20 Richest States in America
Do rich states translate to higher incomes?
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Is there a relationship between a state’s wealth and how much its residents get paid?
To figure this out, GOBankingRates first determined the richest states in America based on five factors: GDP per state, state poverty rate, state median income, median home value and state tax revenue per capita. States were ranked based on overall scores, and the 20 richest states were identified.
Click through to find out if your state is one of the richest.
20. Delaware
- Median income: $61,017 (No. 14 highest income of all states)
- Gross state product (in billions): $74.2
- Poverty rate: 11.2 percent
Although Delaware’s state GDP is on the lower end, its median income is among the highest in the U.S., which helps the state rank as one of the richest.
The most profitable industry in the state is the automotive industry, a separate GOBankingRates study found.
19. Vermont
- Median income: $56,104 (No. 20 highest income of all states)
- Gross state product (in billions): $32.9
- Poverty rate: 9.9 percent
Vermont has the lowest GDP of all the states, but it also has one of the lowest poverty rates. Even with its low GDP, the New England state is richer than some countries, according to a separate GOBankingRates study.
18. Rhode Island
- Median income: $58,387 (No. 19 highest income of all states)
- Gross state product (in billions): $61.1
- Poverty rate: 11.5 percent
Rhode Island actually has one of the lowest GDPs of all the states, but it’s one of the states with the most improved economies in 2017, a separate GOBankingRates study found.
17. Utah
- Median income: $62,518 (No. 13 highest income of all states)
- Gross state product (in billions): $169.1
- Poverty rate: 9.4 percent
A low poverty rate and high median income help make Utah one of the richest states. Home values are also high — the median home list price in Utah is $305,800.
Do you know what the biggest industry in the state is? You might be surprised.
16. Illinois
- Median income: $59,196 (No. 16 highest income of all states)
- Gross state product (in billions): $837.3
- Poverty rate: 12.2 percent
Illinois has a relatively high GDP and an above-average median income, which make it one of the richest states. However, it also is one of the states with the most amount of debt. A separate 2017 GOBankingRates study found that Illinois owes billions in pension debt.
15. Wyoming
- Median income: $59,143 (No. 17 highest income of all states)
- Gross state product (in billions): $37.9
- Poverty rate: 10.1 percent
Wyoming is one of the richest states, but it’s also the least economically diverse state, a separate GOBankingRates study found. The majority of the state’s economy depends on two sectors: government, and trade, transportation and utilities.
14. Alaska
- Median income: $74,444 (No. 2 highest income of all states)
- Gross state product (in billions): $50.3
- Poverty rate: 11.2 percent
Alaska might be one of the richest states, but it’s actually one of the states that are still suffering from the recession, a separate GOBankingRates study found. Alaska has the second-highest median income of all the states. But with a high unemployment rate, many Alaskans don’t make any income at all.
13. Virginia
- Median income: $66,149 (No. 8 highest income of all states)
- Gross state product (in billions): $523.4
- Poverty rate: 10.8 percent
Virginia’s median income and state GDP are both among the highest of all the states — but this doesn’t mean that the state’s population is all wealthy. Conversely, wealth inequality is a major problem in Virginia — it’s one of the states where the poor are getting poorer, a 2017 GOBankingRates study found.
12. Colorado
- Median income: $62,520 (No. 12 highest income of all states)
- Gross state product (in billions): $344.9
- Poverty rate: 10.2 percent
Colorado is one of the richest states because of its low poverty rate, high median income and high median home value.
Fortunately for Colorado residents, it’s one of the states that have recovered from the Great Recession — its unemployment went from one of the highest to one of the lowest in the U.S., according to a separate GOBankingRates study.
11. Washington
- Median income: $62,848 (No. 11 highest income of all states)
- Gross state product (in billions): $509.7
- Poverty rate: 11.5 percent
Washington has a high median income, and it’s even higher in the state’s wealthiest city, Clyde Hill. In the Seattle suburb, the median income is nearly $200,000, a separate GOBankingRates study found.
10. Minnesota
- Median income: $63,217 (No. 10 highest income of all states)
- Gross state product (in billions): $354.6
- Poverty rate: 8.3 percent
Minnesota has the second-lowest poverty rate in the U.S. and one of the highest median incomes as well. But $63,217 a year is chump change compared to what the richest entrepreneur in the state makes. Pauline MacMillan Keinath, the heiress to Cargill, is worth $5.2 billion.
