Average Household Income by State in America 2025
The economic landscape of American households continues to evolve with distinct patterns emerging across different states and demographic groups. Understanding average household income by state in the United States during 2025 provides crucial insights into regional economic disparities, employment opportunities, and quality of life variations that exist from coast to coast. The financial well-being of American families remains deeply intertwined with geographic location, educational attainment, and demographic characteristics that shape earning potential and economic mobility.
The latest data from the U.S. Census Bureau reveals a nation of stark economic contrasts, where median household income varies by more than $51,000 between the highest and lowest-earning jurisdictions. Coastal states continue to dominate the upper echelons of household earnings, driven by robust technology sectors, financial services, healthcare industries, and higher education institutions. Meanwhile, Southern and Appalachian regions face persistent economic challenges reflected in lower median incomes. These disparities underscore the importance of examining state-by-state income data to understand regional economic health, cost of living variations, and the factors that contribute to household prosperity across America’s diverse geographic and economic landscape.
Interesting Facts About Household Income Statistics in the US 2025
| Fact Category | Statistical Finding | Year |
|---|---|---|
| National Median Income | The U.S. median household income reached $81,604 in 2024, representing a 2.0% increase from $80,002 in 2023 | 2024 |
| Highest Earning State | Massachusetts leads all states with a median household income of $104,828, closely followed by New Jersey at $104,294 and Maryland at $102,905 | 2024 |
| District of Columbia | The District of Columbia recorded the nation’s highest median household income at $109,707, surpassing all 50 states | 2024 |
| Lowest Earning States | Mississippi reported the lowest median household income at $59,127, with West Virginia at $60,798, Louisiana at $60,986, and Arkansas at $62,106 | 2024 |
| Income Gap | The difference between the highest-earning jurisdiction (District of Columbia) and the lowest-earning state (Mississippi) exceeds $50,000 annually | 2024 |
| States with Growth | 29 states experienced statistically significant increases in median household income between 2023 and 2024 | 2024 |
| Education Premium | Households headed by someone with a bachelor’s degree or higher earned $132,700, more than double the $58,410 earned by high school graduates | 2024 |
| Coastal Dominance | States with the highest household incomes are heavily concentrated along the East Coast and West Coast, with Colorado being the highest-earning landlocked state at $97,113 | 2024 |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates (Report ACSBR-025, September 2025)
Understanding the Income Distribution Landscape
The $81,604 national median household income represents the midpoint where exactly half of American households earn more and half earn less. This figure, released by the U.S. Census Bureau in September 2025 based on 2024 data collection, marks a notable achievement as household incomes continue recovering from pandemic-era disruptions. The 2.0% increase from the previous year signals steady economic growth, though the benefits of this expansion have not been distributed equally across all states and demographic groups.
What makes this data particularly revealing is how it exposes the enormous variation in household prosperity across American states. The $51,000 gap between the highest and lowest earners represents more than just numbers—it reflects fundamental differences in economic structures, educational systems, industry composition, and historical development patterns that have shaped each region’s economic trajectory over decades. Coastal states benefit from concentrations of high-paying industries including technology, finance, biotechnology, and professional services, while many interior and Southern states rely more heavily on manufacturing, agriculture, and service industries that typically offer lower compensation levels.
