THE MIRROR OF MEDIA

U.S. Per Capita Income By State In 2021


Often when you look up incomes by state, the data is actually showing the nominal household income, rather than what an individual person is earning. For a better glimpse of incomes in the United States, looking at per capita income can be helpful. Real personal income per capita is income per person adjusted for state price level differences and national inflation, according to the Bureau of Economic Analysis. Thus, real personal income per capita is a more accurate measure than using just personal income per capita, which is nominal and doesn’t account for inflation or cost of living differences in each state. Real U.S. per capita income in 2020 was $53,504, representing a 12.8% increase since 2015, when it stood at $47,414. Read on to find out real per capita income by state.

States With the Highest Per Capita Income

There are 22 states that have real per capita incomes that exceed the U.S. per capita income average of $53,504. Geographically, these states are quite diverse, running from the northern Pacific to the upper South. Here are the top 10 states with the highest real per capita incomes, as well as their corresponding nominal per capita incomes (real per capita income figures are in constant 2012 dollars):

Connecticut

  • Real per capita income: $68,533
  • Nominal per capita income: $78,609

Massachusetts

  • Real per capita income: $65,853
  • Nominal per capita income: $78,458

New York

  • Real per capita income: $60,936
  • Nominal per capita income: $74,472

Wyoming

  • Real per capita income: $60,463
  • Nominal per capita income: $61,855

North Dakota

  • Real per capita income: $60,286
  • Nominal per capita income: $61,530

New Jersey

  • Real per capita income: $59,594
  • Nominal per capita income: $73,460

South Dakota

  • Real per capita income: $58,414
  • Nominal per capita income: $59,281

New Hampshire

  • Real per capita income: $58,342
  • Nominal per capita income: $67,092

California

  • Real per capita income: $57,347
  • Nominal per capita income: $70,192

Pennsylvania

  • Real per capita income: $57,030
  • Nominal per capita income: $61,700

In all these cases, nominal per capita personal income is higher than real, as expected since nominal figures do not account for inflation and regional price differences. However, the difference between real and nominal per capita income varies significantly depending on the state. In South Dakota, for example, the difference between the two is only $867. In New Jersey, on the other hand, the difference is very large — $13,866, with a nominal per capita income of $73,460 versus a real per capita income of $59,594.

States With the Lowest Per Capita Income

Turning to the 10 states with the lowest real per capita income, the region of the country which is represented most is the U.S. South. However, because of lower costs of living in southern states, many of these 10 states actually have real per capita incomes that are higher than their nominal per capita income figures. Here are the 10 states with the lowest per capita incomes:

Mississippi

  • Real per capita income: $43,284
  • Nominal per capita income: $42,129

Arizona

  • Real per capita income: $45,193
  • Nominal per capita income: $49,648

New Mexico

  • Real per capita income: $45,637
  • Nominal per capita income: $46,338

West Virginia

  • Real per capita income: $46,130
  • Nominal per capita income: $44,994

Alabama

  • Real per capita income: $46,963
  • Nominal per capita income: $46,479

Hawaii

  • Real per capita income: $47,234
  • Nominal per capita income: $58,655

South Carolina

  • Real per capita income: $47,252
  • Nominal per capita income: $48,021

Kentucky

  • Real per capita income: $47,551
  • Nominal per capita income: $47,339

Arkansas

  • Real per capita income: $47,765
  • Nominal per capita income: $47,235

Idaho

  • Real per capita income: $48,216
  • Nominal per capita income: $48,759

In Mississippi, the nominal per capita income is $1,155 lower than the corresponding real per capita income in the state, $42,129 versus $43,284. Meanwhile, Hawaii has very much the opposite situation: Nominal per capita income is $11,421 higher than real per capita income, due to high costs of living eroding real personal income in that state.

Per Capita Income by State in 2021

Below is a table featuring all 50 states and their respective real per capita income figures in 2020 and 2015, as well as the percentage change over the last five years.



Source link