Top 15 US states with the highest income

June 7, 2026 - 01:05

A recent WalletHub analysis of income levels across the United States has revealed a surprising leader. While states like New York, California, and Florida are often associated with massive wealth and billionaire residents, they were all outperformed by Virginia. The study ranked the Old Dominion state as the number one location for high income, factoring in median household earnings, average wages, and income growth over time.

Virginia's top spot is largely driven by its proximity to Washington, D.C., and a strong concentration of federal contractors, defense firms, and tech companies in the Northern Virginia corridor. The state also benefits from a relatively high cost of living adjustment compared to the Northeast, meaning residents keep more of their paychecks. Following Virginia, the top five included Massachusetts, New Jersey, Connecticut, and Maryland. These states share a pattern of high education levels and a dense presence of professional services, finance, and technology industries.

New York, despite hosting Wall Street and a massive finance sector, landed in the middle of the pack due to its extreme income inequality and high living costs. California, home to Silicon Valley and Hollywood, also fell short of the top tier, ranking behind states with more balanced economies. Florida, known for its lack of state income tax, did not crack the top ten, suggesting that tax policy alone does not determine overall income levels. The bottom of the list was dominated by states like Mississippi, West Virginia, and Arkansas, where lower education attainment and a reliance on lower-wage industries continue to drag down average earnings.