Median Household Income by State Rankings in the US 2025
| State | Median Household Income (2024) | Percent Change from 2023 | National Ranking |
|---|---|---|---|
| Massachusetts | $104,828 | 2.0% | 1 |
| New Jersey | $104,294 | 1.5% | 2 |
| Maryland | $102,905 | 1.3% | 3 |
| California | $100,149 | 1.9% | 4 |
| Hawaii | $100,745 | 2.7% | 5 |
| New Hampshire | $99,782 | 0.1% | 6 |
| Washington | $99,389 | 2.1% | 7 |
| Colorado | $97,113 | 1.5% | 8 |
| Connecticut | $96,049 | 1.8% | 9 |
| Utah | $96,658 | 0.5% | 10 |
| Alaska | $95,665 | 7.3% | 11 |
| Virginia | $92,090 | -0.5% | 12 |
| Minnesota | $87,117 | -0.5% | 13 |
| Delaware | $87,534 | 4.5% | 14 |
| New York | $85,820 | 1.6% | 15 |
| Oregon | $85,220 | 3.3% | 16 |
| Illinois | $83,211 | 0.7% | 17 |
| Vermont | $82,730 | -1.0% | 18 |
| Rhode Island | $83,504 | -4.5% | 19 |
| Arizona | $81,486 | 2.4% | 20 |
| Idaho | $81,166 | 5.2% | 21 |
| Nevada | $81,134 | 3.2% | 22 |
| Georgia | $79,991 | 4.1% | 23 |
| Texas | $79,721 | 2.2% | 24 |
| Pennsylvania | $77,545 | 2.0% | 25 |
| Wisconsin | $77,488 | 0.9% | 26 |
| Florida | $77,735 | 3.0% | 27 |
| North Dakota | $77,871 | -1.1% | 28 |
| Maine | $76,442 | 0.7% | 29 |
| Nebraska | $76,376 | -0.5% | 30 |
| Iowa | $75,501 | 2.7% | 31 |
| Kansas | $75,514 | 4.3% | 32 |
| Montana | $75,340 | 3.4% | 33 |
| Wyoming | $75,532 | 1.3% | 34 |
| North Carolina | $73,958 | 1.5% | 35 |
| South Dakota | $76,881 | 4.0% | 36 |
| Ohio | $72,212 | 3.5% | 37 |
| South Carolina | $72,350 | 3.7% | 38 |
| Michigan | $72,389 | 1.6% | 39 |
| Indiana | $71,959 | 0.6% | 40 |
| Tennessee | $71,997 | 3.4% | 41 |
| Missouri | $71,589 | 1.5% | 42 |
| Alabama | $66,659 | 4.1% | 43 |
| Oklahoma | $66,148 | 3.4% | 44 |
| New Mexico | $67,816 | 5.8% | 45 |
| Kentucky | $64,526 | 2.6% | 46 |
| Arkansas | $62,106 | 2.8% | 47 |
| Louisiana | $60,986 | 1.7% | 48 |
| West Virginia | $60,798 | 5.6% | 49 |
| Mississippi | $59,127 | 6.0% | 50 |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates (Data Management System Number: P-7533841)
Regional Economic Disparities Analysis
The median household income by state data reveals profound regional patterns that reflect America’s economic geography. The top 10 highest-earning states are dominated by coastal jurisdictions, with 8 of the top 10 located on either the Atlantic or Pacific seaboards. Massachusetts, New Jersey, and Maryland—the three highest-earning states—all benefit from proximity to major metropolitan areas, highly educated workforces, and concentrations of high-value industries. Massachusetts leverages its world-class universities and thriving biotechnology sector centered in the Boston area. New Jersey benefits from its position between New York City and Philadelphia, hosting pharmaceutical companies, financial firms, and corporate headquarters. Maryland prospers from its proximity to Washington D.C., with substantial employment in federal government, defense contracting, and cybersecurity industries.
The bottom 10 states are predominantly located in the South and Appalachian regions, reflecting historical economic development patterns, lower educational attainment levels, and industry compositions weighted toward lower-wage sectors. Mississippi, West Virginia, Louisiana, and Arkansas—the four lowest-earning states—face persistent economic challenges including rural population distributions, lower rates of college degree attainment, and limited presence of high-paying professional and technical industries. However, several of these states showed strong year-over-year growth rates, with Mississippi posting a remarkable 6.0% increase and West Virginia growing 5.6%, suggesting potential convergence as these economies develop and diversify.
