Virginia and West Virginia have an even bigger gap in how far their money goes than you might have thought, according to a 2024 WalletHub report.
In Virginia, residents have the highest income on average than anywhere else in the nation.
In neighboring West Virginia, people have the lowest.
Income Disparities
To determine which states have the best and worst income in the nation, WalletHub calculated the following three metrics in each state plus 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 fairer.
Cassandra Happe, an analyst at WalletHub, explains why they chose to arrange their study in this manner.
“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,” Hope notes.
“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 tops the list when it comes to household income. The top 5% of Virginian earners make $518,296 per year when adjusted for the cost of living.
Virginia’s median annual income is $89,393, significantly more than the nation’s approximately $74,600 annual median income, according to the Federal Reserve.
That said, $89,393 isn’t the highest median annual income in the nation.
Excluding the District of Columbia, which has a median income of $162,265, that honor goes to Hawaii, whose residents earn a median income of $141,832 per year.
In contrast, the bottom 20% of Virginia residents make $18,694 per year.
Many Virginians work in high-paying jobs in fields like technology, government, and business. This helps boost the overall income of the state, making it a place where many people can earn well and live comfortably.
The state also benefits from its location near Washington, D.C. Many Virginians work in jobs related to federal government work, which often comes with good pay and benefits.
West Virginia’s Low Income
Take a short trip to the west, and West Virginia residents face a completely different situation on the money front.
The median household income in West Virginia is $52,719. This isn’t the lowest annual median income—Mississippi takes that unwanted prize at $46,880—but it’s significantly lower compared to many states.
As for West Virginia’s top 5% earners, they make an average annual income of “only” $345,239 when adjusted for the cost of living. The bottom 20% of West Virginians earn a mere $12,477 annually.
Much of West Virginia’s economy relies on sectors like coal mining and other natural resource jobs.
Over time, these jobs have either declined or haven’t provided wages that keep up with the cost of living. This leaves many families in West Virginia struggling to make ends meet.
Factors Influencing Income Differences
There are several reasons why Virginia and West Virginia show such different income levels. One important factor is the type of industries that are common in each state.
Virginia has a mix of industries, including technology, finance, and government. These industries tend to offer higher wages.
Another factor is education and job training. In Virginia, many people have access to higher education and career training programs. This helps them qualify for jobs that pay more.
In contrast, West Virginia has fewer opportunities for higher education and job training.
This difference can make it hard for people in West Virginia to move into higher-paying fields, which affects the overall income of the state.
Full State Rankings
Are you curious to see where other states rank on the income front?
Source: WalletHub
Below is WalletHub’s full breakdown with the specifics of these rankings.
| 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 |
