Household income in the United States is a critical economic indicator that measures the combined earnings of all individuals living in a single household.
Median Household Income by U.S. state
Median household income is that income level where half of all houses make above this and half of all houses make below this. It is one of the most important indicators of the economic condition of the average American household. United States Census Bureau data shows that in September 2021, the United States median household income was roughly $68,700 annually.
Top 10 States with the Highest Median Household Income
Maryland was among the top states that had the highest median household income year after year. Its geographical location near the Washington, D.C. metropolitan area, whose high-income jobs in the government and technology sector were a big reason behind its prosperity.
The high median income of New Jersey also had roots in its suburbs, whose citizens commuted to high-paying employment in the New York City metropolitan area, particularly in finance and allied industries.
Connecticut boasted a thriving finance and insurance sector, with most of the people working good-paying jobs within nearby New York City. Connecticut is also renowned for affluent towns and suburbs.
Massachusetts boasted a thriving labor market supported by colleges, healthcare institutions, and technological sectors. Its highly educated workforce contributed to its high median household income.
Alaska‘s high middle income was due to its rich resources, including oil. The state’s unique geography and rugged climate often required that workers be offered higher pay to recruit and retain them.
Hawaii‘s successful tourism industry and Pacific location enabled it to boast a high median household income. But the state’s costly cost of living can offset some of those benefits.
New Hampshire‘s diversified economy included manufacturing, high-tech, and healthcare businesses. The absence of a state income tax gave citizens higher disposable incomes.
Virginia’s economy boomed on government jobs, defense contractors, and technology companies, particularly in and around the Washington, D.C. metropolitan area.
Minnesota‘s robust employment base through healthcare, education, and manufacturing industries raised its median household income.
The Colorado economy consisted of technology, energy, and outdoor recreation sectors. Denver and Boulder cities were strong job markets contributing to the median income of the state.
Median U.S. Household Income by County
Variation in household income from county to county on the map below is present due to differences in the cost of living, employment, and local economic conditions. All cities have higher average incomes than rural areas.
US counties with the Highest Median Household Income
Loudoun County, Virginia: Located in the Washington, D.C. metro area, Loudoun County is consistently ranked one of the wealthiest median household income counties. This is due to its close access to high-earning jobs found in the city of Washington.
Fairfax County, Virginia: Fairfax County, another city encompassed by the Washington, D.C. metro area, boasts a firm job market and an abundance of government and IT-related employment available, leading to high median income.
Howard County, Maryland: Howard County, located halfway between Baltimore and the nation’s capital, Washington, D.C., boasts a well-educated population and is endowed with a diversified economy that includes high-tech and health care industries.
Santa Clara County, California: Often referred to as Silicon Valley, Santa Clara County is a technology center where numerous well-paying jobs exist within the technology industry, which makes up its very high median household income.
San Mateo County, California: San Mateo County, as with Santa Clara County, is situated in Silicon Valley and is densely populated with technology companies and professionals.
Falls Church City, Virginia: This independent city in the Commonwealth of Virginia is always among the highest in median household income because it is affluent and proximate to high-paying employment (companies General Dynamics and Northrop Grumman).
Arlington County, Virginia: Arlington County, located across the Potomac River from Washington, D.C., benefits from proximity to the capital and has a strong jobs base.
Douglas County, Colorado: Douglas County, south of Denver, has experienced substantial population and economic growth with an emphasis on education and overall quality of life.
San Francisco County, California: San Francisco County, in which San Francisco lies, has a diversified economy of tourism, technology, and finance that maintains its high median household income.
Marin County, California: Located north of San Francisco, Marin County is renowned for being rich and scenic. Its high median income is supported by well-paying Bay Area careers.
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