Which States Are America's Wealthiest? Measuring Economic Prosperity Across the Nation

When evaluating which states are America’s richest, economists turn to a comprehensive framework that looks beyond surface-level statistics. Understanding what makes a state truly wealthy requires examining multiple economic indicators working in concert—gross domestic product, household income levels, and poverty rates. These metrics combine to paint a complete picture of economic health and opportunity across different regions.

The concept of state-level wealth differs significantly from national economic measurements. According to the U.S. Department of Commerce’s Bureau of Economic Analysis, measuring a state’s economic strength involves analyzing the total value of goods and services produced within its borders, combined with income distribution and poverty indicators. This multi-factor approach reveals which states possess the strongest economic foundations.

The Framework: How We Identify America’s Most Economically Powerful States

To determine which American states rank among the richest, researchers at GOBankingRates analyzed five key economic indicators for each state. The methodology combines state economic output data with household income statistics and poverty percentages to create a comprehensive wealth ranking. This approach acknowledges that a state’s true economic strength encompasses not just total production capacity, but also how broadly prosperity is distributed among residents.

The primary factors examined include a state’s gross state product (total economic output), median household earnings, poverty rate, average home values, and tax revenue per capita. By weighting these elements together, the analysis identifies which states maintain the most robust and balanced economic ecosystems.

The Top Performers: America’s Wealthiest Economies

California dominates the list as America’s richest state, generating $3.6 trillion in annual economic output—a figure that reflects its massive population, technological innovation hub status, and diverse industries. Yet California’s $84,097 median household income and 12.3% poverty rate reveal that wealth concentration coexists with economic inequality.

New York follows closely as the nation’s second-richest state, with $2.53 trillion in economic output. Despite a lower median income of $75,157 and higher poverty rate of 13.5%, New York’s position reflects its dominance in finance, media, and business services.

Texas secures the third position with $2.4 trillion in economic output, notably supported by energy, agriculture, and manufacturing sectors. Its $67,321 median household income and 14.0% poverty rate demonstrate that significant total economic power doesn’t necessarily translate to elevated middle-class earnings across the board.

Illinois ($1.03 trillion), Washington ($726 billion), and Virginia ($649.4 billion) round out the upper tier of economically powerful states, each generating substantial wealth through distinct economic specializations.

The Complete Ranking: America’s 20 Richest States

1. California

• Economic Output: $3.6 trillion
• Median Household Income: $84,097
• Poverty Rate: 12.3%

2. New York

• Economic Output: $2.53 trillion
• Median Household Income: $75,157
• Poverty Rate: 13.5%

3. Texas

• Economic Output: $2.4 trillion
• Median Household Income: $67,321
• Poverty Rate: 14.0%

4. Illinois

• Economic Output: $1.03 trillion
• Median Household Income: $72,563
• Poverty Rate: 11.8%

5. Washington

• Economic Output: $726 billion
• Median Household Income: $82,400
• Poverty Rate: 10.0%

6. Virginia

• Economic Output: $649.4 billion
• Median Household Income: $80,615
• Poverty Rate: 9.9%

7. Massachusetts

• Economic Output: $688.3 billion
• Median Household Income: $89,026
• Poverty Rate: 9.9%

8. New Jersey

• Economic Output: $745.4 billion
• Median Household Income: $89,703
• Poverty Rate: 9.8%

9. Maryland

• Economic Output: $470.2 billion
• Median Household Income: $91,431
• Poverty Rate: 9.2%

10. Connecticut

• Economic Output: $322 billion
• Median Household Income: $83,572
• Poverty Rate: 10.0%

11. Colorado

• Economic Output: $484.4 billion
• Median Household Income: $80,184
• Poverty Rate: 9.6%

12. Minnesota

• Economic Output: $446.5 billion
• Median Household Income: $77,706
• Poverty Rate: 9.2%

13. New Hampshire

• Economic Output: $104.4 billion
• Median Household Income: $83,449
• Poverty Rate: 7.4%

14. Utah

• Economic Output: $248.2 billion
• Median Household Income: $79,133
• Poverty Rate: 8.8%

15. Oregon

• Economic Output: $299.1 billion
• Median Household Income: $70,084
• Poverty Rate: 12.1%

16. Rhode Island

• Economic Output: $71.4 billion
• Median Household Income: $74,489
• Poverty Rate: 11.3%

17. Delaware

• Economic Output: $87.5 billion
• Median Household Income: $72,724
• Poverty Rate: 11.4%

18. Alaska

• Economic Output: $63.6 billion
• Median Household Income: $80,287
• Poverty Rate: 10.4%

19. North Dakota

• Economic Output: $73.3 billion
• Median Household Income: $68,131
• Poverty Rate: 10.7%

Understanding the Patterns: What Makes States Wealthy

Analyzing America’s richest states reveals interesting contrasts between total economic output and individual earning potential. States with the highest median household incomes—including Maryland ($91,431), New Jersey ($89,703), and Hawaii ($88,005)—don’t necessarily rank highest in total economic production. This distinction highlights how regional economic structures differ significantly.

The lowest poverty rates appear in New Hampshire (7.4%), Utah (8.8%), and Minnesota (9.2%), suggesting that these states have achieved more equitable distribution of economic benefits. Conversely, states with massive total economic output sometimes struggle with higher poverty rates, indicating concentration of wealth among larger populations and industries.

Geographic patterns emerge when examining the data. Northeastern states tend to show strong median household incomes coupled with established institutions and finance sectors. Western states display growing technological and innovation economies. Southern and Plains states often feature lower median incomes despite substantial economic output driven by agriculture, energy, and manufacturing.

Methodology: The Data Behind America’s Richest States Analysis

This comprehensive ranking draws from authoritative sources including the U.S. Census Bureau’s American Community Survey, the Regional GDP data released by the U.S. Census, Zillow’s housing value indices, and the Tax Policy Center’s revenue analysis. All data reflects information current as of mid-2023, providing a snapshot of each state’s economic position during that period.

By combining multiple economic indicators rather than relying on a single metric, this analysis produces a more nuanced understanding of which states truly represent America’s wealthiest economies. Economic strength encompasses not just raw production capacity, but also income stability, opportunity distribution, and poverty reduction—creating a fuller picture of regional prosperity.

The five-factor methodology weighs each component equally, acknowledging that true economic richness reflects both the scale of an economy and how well that prosperity extends to residents across different income levels. This holistic approach to identifying the richest states in America provides insight into where economic opportunity and growth are most concentrated in the United States.