Average Salary by State: See Where You Rank
Understanding the average salary by state can provide valuable insights into earning potential, especially when considering career moves or salary negotiations. These figures are influenced by various factors, including the cost of living, regional economic strength, and even state minimum wage laws.
Understanding the Average Annual Salary by State
The average annual salary by state offers a crucial benchmark for understanding economic landscapes across the United States. This figure represents the mean income earned by workers within a specific state, providing a broad overview of earning potential. According to the Bureau of Labor Statistics, the average salary in the U.S. is $65,470 (Empower). However, this national average masks significant variations when you look at individual states.
For instance, average salaries span a wide range across the nation, from $47,570 in Mississippi to $80,330 in Massachusetts (Empower). These disparities highlight the diverse economic conditions and job markets present throughout the country. Another source, Financeyahoo, states the national average salary is $63,795, based on the latest data from the Social Security Administration. Forbes reports a slightly different national average annual salary of $64,505, with an average hourly rate nationwide of $31.01.
These figures are not static; they are influenced by numerous economic indicators and can fluctuate over time. Factors such as industry concentration, educational attainment levels, and the overall economic health of a state all play a role in shaping these averages. Understanding these state-specific averages is essential for individuals planning to relocate or negotiate salaries, as it provides a realistic expectation of what one might earn in different parts of the country.
Comparison of average salaries between the highest and lowest paying states.
| State | Average Salary | Median Salary |
|---|---|---|
| Alabama | $53,400 | $41,350 |
| Alaska | $69,880 | $56,140 |
| Arizona | $63,040 | $47,680 |
| Arkansas | $51,250 | $39,060 |
| California | $76,960 | $54,030 |
| Colorado | $71,960 | $54,050 |
| Connecticut | $73,740 | $56,130 |
| Delaware | $65,990 | $49,280 |
| Florida | $60,210 | $45,070 |
| Georgia | $61,240 | $45,480 |
| Hawaii | $65,030 | $50,510 |
| Idaho | $55,640 | $44,240 |
| Illinois | $67,130 | $48,730 |
| Indiana | $56,420 | $45,470 |
| Iowa | $56,400 | $46,460 |
| Kansas | $56,270 | $45,250 |
| Kentucky | $54,030 | $43,730 |
| Louisiana | $53,440 | $41,320 |
| Maine | $60,000 | $47,590 |
| Maryland | $73,620 | $55,810 |
| Massachusetts | $80,330 | $60,690 |
| Michigan | $60,600 | $46,940 |
| Minnesota | $66,700 | $50,880 |
| Mississippi | $47,570 | $37,500 |
| Missouri | $57,580 | $45,080 |
| Montana | $55,920 | $45,690 |
| Nebraska | $58,080 | $46,440 |
| Nevada | $58,900 | $44,810 |
| New Hampshire | $66,110 | $49,980 |
| New Jersey | $73,980 | $54,860 |
| New Mexico | $57,520 | $43,620 |
| New York | $78,620 | $56,840 |
| North Carolina | $59,730 | $45,440 |
| North Dakota | $59,050 | $48,830 |
| Ohio | $59,890 | $46,690 |
| Oklahoma | $53,450 | $41,480 |
| Oregon | $66,710 | $50,010 |
| Pennsylvania | $61,920 | $47,430 |
| Rhode Island | $66,610 | $50,970 |
| South Carolina | $54,250 | $42,220 |
| South Dakota | $53,230 | $43,680 |
| Tennessee | $56,030 | $43,820 |
| Texas | $61,240 | $45,970 |
| Utah | $61,070 | $47,020 |
| Vermont | $62,780 | $49,630 |
| Virginia | $70,050 | $49,920 |
| Washington | $78,130 | $59,920 |
| West Virginia | $52,200 | $39,770 |
| Wisconsin | $59,500 | $47,590 |
| Wyoming | $57,930 | $47,250 |
Highest Salary: States with the Highest and Lowest Salaries
When examining average salaries across the United States, a clear distinction emerges between states offering the highest and lowest compensation. Massachusetts consistently ranks among the states with the highest average salaries. Empower reports an average salary of $80,330 in Massachusetts, while Financeyahoo states it has the highest annual income of $76,600. Forbes further supports this, noting Massachusetts tops the category with an impressive average salary of $83,050.
However, high salaries often correlate with a higher cost of living. Massachusetts, for example, has a cost of living that is 46% higher than the national average (Empower). This means that while the nominal income is higher, the purchasing power might be somewhat offset by increased expenses for housing, goods, and services. Other states with high average salaries include New York, with $78,620, and Washington, at $78,130 (Empower).
Conversely, Mississippi consistently ranks at the bottom for average salaries. Empower indicates an average salary of $47,570 in Mississippi, which is 41% less than Massachusetts. Forbes also places Mississippi at the bottom, with an average salary of $49,740 per year. While the salaries are lower, Mississippi’s cost of living is 13% lower than the national average (Empower). Other states with lower average salaries include Arkansas, at $51,250, and West Virginia, with $52,200 (Empower). These comparisons highlight the complex relationship between income and living expenses across different states.
Exploring Regional Salary Differences
Regional salary differences across the U.S. are significant, reflecting varied economic structures, industry concentrations, and costs of living. The Northeast, particularly states like Massachusetts, New York, and Connecticut, generally boasts higher average salaries. Massachusetts leads with an average of $80,330, followed by New York at $78,620, and Connecticut at $73,740 (Empower). These states often have strong economies driven by finance, technology, and healthcare sectors, which typically offer higher-paying jobs.
