

• Bottom 20% average income: $17,522
• Top 20% average income: $246,410
• Top 5% average income: $437,736
• Top 5% share of wealth: 21.8%
• Gini index (0-1): 0.4551

• Bottom 20% average income: $18,239
• Top 20% average income: $252,655
• Top 5% average income: $434,633
• Top 5% share of wealth: 21%
• Gini index (0-1): 0.4522

• Bottom 20% average income: $16,520
• Top 20% average income: $226,387
• Top 5% average income: $396,992
• Top 5% share of wealth: 21.4%
• Gini index (0-1): 0.4520

• Bottom 20% average income: $21,058
• Top 20% average income: $282,691
• Top 5% average income: $497,204
• Top 5% share of wealth: 21.5%
• Gini index (0-1): 0.4500

• Bottom 20% average income: $19,803
• Top 20% average income: $266,218
• Top 5% average income: $463,843
• Top 5% share of wealth: 21.2%
• Gini index (0-1): 0.4495

• Bottom 20% average income: $21,178
• Top 20% average income: $310,254
• Top 5% average income: $526,148
• Top 5% share of wealth: 20.5%
• Gini index (0-1): 0.4495

• Bottom 20% average income: $17,308
• Top 20% average income: $235,402
• Top 5% average income: $417,388
• Top 5% share of wealth: 21.4%
• Gini index (0-1): 0.4483

• Bottom 20% average income: $17,834
• Top 20% average income: $230,785
• Top 5% average income: $414,593
• Top 5% share of wealth: 21.8%
• Gini index (0-1): 0.4470

• Bottom 20% average income: $17,958
• Top 20% average income: $231,690
• Top 5% average income: $405,907
• Top 5% share of wealth: 21.2%
• Gini index (0-1): 0.4447

• Bottom 20% average income: $19,548
• Top 20% average income: $240,204
• Top 5% average income: $431,824
• Top 5% share of wealth: 21.9%
• Gini index (0-1): 0.4442

• Bottom 20% average income: $18,642
• Top 20% average income: $238,669
• Top 5% average income: $418,668
• Top 5% share of wealth: 21.1%
• Gini index (0-1): 0.4434

• Bottom 20% average income: $23,065
• Top 20% average income: $297,363
• Top 5% average income: $507,282
• Top 5% share of wealth: 20.4%
• Gini index (0-1): 0.4414

• Bottom 20% average income: $21,333
• Top 20% average income: $270,877
• Top 5% average income: $445,464
• Top 5% share of wealth: 19.4%
• Gini index (0-1): 0.4333

• Bottom 20% average income: $24,390
• Top 20% average income: $276,288
• Top 5% average income: $483,169
• Top 5% share of wealth: 20.6%
• Gini index (0-1): 0.4277

Methodology: For this piece GOBankingRates looked at all states and found the following factors for each state: (1) Gini Index measuring income inequality (definition below); (2) bottom 20% of earners’ average income; (3) top 20% of earners’ average income; (4) top 5% of earners’ average income; (5) bottom 20% of earners’ share of wealth; (6) top 20% of earners’ share of wealth; (7) top 5% of earners’ share of wealth; (8) median household income; and (9) average household income. For rankings only factor (1) was considered. All data was sourced from the 2023 American Community Survey as conducted by the U.S. Census Bureau. All data was collected on and is up to date as of May 29, 2025.

Gini Index: The Gini Index is a summary measure of income inequality. The Gini coefficient incorporates the detailed shared data into a single statistic, which summarizes the dispersion of income across the entire income distribution. The Gini coefficient ranges from 0, indicating perfect equality (where everyone receives an equal share), to 1, perfect inequality (where only one recipient or group of recipients receives all the income). The Gini is based on the difference between the Lorenz curve (the observed cumulative income distribution) and the notion of a perfectly equal income distribution.