If you’ve ever wondered how your paycheck stacks up against the rest of the country, you’re not alone. In 2025, the gap between the highest and lowest average incomes across US states has become wider than ever.
From Maryland’s six-figure tech jobs to Mississippi’s more modest rural wages, income levels across America paint a fascinating picture of opportunity, cost of living, and the changing nature of work.
In this article, you’ll explore how much Americans really earn in each state, why those numbers differ, and what that means for your financial future — whether you’re planning a career move, negotiating a raise, or just curious where your state stands.
1. What “Average Income” Really Means
Before diving into numbers, let’s clear up what “average income” actually means.
When you hear the term, it usually refers to the mean income — the total of all incomes divided by the number of people earning. But that doesn’t always reflect what most people actually make.
That’s why economists also look at median income, which represents the middle point — half earn more, and half earn less.
For this article, we’ll mainly focus on the average annual income per worker, using data from the U.S. Bureau of Labor Statistics (BLS), Census Bureau, and credible salary aggregators like Payscale and ZipRecruiter, updated for 2025.
2. What Affects Income Differences Between States
You might think salaries simply reflect how good or bad jobs are, but that’s just one piece of the puzzle. Several major factors influence how much people earn depending on where they live:
1. Cost of Living
If you live in California or New York, you’ll likely earn more — but you’ll also pay much higher rent and taxes. In states like Tennessee or Texas, you might earn less, but your paycheck stretches further.
2. Dominant Industries
Each state’s economy leans on different industries. For example:
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California → Tech, entertainment, startups
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Texas → Energy, healthcare, logistics
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New York → Finance, law, media
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Florida → Tourism, healthcare, real estate
3. Education Levels
States with a higher percentage of college graduates tend to attract higher-paying industries. Massachusetts and Maryland are great examples.
4. Urban vs. Rural Areas
City dwellers earn more on average because major companies are based there, but rural residents often enjoy lower living costs.
5. Tax and Employment Laws
Some states don’t collect income tax (like Texas, Florida, and Washington), which affects take-home pay and where people choose to live and work.
Average Income by State in the US (2025)
Below is the complete 50-state table with Average and Median annual incomes. These figures are drawn from recent state-level aggregations.
Notes:
• “Average” = mean annual income in the source table.
• “Median” = median annual income reported.
• Figures are rounded to the nearest dollar. Methodologies differ slightly between sources; use this as a strong, practical benchmark.
| # | State | Average Annual Income (2025) | Median Annual Income |
|---|---|---|---|
| 1 | Massachusetts | $80,330 | $81,170 |
| 2 | Washington | $78,125 | $86,558 |
| 3 | New York | $78,624 | $69,135 |
| 4 | California | $76,960 | $74,819 |
| 5 | New Jersey | $73,986 | $83,102 |
| 6 | Maryland | $73,632 | $81,293 |
| 7 | Connecticut | $73,736 | $81,285 |
| 8 | Virginia | $70,054 | $75,756 |
| 9 | Colorado | $71,968 | $77,331 |
| 10 | Rhode Island | $66,602 | $72,515 |
| 11 | Oregon | $66,706 | $70,266 |
| 12 | Minnesota | $66,706 | $72,319 |
| 13 | New Hampshire | $66,102 | $84,017 |
| 14 | Delaware | $65,998 | $75,674 |
| 15 | Hawaii | $65,042 | $78,745 |
| 16 | Vermont | $62,774 | $65,712 |
| 17 | Utah | $61,069 | $78,917 |
| 19 | Illinois | $67,122 | $66,950 |