Household Income by Educational Attainment in the US 2025
| Educational Attainment Level | Median Household Income (2024) | Income Difference from High School Graduates | Percent of All Households |
|---|---|---|---|
| Bachelor’s Degree or Higher | $132,700 | +$74,290 (127% higher) | 39.2% |
| Some College or Associate Degree | $76,520 | +$18,110 (31% higher) | 27.8% |
| High School Graduate (No College) | $58,410 | Baseline | 25.4% |
| Less Than High School Diploma | $36,900 | -$21,510 (37% lower) | 7.6% |
Data Source: U.S. Census Bureau, Income in the United States 2024 Report (P60-286, September 2025)
Education as the Primary Income Determinant
Educational attainment represents the single most powerful predictor of household income in America. Households headed by individuals holding a bachelor’s degree or higher earned a median income of $132,700 in 2024, representing more than double the $58,410 earned by households whose head completed only high school. This $74,290 income premium for college graduates has expanded over time, creating an increasingly stratified economic landscape where educational credentials largely determine earning potential and economic security.
The progression across education levels tells a compelling story about the economic value of educational investment. Households headed by someone with some college education or an associate degree earned $76,520, positioning them 31% above high school graduates but still 42% below bachelor’s degree holders. This gap between partial college education and full degree completion underscores that the greatest economic returns accrue to those who complete four-year degrees. Meanwhile, households lacking a high school diploma faced severe economic disadvantage, earning just $36,900—barely 63% of what high school graduates earned and only 28% of what college graduates commanded. Between 2004 and 2024, the education premium intensified, with college graduate earnings growing 6.3% while high school graduate earnings rose only 3.2%, indicating that economic expansion benefits have flowed disproportionately to those with higher education credentials.
Median Household Income by Race and Hispanic Origin in the US 2025
| Race/Ethnicity Category | Median Household Income (2024) | Percent Change from 2023 | Income Gap from National Median |
|---|---|---|---|
| Asian Households | $117,289 | +1.9% | +$35,685 (44% above national median) |
| White, Not Hispanic | $87,572 | +2.3% | +$5,968 (7% above national median) |
| White (All) | $87,015 | +2.4% | +$5,411 (7% above national median) |
| Hispanic Households (Any Race) | $72,574 | +1.5% | -$9,030 (11% below national median) |
| Black Households | $56,706 | +2.2% | -$24,898 (31% below national median) |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates (Appendix Table 3)
Persistent Racial Income Disparities
The distribution of household income across racial and ethnic groups reveals both progress and continuing challenges in achieving economic equity. Asian households maintained their position as the highest-earning demographic group with a median income of $117,289 in 2024, representing 44% above the national median. This reflects continued advancement in educational attainment within Asian American communities, with particularly strong representation in high-paying professional fields including medicine, engineering, technology, and finance. White non-Hispanic households earned a median income of $87,572, positioning them 7% above the national median and benefiting from generational wealth accumulation, higher homeownership rates, and greater access to high-quality educational institutions.
Hispanic households earned a median income of $72,574, placing them 11% below the national median despite experiencing a 1.5% increase from the previous year. The Hispanic income trajectory shows signs of improvement as younger generations achieve higher educational attainment and gain access to better employment opportunities. However, Black households continue facing the most significant economic challenges, with a median income of $56,706—31% below the national median and representing the lowest earnings among major demographic groups. The $30,866 gap between White non-Hispanic and Black households reflects persistent structural inequalities including educational opportunity gaps, occupational segregation, wealth accumulation barriers, residential segregation patterns, and the ongoing effects of historical discrimination that continue shaping economic outcomes across racial lines in American society.
Household Income by Age of Householder in the US 2025
| Age Group of Householder | Median Household Income (2024) | Percent Change from 2023 | Share of All Households |
|---|---|---|---|
| 45 to 64 Years | $100,055 | +2.7% | 32.4% |
| 25 to 44 Years | $92,084 | +2.0% | 35.6% |
| 65 Years and Older | $59,648 | +3.4% | 28.2% |
| Under 25 Years | $46,651 | +1.1% (not statistically significant) | 3.8% |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates (Appendix Table 3)
Age-Based Income Patterns and Economic Life Cycle
The relationship between age and household income follows a predictable life-cycle pattern that reflects career progression, wealth accumulation, and retirement transitions. Households headed by individuals aged 45 to 64 commanded the highest median income at $100,055 in 2024, representing peak earning years when professionals have accumulated substantial work experience, achieved senior positions, and maximized their earning potential. This age cohort experienced a 2.7% income increase, demonstrating continued economic strength among mid-career workers who benefited from tight labor markets and wage growth pressures.
Households with householders aged 25 to 44 earned a median income of $92,084, reflecting younger workers who are establishing careers, starting families, and building financial foundations. Despite being 8% lower than peak earners, this group showed healthy 2.0% growth, suggesting favorable economic conditions for young professionals and family-formation-age workers. In contrast, households headed by individuals 65 years and older earned just $59,648—40% lower than peak earners—as retirement typically brings substantial income reduction despite Social Security benefits, pensions, and investment income. However, this group experienced the strongest growth at 3.4%, driven by cost-of-living adjustments to Social Security, improved private retirement benefits, and the Baby Boom generation entering retirement with better financial preparation than previous cohorts. The youngest householders under age 25 earned only $46,651, reflecting entry-level positions, part-time employment, and students just beginning their careers with limited work experience and educational credentials.
Metropolitan Area Income Rankings in the US 2025
| Metropolitan Area | Median Household Income (2024) | Percent Change from 2023 | National Ranking |
|---|---|---|---|
| San Francisco-Oakland-Fremont, CA | $135,590 | +3.1% | 1 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | $126,244 | +1.0% | 2 |
| Boston-Cambridge-Newton, MA-NH | $117,825 | +3.4% | 3 |
| Seattle-Tacoma-Bellevue, WA | $112,388 | -1.4% | 4 |
| San Diego-Chula Vista-Carlsbad, CA | $109,132 | +2.3% | 5 |
| Denver-Aurora-Centennial, CO | $108,046 | +1.9% | 6 |
| New York-Newark-Jersey City, NY-NJ | $99,852 | +1.9% | 7 |
| Austin-Round Rock-San Marcos, TX | $99,897 | -1.5% | 8 |
| Baltimore-Columbia-Towson, MD | $98,666 | +1.7% | 9 |
| Minneapolis-St. Paul-Bloomington, MN-WI | $97,928 | 0% | 10 |
| Los Angeles-Long Beach-Anaheim, CA | $96,405 | +1.8% | 11 |
| Dallas-Fort Worth-Arlington, TX | $92,733 | +3.7% | 12 |
| Atlanta-Sandy Springs-Roswell, GA | $92,344 | +3.7% | 13 |
| Riverside-San Bernardino-Ontario, CA | $91,013 | +0.7% | 14 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $90,850 | +1.6% | 15 |
| Phoenix-Mesa-Chandler, AZ | $90,133 | +2.2% | 16 |
| Chicago-Naperville-Elgin, IL-IN | $90,770 | +1.3% | 17 |
| Charlotte-Concord-Gastonia, NC-SC | $85,938 | +2.7% | 18 |
| Houston-Pasadena-The Woodlands, TX | $81,417 | -0.5% | 19 |
| St. Louis, MO-IL | $81,679 | +1.4% | 20 |
| Orlando-Kissimmee-Sanford, FL | $81,044 | +1.7% | 21 |
| Miami-Fort Lauderdale-West Palm Beach, FL | $80,625 | +2.7% | 22 |
| Tampa-St. Petersburg-Clearwater, FL | $78,275 | +4.5% | 23 |
| San Antonio-New Braunfels, TX | $78,112 | +3.7% | 24 |
| Detroit-Warren-Dearborn, MI | $76,403 | +2.3% | 25 |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates (Appendix Table 2)
Urban Economic Centers Drive Income Growth
The 25 most populous metropolitan areas demonstrate how urban centers concentrate economic opportunity and higher-paying employment. The San Francisco-Oakland-Fremont metropolitan area leads the nation with a median household income of $135,590, driven by the technology industry epicenter in Silicon Valley, where companies like Apple, Google, Meta, and thousands of startups generate extraordinary compensation packages including substantial equity components. The Washington-Arlington-Alexandria metro area ranks second at $126,244, reflecting high federal government salaries, thriving defense contracting sector, and cybersecurity industry concentration that produces premium wages.
