Understanding what the average income is in your state can help you get a sense of where your own salary falls. Averages are typically measured in two ways: mean and median. Mean or “average” income takes the total amount of earnings across a sample and divides it by the number of participants. Median income, on the other hand, is the midway point of a sample, with half the people sampled earning above the median and half earning less.
The difference can be significant. High earners can skew the average income much higher than the median income. To use a simple example, if two earners make $20,000, one makes $40,000 and two make $120,000, the median income is $40,000. However, the average is $64,000. Thus, depending on how you measure “average” income, the figures can be highly variable. This differential can be seen in terms of the U.S. as a whole, where the average family household income is $97,962 but the median is just $69,717.
Regional differences can also play a huge role in average income. States with higher costs typically also have higher average wages. However, some states have higher wages overall regardless of typical expenses. For example, California is regarded as a high-cost state, and average salaries top $111,000. However, Minnesota is not generally considered an expensive place to live, yet average salaries top $96,000 in the state, above the national average income of $91,547.
To help get the black-and-white figures for worker income in every U.S. state, GOBankingRates conducted a study using five-year estimates from the U.S. Census Bureau’s 2021 American Community Survey. Both mean and median state income figures were tallied. Results are presented in alphabetical order, from Alabama to Wyoming.