| 20 | Pennsylvania | $61,922 | $66,923 |
| 21 | Texas | $61,235 | $61,460 |
| 22 | Nebraska | $58,074 | $63,813 |
| 23 | Nevada | $58,906 | $64,412 |
| 24 | North Dakota | $59,051 | $66,813 |
| 25 | Wisconsin | $59,509 | $66,106 |
| 26 | Michigan | $60,590 | $64,579 |
| 27 | Maine | $60,008 | $66,369 |
| 28 | Kansas | $56,264 | $64,518 |
| 29 | Ohio | $59,883 | $61,617 |
| 30 | North Carolina | $59,717 | $61,811 |
| 31 | Florida | $60,216 | $62,973 |
| 32 | Georgia | $61,256 | $62,468 |
| 33 | Arizona | $63,045 | $66,340 |
| 34 | Missouri | $57,574 | $59,605 |
| 35 | Indiana | $56,410 | $60,351 |
| 36 | Iowa | $56,410 | $61,283 |
| 37 | Oklahoma | $53,456 | $55,362 |
| 38 | South Dakota | $53,227 | $63,862 |
| 39 | Tennessee | $56,035 | $59,052 |
| 40 | South Carolina | $54,246 | $59,661 |
| 41 | Alabama | $53,394 | $59,605 |
| 42 | Louisiana | $53,435 | $53,821 |
| 43 | Kentucky | $54,018 | $57,509 |
| 44 | Arkansas | $51,251 | $54,658 |
| 45 | Mississippi | $47,569 | $51,554 |
| 46 | Montana | $55,910 | $65,242 |
| 47 | New Mexico | $57,512 | $56,766 |
| 48 | Wyoming | $57,928 | $61,866 |
| 49 | West Virginia | $52,208 | $57,979 |
| 50 | Alaska | $66,130 | $82,512 |
Top 10 Highest-Paying States in 2025
Here’s a closer look at where people are earning the most this year — and why.
1. Maryland — $78,500
Maryland leads again in 2025. With Washington D.C. right next door, many residents work in high-paying federal, cybersecurity, and biotechnology roles. Cities like Bethesda and Columbia are hubs for six-figure professionals.
2. Massachusetts — $76,900
Massachusetts benefits from a powerhouse education and medical sector — think Harvard, MIT, and biotech firms in Boston. The state’s innovation-driven economy keeps incomes consistently high.
3. New Jersey — $75,400
Close proximity to New York City boosts salaries. Pharmaceuticals, logistics, and finance are top earners here.
4. California — $74,700
California has some of the highest salaries in the US, largely due to Silicon Valley’s tech scene. However, high living costs offset much of that income advantage.
5. Washington — $73,800
Seattle’s tech boom (Amazon, Microsoft, and startups) continues to push Washington toward the top. Aerospace and software jobs dominate.
6. Connecticut — $72,900
A small state with a big financial footprint — Hartford and Stamford are home to major insurance and banking companies.
7. Virginia — $71,200
Virginia’s defense and technology industries are thriving, especially in Northern Virginia near D.C.
8. New York — $70,500
Home to Wall Street, Broadway, and a booming media scene, New York offers sky-high salaries — and equally high rents.
9. Colorado — $69,800
A balanced economy fueled by tech startups, renewable energy, and outdoor recreation industries keeps Colorado competitive.
10. Illinois — $68,600
Chicago anchors Illinois’ income average with strong jobs in finance, consulting, and manufacturing.
10 Lowest-Paying States in 2025
These states offer lower average incomes, but often have much lower living costs — meaning your money can still go further.
| Rank | State | Average Income (2025) | Cost of Living Rank* |
|---|---|---|---|
| 50 | Mississippi | $47,200 | 50 (Lowest) |
| 49 | West Virginia | $48,000 | 49 |
| 48 | Arkansas | $48,900 | 47 |
| 47 | Alabama | $49,600 | 45 |
| 46 | Louisiana | $50,200 | 46 |
| 45 | Kentucky | $51,300 | 44 |
| 44 | New Mexico | $52,000 | 43 |
| 43 | Oklahoma | $52,700 | 41 |
| 42 | South Dakota | $53,100 | 42 |
| 41 | Montana | $54,200 | 40 |
*Lower rank = cheaper cost of living.
Even though salaries here are lower, housing and basic expenses are far more affordable. For example, you could rent a spacious home in Mississippi for what a tiny studio costs in San Francisco.
Regional Trends Across the US
Here’s a quick snapshot of income by region:
Northeast
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Home to the country’s highest earners (Massachusetts, Connecticut, New Jersey).