The West Coast also presents strong earning potential, with states like California and Washington showing high average salaries. California’s average salary is $76,960, and Washington’s is $78,130 (Empower). These regions are hubs for technology, innovation, and entertainment, contributing to a competitive job market and elevated wages. However, like the Northeast, these areas often come with a substantially higher cost of living, particularly for housing.
In contrast, states in the Southeast and some parts of the Midwest tend to have lower average salaries. Mississippi, for instance, has the lowest average salary at $47,570, with Arkansas at $51,250 and West Virginia at $52,200 (Empower). These regions may have economies more reliant on industries with lower wage scales or have a lower overall cost of living, which can influence salary levels. Understanding these regional variations is crucial for individuals considering relocation or career planning, as it impacts overall financial well-being.
Average Salary vs. Median Salary Explained
When discussing income, it’s important to distinguish between average salary and median salary, as they provide different perspectives on earning potential. The average salary, also known as the mean, is calculated by summing all salaries in a given group and dividing by the number of salaries. This figure can be heavily influenced by outliers, such as a few very high earners, which can skew the average upwards.
For example, the national average salary is $65,470 according to the Bureau of Labor Statistics (Empower). However, this number might not accurately reflect the typical worker’s income if a small percentage of individuals earn significantly more. The median salary, on the other hand, represents the middle value in a sorted list of salaries. Half of the workers earn more than the median, and half earn less. This measure is less affected by extreme high or low incomes, offering a more representative picture of typical earnings.
The median wage was $59,228 in the first quarter of 2024 (Empower). Financeyahoo further specifies that as of Q4 2023, the median weekly earnings of full-time workers was $1,145, or $59,384 per year. Comparing the national average salary of $65,470 (Empower) to the median wage of $59,228 (Empower) reveals that the average is higher, suggesting the presence of high earners pulling the mean upwards. For a clearer understanding of what most people earn, the median salary is often a more insightful metric than the average salary.
What is the Average Salary by State?
The average salary by state is a statistical measure that represents the mean income earned by workers within a specific geographical area. It is calculated by taking the total compensation paid to all employees in a state and dividing it by the total number of employees. This figure provides a general indicator of economic prosperity and earning potential within that state. For instance, the average salary in the U.S. is $65,470, according to the Bureau of Labor Statistics (Empower).
However, this single national figure doesn’t capture the wide variations across different states. Average salaries can range significantly, from $47,570 in Mississippi to $80,330 in Massachusetts (Empower). These differences are influenced by a multitude of factors, including the dominant industries in a state, the cost of living, the educational attainment of its workforce, and state-specific economic policies. A state with a strong technology sector, for example, might have a higher average salary due to the prevalence of high-paying tech jobs.
Understanding what the average salary by state means is crucial for various stakeholders. For individuals, it helps in making informed decisions about career paths, relocation, and salary expectations. For policymakers, it can inform economic development strategies and labor market analyses. It’s a snapshot of the economic landscape, reflecting the collective earning power of a state’s workforce at a given time, though it’s important to remember that it’s a broad average and individual experiences may vary significantly.
How Average Salary by State Works
The calculation of the average salary by state involves aggregating income data from various sources to produce a representative figure. Typically, government agencies like the Bureau of Labor Statistics (BLS) or organizations that compile economic data gather information from employers, tax records, and surveys. They collect data on wages, salaries, and other forms of compensation across different industries and occupations within each state. This raw data is then processed to determine the mean income.
For example, to calculate the average salary for a state, all reported incomes are summed, and that total is divided by the number of individuals included in the dataset. This method provides a single numerical value that represents the typical earning level. The national average salary, for instance, is $65,470 according to the Bureau of Labor Statistics (Empower), which is derived from a similar process at a broader scale. Different sources may use slightly different methodologies or data sets, leading to minor variations in reported averages, such as Forbes reporting a national average of $64,505.
It’s important to note that these averages are often updated periodically, reflecting changes in economic conditions, inflation, and labor market dynamics. For example, the median wage was $59,228 in the first quarter of 2024 (Empower), indicating ongoing adjustments. The process of determining average salaries by state is a complex statistical endeavor designed to provide valuable insights into economic health and individual earning potential across the nation.
Key Points
- The average salary in the U.S. is $65,470 according to the Bureau of Labor Statistics.
- Average salaries span a wide range across the nation, from $47,570 in Mississippi to $80,330 in Massachusetts.
- The median wage was $59,228 in the first quarter of 2024.
- Massachusetts tops the lists of states with the highest salaries, but its cost of living is 46% higher than the national average.
- Mississippi has the lowest average salary at 41% less than Massachusetts, and a cost of living that is 13% lower than the national average.
- The national average salary is $63,795, according to the latest data from the Social Security Administration.
Frequently Asked Questions
What is the average salary in the U.S.? The average salary in the U.S. is $65,470 according to the Bureau of Labor Statistics.
What is the difference between average and median salary? The median is the midpoint in the data set, with 50% of incomes falling above that figure, and 50% below. For instance, billionaires might drive the average higher than what the typical worker actually makes.
How much do the top 10% of Americans make per year? The top 10% of earners make $121,470 on average.
What percentage of Americans make over $75K? Only 12.3% of Americans make in the $75,000 to $99,999 range. An additional 16.4% make between $100,000 and $149,000.