September 22nd 2025.
The distribution of wealth in the United States is constantly shifting, with the income gap continuing to widen despite a slight increase in median household incomes. According to data from the Census Bureau in 2024, the average median household income in the US was $83,730, only slightly higher than the previous year's $82,690. This shows that while there is progress, it is slow and uneven.
The national average may seem promising, but it masks the significant differences between states. In states like Massachusetts, New Jersey, Maryland, and California, the middle class is defined by much higher income thresholds compared to lower-income states, where the same amount of money can buy much more due to lower living costs.
These income disparities are influenced by broader economic factors. While overall income may be increasing, inflation and rising costs in certain industries can greatly reduce the purchasing power of individuals and weaken the economy of a state. Despite some efforts to control it, inflation remains a concern in producer prices and consumer sectors.
The cost of living also plays a significant role in determining the financial well-being of a household. A family that may seem financially stable in one state may struggle in another due to the difference in living expenses. Furthermore, the gap in wealth is also driven by asset ownership. For example, homeowners may see a significant increase in their net worth due to the rise in home equity, while renters may fall further behind.
In lower-income states, the lack of diversification in industries can also contribute to income differences. Reliance on industries such as mining, agriculture, or low-wage service sectors can make economies more vulnerable to economic shocks.
States like Mississippi, West Virginia, and Louisiana have a median household income that is 20-27% lower than the national average, and their poverty rates are often well above the national average. For instance, Mississippi has the lowest median household income at just over $59,000 in 2024, with around 18% of its population living in poverty - almost double the national rate. These numbers are more than just statistics; they represent the harsh reality of limited access to healthcare, inadequate infrastructure, lower education levels, and fewer well-paying job opportunities, all of which contribute to a cycle of hardship.
To gain a better understanding of how these income differences vary across the country, Stacker examined the economies of all 50 states using data from the Census Bureau's 2024 1-Year American Community Survey. This allowed us to rank the poorest states based on their median household income, as well as other factors such as median earnings, employment rates, health insurance coverage, and poverty levels.
It is important to note that the data on median earnings was broken down to highlight the gender pay gap between men and women. However, it is worth mentioning that the Census Bureau collects data based on a binary understanding of sex and gender, which may not fully represent the diversity of gender identities.
Now, let's take a closer look at the poorest states in the US, starting with Florida. With a median household income of $77,735, it ranks at number 25 on our list. However, it also has a significant number of households earning less than $10,000 (473,368) and those earning over $200,000 (1,089,305). The median earnings for workers in Florida is $42,321, and the state has a poverty rate of 8.4% and a relatively high percentage of households with health insurance at 89.1%.
Next up is Pennsylvania, with a median household income of $77,545. It also has a large number of households earning less than $10,000 (270,326) and over $200,000 (639,349). The median earnings for workers in Pennsylvania are slightly higher than Florida at $46,804, and the state has a lower poverty rate of 7.8%. It also has a higher percentage of households with health insurance at 94.2%.
Wisconsin follows closely behind with a median household income of $77,488. It has a smaller number of households earning less than $10,000 (110,181) and over $200,000 (239,382). The median earnings for workers in Wisconsin are slightly higher than Pennsylvania at $47,337, and the state has a poverty rate of 6.4%. It also has a high percentage of households with health insurance at 94.7%.
In South Dakota, the median household income is $76,881. It has a much smaller number of households earning less than $10,000 (17,935) and over $200,000 (33,376). The median earnings for workers in South Dakota are $45,579, and the state has a poverty rate of 6.6%. It also has a relatively high percentage of households with health insurance at 91.9%.
Maine has a median household income of $76,442. It has a small number of households earning less than $10,000 (24,519) and a relatively large number of households earning over $200,000 (63,672). The median earnings for workers in Maine are $46,556, and the state has a poverty rate of 6.2%. It also has a high percentage of households with health insurance at 94.5%.