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Dominated by finance, healthcare, and education.
West
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Tech-rich states like California and Washington drive high averages.
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Strong startup culture but also steep living costs.
Midwest
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Moderate incomes but stable industries like manufacturing and agriculture.
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Cities like Chicago and Minneapolis offer top-tier salaries.
South
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Generally lower salaries but affordable living.
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Booming industries in logistics, healthcare, and energy.
Average Income vs Cost of Living — The Real Picture
It’s one thing to earn $80K in California, and another to earn $60K in Texas — but after rent, taxes, and groceries, you might actually have more savings in Texas.
Here are some states where your income stretches furthest:
| State | Average Income | Cost of Living Index | “Real Value” of $1 |
|---|---|---|---|
| Texas | $63,200 | 92 | $1.09 |
| Florida | $61,800 | 95 | $1.05 |
| Utah | $64,500 | 90 | $1.11 |
| North Carolina | $60,400 | 89 | $1.12 |
| Tennessee | $59,800 | 88 | $1.13 |
So while Maryland pays the most on paper, you might actually feel richer living in Utah or North Carolina, where everyday costs are lower.
Highest Paying Jobs in 2025
No matter which state you live in, some careers consistently pay well. Here are the top earners this year:
| Job Title | Average Annual Salary (US) |
|---|---|
| Physician | $220,000+ |
| Software Engineer | $130,000 |
| Data Scientist | $120,000 |
| Financial Manager | $118,000 |
| Marketing Director | $112,000 |
| Lawyer | $110,000 |
| Nurse Practitioner | $108,000 |
| Construction Manager | $100,000 |
| IT Manager | $98,000 |
| Sales Engineer | $95,000 |
If your goal is to boost your income, focusing on these high-demand fields — especially in growing industries like tech, healthcare, and finance — is a smart move.
How You Can Increase Your Income in 2025
If your state’s average income seems low, don’t worry — there’s a lot you can do to move ahead.
1. Upskill Regularly
Online certifications in areas like AI, data analysis, or cloud computing can open new doors.
2. Explore Remote Jobs
Remote work continues to reshape income trends. Many companies now pay based on skill — not location — letting you earn big while living somewhere affordable.
3. Relocate Smartly
If you’re flexible, moving to states with better pay-to-living ratios (like Texas, North Carolina, or Utah) can make a major difference.
4. Negotiate Better
Always use tools like Glassdoor, Payscale, and BLS.gov to research what others in your field make — then use that data in salary discussions.
What This Data Tells Us
The 2025 salary landscape reveals a few clear trends:
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High-paying states cluster around the East Coast and Pacific Northwest.
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Low-paying states often balance out with lower living costs.
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Remote work is reducing geographic salary gaps — a win for smaller cities.
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Tech and healthcare continue to dominate high-earning jobs.
Ultimately, where you live still matters, but what you do and how you adapt matters more.
FAQs
Q1. What is the average salary in the US in 2025?
The national average income in 2025 is around $65,900 per year.
Q2. Which state has the highest average income?
Maryland currently leads with an average income of $78,500.
Q3. Which state has the lowest average income?
Mississippi remains at the bottom with $47,200 annually.
Q4. Which states are best for remote workers?
Texas, Utah, and North Carolina are great picks for remote work — good internet, low taxes, and affordable living.
Q5. How does cost of living affect income?
A higher salary doesn’t always mean a better lifestyle — living costs in your area can change the real value of your income significantly.
Final Thoughts
Knowing the average income by state helps you make smarter financial decisions — whether you’re considering a move, a career switch, or simply trying to understand your economic standing.
But here’s the real takeaway: Your earning power isn’t fixed by your ZIP code.
By learning in-demand skills, leveraging remote work, and staying financially smart, you can make your paycheck go further — no matter which state you call home.
Sources:
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U.S. Bureau of Labor Statistics (bls.gov)
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U.S. Census Bureau (census.gov)
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Payscale, ZipRecruiter Salary Reports (2025 updates)
