Income growth in the U.S. was largely flat in 2021, but a handful of states made significant gains, according to the latest Census Bureau data.
Overall, median household income nudged up only slightly since 2019, from $69,639 to $69,717, as measured in 2021 inflation-adjusted dollars. Data from 2020 was omitted from the report, partly because of disrupted data collection during the pandemic.
In terms of income growth, 27 states and D.C. either declined or essentially went unchanged since 2019.
But in 25 states and territories, incomes are increasing. The following 10 states had the highest percentage gains:
- 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 is first overall, with median household income rising from $66,766 to $72,431 in 2021. D.C. fared worst of all places, with median income dropping by 7.9% — from $97,781 to $90,088.
The Census Bureau’s report doesn’t suggest why certain states fared better than others. However, income growth could be partly related to pandemic migration patterns away from urban centers in states like California and New York.
Aside from Pennsylvania, states with the most income growth also experienced some of the highest rates of population inflow in 2021, according to Pew Research Center data.
It’s worth remember that income varies widely depending on where you live. For instance, Maryland had a 2021 median household income of $90,203, which is nearly double that of lowest-ranked Mississippi, where median household income is $48,716.
Here’s a breakdown of median salary ranges by state:
