New Report Ranks New York Among Top States for Income

A new report from WalletHub ranks the states where Americans earn the most, and the results are a study in contrast. While some states maintain a strong middle class and equitable income distribution, others reflect a widening gap between high earners and those struggling to get by.

The Study: Measuring Income From Top to Bottom

The analysis looked at income across three income brackets in all 50 states plus the District of Columbia:

• The average income of the top 5% of earners

• The median income for all residents

• The average income of the bottom 20% of earners

Each number was adjusted for the cost of living to give a clearer sense of financial health. What’s notable about the results isn’t just where states rank, but why.

Where New York Ranks

New York ranks #3 overall in the 2025 income breakdown, behind only Virginia and New Jersey. That’s a strong showing, but the data reveals a more complicated story.

New York has the highest-earning top 5% in the country, bringing in an average of $575,505 per year. This puts it well ahead of other high-income states like California and Massachusetts.

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Median income in New York also holds up well. At $95,033, it ranks 15th nationwide, suggesting that, for many, the paycheck supports a reasonably stable lifestyle, depending on location.

But at the other end of the scale, the picture changes.

The bottom 20% of earners in New York average just $13,647 per year. That places New York 45th out of 51, among the worst in the country.

A Tale of Two Incomes

What emerges from the data is a stark contrast between those at the top and those at the bottom of the economic ladder. New York performs well in rankings because the top earners skew the average. But the state also has one of the widest income gaps in the nation.

This isn’t new for New Yorkers. The state’s major metro areas are economic engines, especially in industries like finance, tech, media, and healthcare. Those in high-paying roles benefit from robust salaries and career mobility.

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Yet for working-class residents, especially in areas hit hard by inflation, housing shortages, or underemployment, the economic reality can feel much less optimistic. The same cost of living that makes high salaries necessary also means a modest income goes much less far than it might elsewhere.

Where Other States Stand

A few highlights from the report:

• Virginia ranked #1 overall, with strong income levels across all groups

• New Jersey came in second

• Connecticut and Washington rounded out the top five

• At the bottom of the list were New Mexico, Mississippi, and West Virginia, where both high and low earners bring in significantly less than the national average