It Pays to Be Rich: The Daily Costs of Living Like a Billionaire
9. New Hampshire
- Median income: $68,485 (No. 7 highest income of all states)
- Gross state product (in billions): $84.2
- Poverty rate: 6.9 percent
New Hampshire has the lowest poverty rate in the U.S. and the seventh-highest median income, so it’s ranked as one of the richest states despite its low GDP.
The median household income is even higher in the Bedford school district, which is the richest school district in the state, according to another GOBankingRates study.
8. North Dakota
- Median income: $59,114 (No. 18 highest income of all states)
- Gross state product (in billions): $50.9
- Poverty rate: 10.5 percent
North Dakota has the highest tax revenue per capita of any state, which helps make it the most fiscally successful state.
7. Connecticut
- Median income: $71,755 (No. 5 highest income of all states)
- Gross state product (in billions): $279.2
- Poverty rate: 9.2 percent
Of all the states, Connecticut has the fourth-lowest poverty rate, the fifth-highest median income and the third-highest tax revenue per capita.
The median home value is on the higher end as well at $239,900, and it’s even higher in the state’s most expensive zip code.
6. Maryland
- Median income: $76,067 (No. 1 highest income of all states)
- Gross state product (in billions): $403
- Poverty rate: 8.9 percent
Maryland has the highest median income of all the states. It’s also the state with the most millionaires and the state with the richest retirees, two separate GOBankingRates studies found.
5. Massachusetts
- Median income: $70,954 (No. 6 highest income of all states)
- Gross state product (in billions): $545
- Poverty rate: 11.6 percent
Massachusetts is rich now, but it’s one of the least recession-proof states, a separate GOBankingRates study found. That’s because it’s one of the least economically diverse states, its long-term debt per capita is among the highest in the U.S., and the average mortgage debt of its residents is also among the highest.
4. New Jersey
- Median income: $73,702 (No. 3 highest income of all states)
- Gross state product (in billions): $617.3
- Poverty rate: 10.6 percent
New Jersey has the third-highest median income of all the states. The median income is even higher in some areas, like Mendham, which is the second-richest zip code in America, according to another GOBankingRates study.
3. New York
- Median income: $60,741 (No. 15 highest income of all states)
- Gross state product (in billions): $1,580
- Poverty rate: 13.4 percent
New York has the third-highest GDP of all the states. It also has the second-highest tax revenue per capita. And it’s not just the state itself that’s rich — New York is home to the second-richest area code in the U.S.: 516, located in Long Island.
2. Hawaii
- Median income: $71,977 (No. 4 highest income of all states)
- Gross state product (in billions): $90.1
- Poverty rate: 10.3 percent
At $614,300, Hawaii has the highest median home value of all the states. Hawaii also has the fourth-highest median income in the U.S., and the 10th-lowest poverty rate.
Hawaii only ranks No. 2, however, because of its low GDP. The state’s biggest export is airplane and helicopter parts, according to a different GOBankingRates study.
1. California
- Median income: $63,783 (No. 9 highest income of all states)
- Gross state product (in billions): $2,803.5
- Poverty rate: 14.5 percent
California has the highest GDP of all the states. In fact, California is richer than Indonesia, Israel and South Korea combined, a different GOBankingRates study found. It also has the second-highest median home value at $539,000. However, it also has the highest poverty rate compared to the other richest states.
Richest States in America: How State Wealth and Personal Wealth Compare
There is a direct correlation between state wealth and the median income within the state. The 20 states with the highest median income are also the 20 richest states. However, it’s important to note that just because a state is rich, that does not mean its population is all rich. In 14 of the 20 states, poverty rates are in the double digits.
Additionally, 17 of the 20 richest states are among the top 20 states with the highest cost of living, so it takes a higher income to live there.
Click through to read about the states where you and your family can live a richer life.
More on Wealth
- Doing Something That Scares You Could Help You Build Your Wealth
- The Secret Wealth Behind These Big Cities
- These 19 Metro Areas Have the Biggest Wealth Gaps, Study Finds
Methodology: GOBankingRates determined the richest states in America by scoring the following factors: (1) GDP per state, sourced from the Census Bureau; (2) state poverty rates, sourced from the Census Bureau; (3) state median income, sourced from the Census Bureau; (4) median home value, sourced from Zillow’s May 2018 index; and (5) state tax revenue per capita, sourced from the Tax Policy Center. GBR scored all of the factors (with the lowest score being best and the highest being worst) and added up the cumulative scores in order to determine which states are richest.
About the Author
Gabrielle Olya
Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Before joining the team, she was a staff writer-reporter for People Magazine and People.com. Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she has been featured on “Good Morning America” as a celebrity news expert.
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