According to a 2024 WalletHub report, Virginia and West Virginia have a much wider disparity in how far their money goes than you might think.
Virginians have the highest average income in the country.
People in neighboring West Virginia have the lowest income.
Income Disparities
To determine which states have the best and worst income in the country, WalletHub calculated the following three metrics in each state and the District of Columbia:
- Average annual income of the top 5%
- Average annual income of the bottom 20%
- Median annual income for all of a state’s residents
They adjusted all numbers for the cost of living in each state to make the data more equitable.
Cassandra Happe, an analyst at WalletHub, explains why they chose to structure their study this way.
“The highest-earning 10% of individuals in the United States earn over 12 times more than those in the lowest-earning 10%, based on the latest Census data,” according to Hope.
“By measuring the income of various percentiles against a state’s median income, we can better identify where income disparities are more prevalent, which could help us better understand why residents of certain states struggle more to make ends meet.”
Virginia’s High Income
Virginia has the highest household income. When adjusted for living expenses, the top 5% of Virginia’s earners earn $518,296 per year.
According to the Federal Reserve, Virginia has a median annual income of $89,393, which is significantly higher than the national median income of $74,600.
However, $89,393 is not the highest median annual income in the nation.
Excluding the District of Columbia, which has a median income of $162,265, Hawaii takes the top spot, with a median annual income of $141,832.
In contrast, the bottom 20% of Virginians earn $18,694 per year.
Many Virginians work in high-paying industries such as technology, government, and business. This contributes to the state’s overall income, allowing many people to earn a good living.
The state also benefits from its proximity to Washington, DC. Many Virginians work in federal government jobs, which often pay well and provide benefits.
West Virginia’s Low Income
Take a short trip to the west, and West Virginians face a completely different financial situation.
West Virginia’s median household income is $52,719. This is not the lowest annual median income—Mississippi has that unfortunate distinction at $46,880—but it is significantly lower than many other states.
When adjusted for living expenses, West Virginia’s top 5% earn an average annual income of “only” $345,239. The bottom 20% of West Virginians earn a mere $12,477 per year.
Much of West Virginia’s economy is based on industries such as coal mining and other natural resource jobs.
Over time, these jobs have either declined or failed to provide wages that are commensurate with inflation. This has left many West Virginia families struggling to make ends meet.
Factors Influencing Income Differences
There are several reasons why Virginia and West Virginia have such different income levels. One important factor is the types of industries that are prevalent in each state.
Virginia has a diverse range of industries, including technology, finance, and government. These industries tend to pay higher wages.
Another factor is education and job training. Many Virginians have access to higher education and career training programs. This helps them qualify for higher-paying jobs.
In contrast, West Virginia offers fewer opportunities for higher education and job training.
This disparity can make it difficult for West Virginians to advance to higher-paying careers, affecting the state’s overall income.
Full State Rankings
Are you curious about where other states rank in terms of income?
Hover your mouse over the interactive map below to see how much or how little they earn in comparison to the rest of the nation.
WalletHub’s complete breakdown, including specific rankings, is provided below.
