People earn more in these US states, says a new study. Where did California rank?

Despite the high cost of living, California does not rank among the top 10 highest-income US states, a new study found.

On Tuesday, online financial service WalletHub released a study ranking all 50 states in the country — and Washington, D.C. — based on median annual income.

Real median household income in the United States was about $74,580 a year in 2022, according to the most recent data from the Federal Reserve.

“There is huge income inequality,” WalletHub said, “with some people making much more than that, while others are sadly stuck in poverty.”

According to the study, California narrowly missed the Top 10 list for highest incomes, dropping to No. 11.

Which US states had the highest incomes?

Virginia was no. 1 on WalletHub’s list of US states with the highest incomes.

According to the study, the median annual income of the top 5% of earners in Virginia was $518,296.

The median annual income was $89,393, and those in the bottom 20% earned an average of $18,694 per year.

New Jersey ranked second with the top 5% of earners earning an average of $505,621 per year.

New York was third with the top earners earning an average of $553,436 a year.

These were the top 10 states in the United States in terms of high incomes, according to WalletHub:

1. Virginia

2. New Jersey

3. New York

4. CONNECTICUT

5. Washington

6. Utah

7. Illinois

8. MINNESOTA

9. Colorado

10. Massachusetts

What about in California?

Golden State was the no. 11 on WalletHub’s list of top earners who have an average annual income of $454,829.

According to the study, the median annual income in California was $123,988, and the lowest earners earned an average of $13,949 a year.

Which countries have the lowest income?

On the opposite end of the spectrum, West Virginia is ranked no. 1 in WalletHub’s study as the lowest-income US state.

The median annual income of the top 5% in West Virginia was $345,239, and the bottom 20% of earners earned an average of $12,477 each year. The median annual income is $52,719.

New Mexico and Mississippi were No. 2 and no. 3, respectively, in terms of the lowest income states in the country.

These 10 states rank lowest in the nation in terms of annual income, according to WalletHub:

1. West Virginia

2. New Mexico

3. Mississippi

4. Maine

5. Vermont

6. Louisiana

7. Rhode island

8. Alabama

9. Alaska

10. Kentucky

How did WalletHub come up with its rankings?

WalletHub used a weighted ranking system to rate the 50 states and Washington, DC

Factors include the median annual income of the top 5% of earners, the median annual household income, and the median annual income of the bottom 20% of earners.

The metrics came from the US Census Bureau and the Community and Economic Research Council. They were adjusted for the cost of living index, according to WalletHub.

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