According to the latest US Census Bureau data, income growth in the US has been mostly flat, but some states have posted significant gains.
Overall, median household income has increased only slightly since 2019, from $69,639 to $69,717, measured in inflation-adjusted dollars in 2021. Data from 2020 are: omitted from the report, partly due to the interruption of data collection during the pandemic.
In terms of income growth, 27 states and DC have either fallen or been essentially flat since 2019.
But in 25 states and territories, incomes are growing. The following 10 states had the highest percentage increases:
- Vermont: 8.5%
- New Hampshire: 7.1%
- Arizona: 5%
- South Dakota: 4.8%
- Montana: 4.4%
- Maine: 3.7%
- Idaho: 2.8%
- Indiana: 2.8%
- Pennsylvania: 2.5%
- North Carolina: 2%
Vermont came out on top overall, with median household income rising from $66,766 to $72,431 in 2021. DC was the worst place of all, with median income falling 7.9 % – from $97,781 to $90,088.
The Census Bureau report doesn’t suggest why certain states are better than others. However, income growth may be partly related to pandemic migration patterns out of urban centers in states like California and New York.
Aside from Pennsylvania, the states with the highest income growth also experienced some of the highest population inflows in 2021, According to data from the Pew Research Center.
Remember that income varies greatly depending on where you live. For example, Maryland has a median household income in 2021 of $90,203, nearly double that of the lowest-ranked Mississippi, where the median household income is $48,716.
Here’s a breakdown of median salaries by state:
