Florida Doesn’t Rank Among the Richest or Poorest States, Study Shows
Some states have a reputation for being well-off. Others are known for having lower incomes. But how do Americans’ perceptions of wealthy and poor states measure up to cold hard data?
World Population Review took on the task of ranking states according to each state’s gross domestic product (GDP). That means they honed in on each state’s economy, as a higher GDP often corresponds with more prosperity for residents.
Gathering the Data
World Population Review assessed each state’s GDP, which reflects the overall value of its goods and services. In layperson’s terms, GDP indicates how strong or weak a state’s economy is.
For reference, California has the highest GDP, at $3,120,386,000. In contrast, Vermont’s $33,278 GDP is the lowest in the nation. However, comparing a state’s GDP per capita is an easier and more accurate comparison. For this reason, World Population Review based its rankings of the wealthiest and poorest states on GDP per capita.
With that under our belt, the following are the richest states in America.
The Exception
The District of Columbia (D.C.) isn’t a state. However, its $236,267 GDP per capita is too massive to ignore. That puts D.C. at over double the GDP of New York, the richest state, according to World Population Review.
Poorest States
The following states are the poorest based on a GDP per capita perspective. However, a low GDP doesn’t necessarily mean that a state is in totally bad shape, and a high GDP doesn’t mean it’s in good shape across the board.
Case in point? Washington, D.C. has a higher GDP per capita and a higher median household income compared to all states. However, it has a high poverty rate of 13.5%.
With that in mind, these are World Population Review’s poorest states based on GDP per capita.
Moving States
People thinking about moving states and who are in the prime of their careers may be more inclined to choose a state with a higher GDP per capita.
In contrast, retirees might not be as moved by what constitutes a “rich” and “poor” state. Instead, states that offer no or low state income tax, affordable health care, and an environment that allows them to spend their days doing what they love most are often more important.
Zooming in on Income
According to 2022 data collected by Investopedia, Maryland is the richest state in the country from a median household income perspective. The average household in the Free State has $98,461 in annual income to their name. New Jersey ($97,126) and Massachusetts ($96,505) are the second and third-richest income states, respectively.
In contrast, Mississippi’s GDP per capita ranking matches its residents’ last-place median household income ranking. The median household income in the Magnolia State is $52,985, the lowest in the nation.
West Virginians have the second-lowest median household income ($55,217), and Arkansans have the third-lowest ($56,335).
Most to Least Expensive States To Retire
Are you hoping to settle down in a cheaper state during retirement? These are the states to consider and, equally important, those you’re better off avoiding.
Most to Least Expensive States to Retire Ranked From 1 to 50
The Sunshine State or Land of Regret?
Deciding to move to a different state is a big deal, and Florida is on many people’s radar. The Sunshine State’s warm weather and state income tax-free policies may draw you to call it your new home. But it doesn’t come without its drawbacks.
