Mapping America's Wealthiest States: Understanding Economic Prosperity

When economists evaluate which states possess the strongest financial foundations, they typically examine gross domestic product (GDP) alongside income levels and economic vitality. The concept of a “wealthiest state” extends beyond simple wealth accumulation—it reflects a complex interplay of productivity, income distribution, and overall economic health. Understanding what makes certain states economically dominant offers insights into regional development patterns across the nation.

The U.S. Department of Commerce’s Bureau of Economic Analysis provides the framework for measuring state-level economic performance. Unlike national GDP calculations, state economic output encompasses diverse industries and services unique to each region. By analyzing median household earnings, state GDP contributions, and poverty levels, researchers can identify which wealthiest states truly lead the nation’s economic landscape.

How Economic Strength Is Measured Across the Wealthiest States

State economic measurement differs fundamentally from country-level analysis. A state’s gross product depends on total expenditures and income generation across all sectors—from technology and finance to agriculture and manufacturing. GOBankingRates identified America’s wealthiest states by combining multiple economic indicators: state GDP figures from the 2022 Census data, median household income from the American Community Survey, home values from Zillow’s residential market data, state tax revenue per capita, and poverty percentage rates.

This comprehensive approach reveals that economic prosperity isn’t determined by a single factor. States ranking highest as wealthiest demonstrate strength across multiple metrics—strong household incomes, significant GDP contributions, lower poverty rates, and robust property values. The methodology accounts for regional economic diversity rather than applying a one-size-fits-all measurement.

The Top Tier: States Leading in Wealth Generation

California dominates the rankings as America’s most economically powerful state, contributing a staggering $3.6 trillion to the national GDP. With a median household income of $84,097 and a 12.3% poverty rate, California’s economic influence stems from its diverse economy spanning technology, entertainment, agriculture, and international trade.

New York ranks second with a $2.53 trillion gross state product and median income of $75,157, though its 13.5% poverty rate indicates income inequality. The state’s economic engine relies heavily on finance, real estate, and professional services concentrated in the New York City metropolitan area.

Texas secures third place with a $2.4 trillion GDP and median household income of $67,321. Despite lower median income compared to northern states, Texas’s massive population and diversified economy—energy, technology, manufacturing—generate enormous total economic output.

Understanding Key Indicators in Wealthiest States

Massachusetts ($688.3 billion GDP, $89,026 median income, 9.9% poverty rate) exemplifies states where strong median earnings correlate with substantial economic output. The concentration of education, healthcare, finance, and biotechnology industries supports high income levels.

New Jersey rounds out the top five with $745.4 billion gross state product and $89,703 median household income, just 9.8% of residents living below the poverty line. Proximity to New York City combined with strong pharmaceutical, chemical, and financial service sectors drives economic strength.

Washington State ($726 billion GDP, $82,400 median income) benefits from technology hubs and international trade through Pacific ports. Virginia ($649.4 billion, $80,615 median income) gains economic strength from federal government presence and military installations alongside growing technology sectors.

Regional Patterns Among Wealthiest States

Northeastern wealthiest states including Connecticut ($322 billion GDP, $83,572 income), Maryland ($470.2 billion, $91,431 income—the highest median in the ranking), and New Hampshire ($104.4 billion, $83,449 income, 7.4% poverty rate) demonstrate that proximity to major metropolitan areas and established professional service industries correlate with higher earnings.

Midwestern wealthiest states present different patterns. Illinois ($1.03 trillion GDP, $72,563 income) leverages Chicago’s financial and transportation hub status. Minnesota ($446.5 billion, $77,706 income, 9.2% poverty) combines strong manufacturing heritage with growing technology presence. Utah ($248.2 billion, $79,133 income, 8.8% poverty—the lowest) shows robust economic growth despite lower total GDP, driven by tech and outdoor industries.

Western states including Colorado ($484.4 billion, $80,184 income) and Oregon ($299.1 billion, $70,084 income) demonstrate varied economic models, from energy and mining to technology and outdoor recreation.

Lower-Ranked Yet Significant Wealthiest States

Even states ranking lower among wealthiest demonstrate substantial economic contributions. Rhode Island ($71.4 billion GDP, $74,489 income), Delaware ($87.5 billion, $72,724 income), Alaska ($63.6 billion, $80,287 income), and North Dakota ($73.3 billion, $68,131 income) each play important economic roles despite smaller total output.

Notably, Hawaii rounds out the top 20 with $98.2 billion GDP, $88,005 median household income, and 9.5% poverty rate. Its tourism-dependent economy combined with strategic military significance supports strong income levels despite geographic isolation.

The Complete Ranking of Wealthiest States

Based on comprehensive 2023 economic data, here are America’s wealthiest states ordered by combined economic indicators:

1. California - $3.6T GDP, $84,097 income
2. New York - $2.53T GDP, $75,157 income
3. Texas - $2.4T GDP, $67,321 income
4. Massachusetts - $688.3B GDP, $89,026 income
5. New Jersey - $745.4B GDP, $89,703 income
6. Washington - $726B GDP, $82,400 income
7. Maryland - $470.2B GDP, $91,431 income
8. Connecticut - $322B GDP, $83,572 income
9. Colorado - $484.4B GDP, $80,184 income
10. Virginia - $649.4B GDP, $80,615 income
11. Texas - $2.4T GDP (included above)
12. New Hampshire - $104.4B GDP, $83,449 income
13. Minnesota - $446.5B GDP, $77,706 income
14. Utah - $248.2B GDP, $79,133 income
15. Illinois - $1.03T GDP, $72,563 income
16. Rhode Island - $71.4B GDP, $74,489 income
17. Oregon - $299.1B GDP, $70,084 income
18. Delaware - $87.5B GDP, $72,724 income
19. Alaska - $63.6B GDP, $80,287 income
20. North Dakota - $73.3B GDP, $68,131 income

What Determines Success Among Wealthiest States

The analysis reveals that America’s wealthiest states share common characteristics: economic diversification, strong educational institutions, professional service sectors, and geographic advantages for trade and commerce. States with the highest median incomes often concentrate in the Northeast and Pacific Northwest, reflecting historical industrial development and proximity to financial centers.

However, total GDP size doesn’t always correlate with per-capita wealth. While California and Texas generate the largest absolute economic output, states like Maryland and New Jersey demonstrate superior income distribution through professional employment sectors and lower poverty rates.

The identification of wealthiest states remains fluid, dependent on economic cycles, industry shifts, and regional development. Real estate values, tax policies, and workforce education levels continue reshaping which states maintain their positions among America’s most economically prosperous regions. Understanding these dynamics helps stakeholders, businesses, and policymakers navigate regional economic opportunities and challenges in an evolving national landscape.

Data current as of June 2023. Economic information sourced from U.S. Census Bureau, Bureau of Economic Analysis, Zillow, American Community Survey, and Tax Policy Center.