The US economy represent one of the largest economy in the world. The entrepreneurial culture and financial system operated by the country promotes entrepreneurial activities with world class amenities and research universities. This has helped the country to be listed among the very few superpower nations in the world.
The ranking of a state in USA is particularly based on middle income Americans. The methodology being employed include states that have the highest median household income as the leading factor in determining wealth of the state. In addition to this, a state is also ranked on the basis of gross domestic product per capita and amount of taxes paid per person of the state.
Factors like health insurance coverage, employment by industry, poverty, income inequality and food stamp are also considered to develop an overall picture of the wealth of the state.
When we think about the most affluent states in US, Hawaii and Maryland come to mind but the wealth distribution is little more varied than that. Yes, California and New York are among the top richest states in the America but Alaska and New Hampshire are also included in the list. Let’s have a look at the top ten richest states in America.
These Are The Top America’s Richest States 2020
10. Washington – Median household income: $64,129
Washington is the 13th most populous state with a population of 7 million people and it’s also the 18th largest state in United States having an area of 71,362 square miles. Washington is a leading producer of the nation, it’s home to many manufacturing industries including aircraft and missiles and shipbuilding. Being listed among top 10 richest states doesn’t exclude it from economic woes. The state struggles with the 15th highest unemployment rate at 5.7% and it is the 17th lowest state in the nation for poverty.
9. California – Median household income: $64,500
With an overall economy of $2.6 trillion, California is ranked as the 6th largest economy behind United Kingdom. California is the most populous state in the United States and the third most extensive by area. It is the trendsetter in the world as it is the origin of the film industry, the internet, the hippie counterculture, the personal computer and many others. With an estimated median household income of $64500, it’s considered as the 9th richest states in America. The state also has some cons- it has the highest percentage of poverty and income inequality in the United States.
8. Virginia- Median household income: $66,262
Virginia has the highest number of independent cities in the country and the wealthiest jurisdictions based on median income. Virginia is the home of earners with an educated population. It has 37% of its adults boasting of a college degree and a bigger proportion of its population is making more than $200,00 per year. Virginia has an unemployment rate of 4.4 percent which is the 17th lowest in the country.
7. New Hampshire – Median household income: $70,303
New Hampshire has the lowest poverty rate in the US. It is the 10th least populous state of the country and 5th smallest by land area. This is the home of many prestigious school districts and institutions of higher education. New Hampshire earns most of its economic wealth from leasing, real estate and finance that accounts for 24.2% of the state’s GDP. It is home to one of the largest manufacturing companies like SMTH (Smart Manufacturing/ High Technology) which is also the most important sector of the state’s economy.
6. Massachusetts- Median household income: $70,628
Massachusetts is the 15th most populous state of the country. It is the home to several of the nation’s most prestigious institutions of higher learning. Massachusetts witnessed a rise in GDP by 4% that compared to the national 2.6% over the same period. People’s wages were estimated to an increase of 24% annually that raised the average household GDP in 2019. Finance, insurance and leasing are the major operations that take place in this state and professional business is its second largest operation, which makes it one of the richest states in America in 2020
5. Connecticut – Median household income: $71,346
Connecticut is the 22nd lowest populous state of the country and 3rd smallest by land area. The residents of the state are well educated and big earners with more than 10% of households earning more than $200,000 annually. Due to its small population and high earning families, it makes its way to the top 10 in the richest American states.
4. New Jersey – Median household income: $72,222
New Jersey is the 11th highest populous state of the country. Nearly 11% of the households in the state have annual incomes that exceed $200,000 per year. New Jersey is considered one of the richest off-shore tax shelter in the country that earned about $122.8 trillion in the past year according to Boston Consulting Group’s wealth report in 2012. The state also has 37.6% of adults having at least one bachelor’s degree.
3. Alaska- Median household income: $73,355
Alaska is the 3rd lowest populous state of the US. The state has high median household income because of its reliance on oil. It is the third richest state in America, all thanks to its generous distributions of natural resources. Alaska has an unemployment rate of 6.5% which is the fourth highest in the country. The state has its own problems too though the state is the third richest, it is estimated that nearly fifteen percent of the residents do not have health insurance coverage, making it the second highest in these disturbing figures.
2. Hawaii – Median household income: $73,486
Hawaii is the 11th least populous state of the country. Hawaii majorly lies on tourism to boost its economy. With thousands of tourists visiting every year, it’s glittering city and beautiful beaches makes it one of the biggest attractions of America. Hawaii has a low unemployment rate of 3.6% and a low poverty rate of 10.6% in the country.
1. Maryland – Median household income: $75,847
Maryland is considered the richest state per household income with people having over $1 million in investible assets.
Maryland is the 19th most populous state in the country with population number of 6,006,461. It also has second lowest poverty rate of 9.7% due to high level of education in state. With so many amenities and government aid, Maryland makes its way to the richest state in America.