Boston-Cambridge-Newton placed third at $117,825, benefiting from world-leading universities, biotechnology clusters, financial services firms, and healthcare institutions that create abundant high-wage professional opportunities. Among major metropolitan areas, 12 experienced significant income increases between 2023 and 2024, with none recording statistically significant decreases, suggesting broad-based urban economic strength. The lowest-earning major metros include Detroit at $76,403, San Antonio at $78,112, and Tampa at $78,275—though even these regions substantially exceed many state medians and showed solid year-over-year growth ranging from 2.3% to 4.5%, indicating improving economic conditions across America’s largest urban centers.
Regional Income Growth Patterns in the US 2025
| Geographic Region | States Showing Significant Income Growth | Average Growth Rate | States with Declining or Flat Income |
|---|---|---|---|
| Northeast | Massachusetts, New Jersey, Maryland, Delaware, Pennsylvania, New York, Maine | 1.5% to 4.5% | Rhode Island (-4.5%), Vermont (-1.0%), Connecticut, New Hampshire (flat) |
| South | Florida, Georgia, North Carolina, South Carolina, Tennessee, Alabama, Oklahoma, Arkansas, Louisiana, West Virginia, Mississippi | 1.7% to 6.0% | Virginia (-0.5%) |
| Midwest | Ohio, Michigan, Kansas, Iowa, Montana, South Dakota | 1.6% to 4.3% | Minnesota (-0.5%), Missouri, Wisconsin, Indiana, Illinois, North Dakota, Nebraska (flat) |
| West | Alaska, Idaho, Washington, Oregon, Nevada, Arizona, California, New Mexico | 1.9% to 7.3% | Utah, Colorado, Wyoming (flat) |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates
Geographic Income Convergence and Divergence Trends
The year-over-year changes in median household income by state reveal complex patterns of economic convergence and divergence across American regions. 29 states experienced statistically significant income growth between 2023 and 2024, while 21 states plus the District of Columbia and Puerto Rico showed no significant change, and remarkably, zero states recorded significant income declines. This widespread growth pattern suggests generally favorable economic conditions supporting household income gains across most of the country during this period.
Several lower-income states demonstrated particularly strong growth rates, suggesting potential convergence as their economies develop. Alaska led all states with a remarkable 7.3% increase, followed by Mississippi at 6.0%, New Mexico at 5.8%, West Virginia at 5.6%, and Idaho at 5.2%. These growth rates substantially exceeded the 2.0% national average, indicating that some historically lower-income states are experiencing accelerated economic development. However, this convergence pattern is not universal—several high-income states also posted solid growth, including Delaware at 4.5% and Alaska at 7.3%, while some middle-income states remained stagnant. The only state showing concerning trends was Rhode Island, which experienced a 4.5% decline, though this appears to be a statistical anomaly rather than part of a broader regional pattern.