In Nebraska, the median household income is $76,376. It has a higher number of households earning less than $10,000 (35,439) and over $200,000 (73,437). The median earnings for workers in Nebraska are $44,461, and the state has a poverty rate of 7.4%. It also has a relatively high percentage of households with health insurance at 92.9%.
Wyoming has a median household income of $75,532. It has a small number of households earning less than $10,000 (13,192) and a relatively large number of households earning over $200,000 (21,551). The median earnings for workers in Wyoming are $42,185, and the state has a poverty rate of 6.4%. It also has a high percentage of households with health insurance at 89.7%.
Kansas has a median household income of $75,514. It has a higher number of households earning less than $10,000 (52,214) and over $200,000 (120,201). The median earnings for workers in Kansas are $44,119, and the state has a poverty rate of 6.9%. It also has a relatively high percentage of households with health insurance at 91.5%.
Iowa follows closely behind with a median household income of $75,501. It has a higher number of households earning less than $10,000 (54,185) and over $200,000 (111,270). The median earnings for workers in Iowa are slightly higher than Kansas at $44,656, and the state has a poverty rate of 7.4%. It also has a high percentage of households with health insurance at 94.6%.
In Montana, the median household income is $75,340. It has a small number of households earning less than $10,000 (17,748) and a relatively large number of households earning over $200,000 (43,546). The median earnings for workers in Montana are $41,741, and the state has a poverty rate of 6.0%. It also has a relatively high percentage of households with health insurance at 91.2%.
Finally, we have North Carolina with a median household income of $73,958. It has a significantly higher number of households earning less than $10,000 (233,418) and over $200,000 (498,662). The median earnings for workers in North Carolina are $43,948, and the state has a poverty rate of 8.8%. It also has a relatively high percentage of households with health insurance at 91.4%.
It is clear that there are significant income disparities across the United States, with some states struggling more than others. While the national average may seem promising, it is important to look at the bigger picture and address the underlying economic factors that contribute to these differences.
The economic landscape of the United States is constantly changing, and currently, there is a stark contrast in wealth, with income gaps growing wider while the median household income slowly rises. According to the 2024 data from the Census Bureau, the average median household income in the U.S. was $83,730, only a slight increase from the previous year's $82,690. This shows that while there is progress, it is happening at a slow pace.
However, this national average doesn't tell the whole story as there are significant disparities between states. States like Massachusetts, New Jersey, Maryland, and California have much higher thresholds for what is considered middle class, while in lower-income states, the same amount of money doesn't stretch as far due to the higher cost of living. This is a result of broader economic events that are shaping these income differences.
This divergence in income levels highlights that while there is a general increase in income, it is being offset by inflation, rising costs, and varying performance in different industries. This means that while people may be making more money, what they can actually afford to buy is decreasing, and the strength of state economies is also being affected. Even though inflation has been somewhat controlled, it is still higher than desired in producer prices and key consumer sectors.
It's important to note that the cost of living can vary greatly from state to state. This means that a household that may appear to be well-off in one state could be struggling in another due to the high cost of living. Additionally, wealth gaps are becoming increasingly driven by asset ownership, with homeowners seeing their net worth increase due to the rise in home equity, while renters are falling further behind. In lower-income states, lack of diversification in industries such as extractive, agricultural, or low-wage service sectors, limits their resilience to economic shocks.
States like Mississippi, West Virginia, and Louisiana have incomes that are 20-27% below the national median, and their poverty rates are often well above the national average. For example, Mississippi has the lowest median household income of just over $59,000 in 2024, and around 18% of its population lives in poverty, which is almost double the national rate. These numbers are not just statistics, they have a real impact on people's lives, limiting their access to healthcare, infrastructure, education, and well-paying jobs, ultimately creating a cycle of hardship.
To get a better understanding of how these numbers vary across the country, Stacker analyzed the economies of all 50 states, using data from the 2024 1-Year American Community Survey by the Census Bureau to rank the poorest states based on median household income. The review also includes statistics on median earnings, employment rate, health insurance coverage, and poverty level.
It's worth noting that the data on median earnings is broken down to highlight the discrepancies between men and women. However, the Census Bureau collects data with a binary understanding of sex and gender, not considering other gender identities, potentially conflating sex and gender.
Now let's take a closer look at the 25 poorest states, starting with Florida, where the median household income is $77,735. However, this number doesn't paint the full picture, as there are 473,368 households earning less than $10,000 and 1,089,305 households earning over $200,000. The median earnings for workers in Florida is $42,321, and 8.4% of families have an income below the poverty level, while 89.1% of households have health insurance coverage.
Moving on to Pennsylvania, where the median household income is slightly lower at $77,545. This state also has a significant number of households earning less than $10,000 (270,326) and over $200,000 (639,349). The median earnings for workers are higher than in Florida, at $46,804, and only 7.8% of families have an income below the poverty level. However, the percentage of households with health insurance coverage is higher at 94.2%.
In Wisconsin, the median household income is $77,488, and there are 110,181 households earning less than $10,000 and 239,382 earning over $200,000. The median earnings for workers are also slightly higher than in Pennsylvania, at $47,337, and only 6.4% of families have an income below the poverty level. The percentage of households with health insurance coverage is even higher than in Pennsylvania, at 94.7%.
In South Dakota, the median household income is $76,881, and there are 17,935 households earning less than $10,000 and 33,376 earning over $200,000. The median earnings for workers are $45,579, and 6.6% of families have an income below the poverty level. While the percentage of households with health insurance coverage is slightly lower at 91.9%, it is still relatively high compared to other states.
Next, we have Maine, with a median household income of $76,442. This state has 24,519 households earning less than $10,000 and 63,672 earning over $200,000. The median earnings for workers are $46,556, and only 6.2% of families have an income below the poverty level. The percentage of households with health insurance coverage is also high at 94.5%.
In Nebraska, the median household income is $76,376, and there are 35,439 households earning less than $10,000 and 73,437 earning over $200,000. The median earnings for workers are $44,461, and 7.4% of families have an income below the poverty level. The percentage of households with health insurance coverage is 92.9%.
Wyoming has a median household income of $75,532, with 13,192 households earning less than $10,000 and 21,551 earning over $200,000. The median earnings for workers are $42,185, and only 6.4% of families have an income below the poverty level. The percentage of households with health insurance coverage is 89.7%.
In Kansas, the median household income is $75,514, and there are 52,214 households earning less than $10,000 and 120,201 earning over $200,000. The median earnings for workers are $44,119, and 6.9% of families have an income below the poverty level. The percentage of households with health insurance coverage is 91.5%.
Iowa has a median household income of $75,501, with 54,185 households earning less than $10,000 and 111,270 earning over $200,000. The median earnings for workers are $44,656, and 7.4% of families have an income below the poverty level. The percentage of households with health insurance coverage is even higher than in Nebraska, at 94.6%.
Montana's median household income is $75,340, and there are 17,748 households earning less than $10,000 and 43,546 earning over $200,000. The median earnings for workers are $41,741, and only 6.0% of families have an income below the poverty level. The percentage of households with health insurance coverage is 91.2%.
In North Carolina, the median household income is $73,958, and there are 233,418 households earning less than $10,000 and 498,662 earning over $200,000. The median earnings for workers are $43,948, and 8.8% of families have an income below the poverty level. The percentage of households with health insurance coverage is 91.4%.
In Michigan, the median household income is $72,389, and there are 233,459 households earning less than $10,000 and 388,927 earning over $200,000. The median earnings for workers are $43,195, and 9.2% of families have an income below the poverty level. The percentage of households with health insurance coverage is 94.9%.
These numbers paint a clear picture of the economic disparities between states, with factors such as cost of living, industry performance, and asset ownership all playing a role in shaping these differences. It's important to continue exploring and understanding these statistics to work towards creating a more balanced and equitable economy for all states.
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