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List of U.S. states by adjusted per capita personal income

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List of states by adjusted per capita personal income estimates the per capita personal income of residents of U.S. states adjusted by differences in the cost of living, called "regional price parities" by the U.S. Bureau of Economic Analysis. The BEA defines regional price parities as an estimate of "the differences in price levels across states and metropolitan areas for a given year and are expressed as a percentage of the overall national price level."[1] The BEA defines personal income as follows:

Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses. Personal income is estimated before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes).[2]

Per Capita Personal Income (PCPI) is a more inclusive estimate of the average standard of living of citizens and residents in the U.S. than measures of per capita income. PCPI "includes wages, benefits, proprietor income, dividends, interest, rent, and transfer payments" such as Social Security, veteran's benefits, farm subsidies, welfare, and food stamps.[3]

The differences in estimates of per capita income and per capita personal income is large. In 2019, the U.S. Census Bureau calculated a per capita income of the United States as 34,103 dollars.[4] The U.S. Bureau of Economic Analysis calculated the PCPI as 56,490 dollars.[5]

A more valid accounting of the differences in the standard of living of American citizens in different states requires recognition that prices vary from state to state and community to community. In general, a dollar has more purchasing power in the poorer states than it does in the richer states. The difference in housing costs from state to state is especially important. The Bureau of Economic Analysis has calculated that the regional price parity of U.S. states ranges from 84.4 in Mississippi (the cheapest state in which to live) to Hawaii at 119.3 (the most expensive state). In other words, an income of $0.84 in Mississippi equals an income of $1.19 in Hawaii with the U.S as a whole having an average PCPI of $1.00. To put it another way, the purchasing power of a dollar is $1.18 in Mississippi and $0.84 in Hawaii. The net impact of accounting for differences in the purchasing power of a dollar in different states is to narrow the gap in the standard of living between rich and poor states.[6]

Ranking states by PCPI, adjusted by regional price parity

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Data in this table are from the Bureau of Economic Analysis (BEA) and are for the year 2022.[7] Adjusted personal income is found by dividing personal income by price parity.

Location PCPI Price
parity		 PCPI
adj.
 United States 65,470 $1.00 65,470
  District of Columbia 95,970 $1.13 85,044
  Wyoming 73,248 $0.92 79,701
  North Dakota 70,360 $0.89 79,363
  Connecticut 82,938 $1.06 77,940
  South Dakota 68,176 $0.88 77,481
  Massachusetts 84,561 $1.09 77,300
  Colorado 75,722 $1.02 74,025
  Nebraska 64,268 $0.90 71,563
  New Jersey 77,199 $1.09 70,983
  Minnesota 68,840 $0.98 70,445
  New York 75,407 $1.08 70,082
  New Hampshire 73,910 $1.08 68,662
  Washington 75,332 $1.10 68,578
  California 77,036 $1.12 68,495
  Iowa 60,222 $0.88 68,107
  Montana 60,984 $0.90 67,560
  Virginia 68,985 $1.02 67,542
  Alaska 68,635 $1.02 67,296
  Kansas 60,424 $0.90 67,167
  Pennsylvania 64,506 $0.96 67,042
  Maryland 70,228 $1.05 66,911
  Illinois 67,655 $1.01 66,815
  Wisconsin 61,475 $0.92 66,596
  Delaware 63,243 $0.98 64,562
  Nevada 62,085 $0.96 64,415
  Texas 62,586 $0.98 64,183
  Indiana 58,323 $0.92 63,521
  Tennessee 58,292 $0.92 63,501
  Missouri 57,818 $0.91 63,453
  Florida 64,806 $1.02 63,446
  Oklahoma 56,298 $0.89 63,419
  Ohio 57,777 $0.91 63,179
  Utah 59,457 $0.94 62,937
  Vermont 63,039 $1.01 62,356
  North Carolina 58,109 $0.94 61,684
  Idaho 56,614 $0.92 61,653
  Michigan 57,038 $0.93 61,050
  Arkansas 52,618 $0.87 60,762
  Rhode Island 63,557 $1.05 60,704
  Louisiana 54,501 $0.91 60,176
  Maine 60,599 $1.01 60,095
  Georgia 56,589 $0.96 59,050
  Arizona 58,442 $1.00 58,502
  Oregon 62,303 $1.07 58,465
  Kentucky 51,921 $0.89 58,106
  Alabama 50,916 $0.88 58,007
  New Mexico 52,194 $0.91 57,368
  South Carolina 53,618 $0.94 57,314
  West Virginia 49,993 $0.89 56,018
  Hawaii 61,779 $1.11 55,738
  Mississippi 46,370 $0.87 53,099

References

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  1. ^ "Regional Price Parities by State and Metro Area". Bureau of Economic Analysis. Retrieved 25 January 2021.
  2. ^ "Personal Income by County and Metropolitan Area, 2019" (PDF). Bureau of Economic Analysis. Retrieved 24 January 2021.
  3. ^ "What is the difference between GDP and personal Income?". Montana.gov: Official State Website. Retrieved 24 January 2021.
  4. ^ "Quick Facts: United States Census Bureau". United States Census Bureau. Retrieved 24 January 2021.
  5. ^ "Press Release: Real Personal Income by State and Metro Area in 2019" (PDF). Bureau of Economic Analysis. Retrieved 24 January 2021.
  6. ^ Sauter, Michael B. (25 November 2020). "Arkansas, Mississippi are among the states where a dollar has the highest value". USA Today: Money. Retrieved 24 January 2021.
  7. ^ Under the first section 'Summary table...' select the top entry. Select 'All areas'. Select 'Per capita personal income' and/or 'Regional price parities (RPPs)'. Select 'Levels' and next, the most recent year. "Regional Data". bea.org. Retrieved 13 Feb 2024.
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