State Economic Characteristics Influencing Household Income in the US 2025
| State Characteristics | High-Income State Examples | Low-Income State Examples | Impact on Household Income |
|---|---|---|---|
| Industry Composition | Technology (CA, WA, MA), Finance (NY, CT), Government (MD, VA, DC) | Manufacturing (MS, AR), Agriculture (WV), Resource extraction (LA) | High-value industries generate 30-50% higher wages than traditional manufacturing and resource sectors |
| Educational Attainment | MA (48% bachelor’s degree+), CO (47%), MD (46%) | WV (23% bachelor’s degree+), MS (25%), AR (26%) | Each 10% increase in bachelor’s degree attainment correlates with approximately $8,000-$12,000 higher median income |
| Urbanization Rate | NJ (94% urban), CA (95%), MA (92%) | MS (49% urban), ME (39%), WV (48%) | Urban states average $15,000-$25,000 higher median incomes due to job diversity and wage competition |
| Cost of Living | HI (highest), CA (2nd), MA (4th) | MS (lowest), AR (3rd lowest), WV (5th lowest) | High-cost states require 25-40% higher nominal incomes to achieve equivalent purchasing power |
Data Source: U.S. Census Bureau, American Community Survey 2024; Bureau of Labor Statistics Regional Price Parities
Structural Factors Determining State Income Levels
The vast differences in median household income across states reflect fundamental structural characteristics that shape regional economies and determine earning potential. Industry composition stands as perhaps the most critical factor—states hosting concentrations of high-value industries including technology, finance, biotechnology, professional services, and federal government operations consistently generate higher household incomes. California’s $100,149 median income directly correlates with Silicon Valley technology companies, Los Angeles entertainment industry, and San Francisco financial district, while Massachusetts’ $104,828 median reflects Boston’s biotechnology cluster, financial services firms, and prestigious universities generating research and development employment.
Educational attainment represents another powerful income determinant, with states boasting higher percentages of college-educated residents commanding substantially higher median incomes. Massachusetts, where 48% of adults hold bachelor’s degrees or higher, leads the nation in both education and income, while Mississippi, where only 25% have college degrees, ranks last in income. This relationship operates through multiple channels—educated populations attract high-wage industries, generate entrepreneurship and innovation, and create virtuous cycles of economic development. Urbanization also significantly impacts state income levels, as metropolitan areas concentrate economic opportunities, enable specialization, foster competition for talent that drives wages upward, and provide diverse employment options that allow workers to maximize their earning potential based on skills and education.
Income Inequality Measures Across States in the US 2025
| State | Gini Index (2024) | Gini Index (2023) | Change in Inequality | Inequality Ranking |
|---|---|---|---|---|
| New York | 0.519 | 0.516 | No significant change | Highest inequality |
| District of Columbia | 0.524 | 0.516 | No significant change | Highest inequality |
| California | 0.485 | 0.487 | No significant change | High inequality |
| Connecticut | 0.499 | 0.495 | No significant change | High inequality |
| Louisiana | 0.492 | 0.497 | No significant change | High inequality |
| Massachusetts | 0.482 | 0.488 | Decreased (-1.2%) | Moderate inequality |
| United States (Overall) | 0.481 | 0.483 | Decreased (-0.4%) | Baseline |
| New Jersey | 0.471 | 0.479 | Decreased (-1.7%) | Moderate inequality |
| Utah | 0.422 | 0.423 | No significant change | Lowest inequality |
Data Source: U.S. Census Bureau, American Community Survey 2024 1-Year Estimates (Appendix Table 1)
Understanding Income Inequality Patterns
The Gini index—a statistical measure ranging from 0.0 (perfect equality) to 1.0 (perfect inequality)—provides crucial insights into how income is distributed within states beyond simple median figures. The U.S. national Gini index stood at 0.481 in 2024, showing a slight decrease from 0.483 in 2023, suggesting marginally improved income distribution across American households. However, state-level Gini indices vary substantially, revealing that some jurisdictions exhibit far more unequal income distributions than others.
New York and the District of Columbia tied for the highest inequality levels with Gini indices exceeding 0.519, reflecting enormous income gaps between wealthy finance and government professionals and lower-income service workers. California, Connecticut, and Louisiana also demonstrated high inequality, though Louisiana’s high Gini index reflects different dynamics—while coastal high-inequality states feature very high earners alongside moderate-income workers, Louisiana exhibits a concentration of low-income households with fewer middle-class opportunities. Nine states experienced statistically significant decreases in inequality during 2024, including Massachusetts (-1.2%), New Jersey (-1.7%), Ohio (-1.4%), and Oregon (-1.7%), suggesting improving income distribution in these jurisdictions. Utah maintained the nation’s lowest inequality at 0.422, reflecting its more homogeneous economic structure, strong middle-class employment base, and relatively compressed income distribution compared to coastal states with extreme high earners.
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