| Overall Rank | State | Total Score | Average Annual Income of Top 5% (Adjusted for COLI) | Median Annual Income (Adjusted for COLI) | Average Annual Income of Bottom 20% (Adjusted for COLI) |
|---|---|---|---|---|---|
| 1 | Virginia | 69.59 | $518,296 | $89,393 | $18,694 |
| 2 | New Jersey | 68.85 | $505,621 | $117,847 | $16,445 |
| 3 | New York | 67.60 | $553,436 | $91,366 | $13,301 |
| 4 | Connecticut | 67.42 | $518,757 | $114,156 | $14,576 |
| 5 | Washington | 62.29 | $474,067 | $103,748 | $18,223 |
| 6 | Utah | 61.60 | $448,195 | $89,786 | $22,491 |
| 7 | Illinois | 59.64 | $504,800 | $78,304 | $16,192 |
| 8 | Minnesota | 59.48 | $464,981 | $86,364 | $19,797 |
| 9 | Colorado | 57.55 | $456,603 | $97,301 | $18,451 |
| 10 | Massachusetts | 57.39 | $466,208 | $127,760 | $13,689 |
| 11 | California | 54.59 | $454,829 | $123,988 | $13,949 |
| 12 | Texas | 54.05 | $481,483 | $70,513 | $16,802 |
| 13 | Georgia | 53.97 | $487,870 | $66,612 | $16,472 |
| 14 | Maryland | 53.78 | $427,135 | $124,693 | $16,647 |
| 15 | District of Columbia | 52.88 | $450,892 | $162,265 | $9,011 |
| 16 | Florida | 48.63 | $470,308 | $68,818 | $15,375 |
| 17 | New Hampshire | 47.51 | $400,343 | $110,205 | $18,075 |
| 18 | Pennsylvania | 45.29 | $445,261 | $74,711 | $15,801 |
| 19 | Michigan | 45.08 | $446,114 | $62,446 | $17,019 |
| 20 | Missouri | 44.11 | $446,069 | $59,715 | $16,821 |
| 21 | North Carolina | 43.97 | $450,592 | $63,025 | $15,836 |
| 22 | Tennessee | 43.46 | $453,539 | $59,077 | $15,679 |
| 23 | Arizona | 42.32 | $424,913 | $74,375 | $16,604 |
| 24 | Kansas | 41.80 | $423,517 | $68,489 | $17,176 |
| 25 | Nebraska | 41.47 | $416,325 | $72,384 | $17,380 |
| 26 | Ohio | 41.43 | $436,922 | $61,904 | $16,188 |
| 27 | Delaware | 40.97 | $402,989 | $87,173 | $16,930 |
| 28 | Idaho | 40.09 | $403,737 | $70,041 | $18,372 |
| 29 | Wisconsin | 39.59 | $402,256 | $72,602 | $17,973 |
| 30 | Iowa | 36.60 | $395,093 | $68,974 | $17,621 |
| 31 | South Dakota | 35.70 | $393,809 | $69,266 | $17,252 |
| 32 | Indiana | 34.70 | $399,270 | $64,170 | $16,670 |
| 33 | Nevada | 34.52 | $401,062 | $80,366 | $14,472 |
| 34 | Wyoming | 33.87 | $387,280 | $76,307 | $16,199 |
| 35 | North Dakota | 33.70 | $387,548 | $79,874 | $15,661 |
| 36 | Hawaii | 32.60 | $334,369 | $141,832 | $14,014 |
| 37 | Montana | 32.49 | $395,720 | $68,937 | $15,337 |
| 38 | South Carolina | 32.38 | $412,771 | $62,909 | $13,996 |
| 39 | Oregon | 32.20 | $377,399 | $91,100 | $14,720 |
| 40 | Oklahoma | 31.73 | $405,113 | $57,215 | $15,205 |
| 41 | Arkansas | 30.68 | $416,224 | $51,032 | $14,069 |
| 42 | Kentucky | 30.25 | $411,897 | $55,629 | $13,800 |
| 43 | Alaska | 26.83 | $321,634 | $113,934 | $15,646 |
| 44 | Alabama | 26.31 | $398,584 | $55,480 | $13,242 |
| 45 | Rhode Island | 26.14 | $353,721 | $104,252 | $12,668 |
| 46 | Louisiana | 22.52 | $395,155 | $56,282 | $11,504 |
| 47 | Vermont | 22.18 | $334,470 | $89,695 | $14,477 |
| 48 | Maine | 19.64 | $338,866 | $79,800 | $13,749 |
| 49 | Mississippi | 17.81 | $377,040 | $46,880 | $12,168 |
| 50 | New Mexico | 14.59 | $351,972 | $58,911 | $11,944 |
| 51 | West Virginia | 12.79 | $345,239 | $52,719 | $12,477 |
