Higher pay, higher prices
States where incomes are highest are also where everyday prices are highest. How much of the gap does the cost of living eat?
States with higher Price Level tend to have higher Median Household Income.
Very strong link: a correlation of 0.88 across 51 states.CorrelationHow closely two metrics move together, from −1 to +1. Near +1: both rise together. Near −1: one rises as the other falls. Near 0: no clear link.More in the glossary →
A higher salary in an expensive state does not stretch as far. The Bureau of Economic Analysis measures each state’s price level against the national average, which lets you see how much of a state’s income advantage its prices take back. Rankodex can adjust wages for this anywhere on the site with the cost-of-living switch.
Each dot in the chart is one of 51 states. The correlation between Price Level and Median Household Income is 0.88, a very strong relationship: about 78% of the differences in Median Household Income from place to place line up with Price Level. Ranked instead of measured, the link is 0.88.
The highest Median Household Income is in District of Columbia ($109,870), Massachusetts ($103,960) and Maryland ($103,678); the lowest is in Mississippi ($56,447), West Virginia ($59,608) and Louisiana ($60,756). The median state has $77,485 for Median Household Income and 97.1 for Price Level.
The biggest exceptions sit furthest from the trend line. Utah, Iowa and North Dakota have a much higher Median Household Income than their Price Level would predict, while Florida, New York and Oregon have a much lower one.
This is a comparison across places, not proof that one causes the other: both can follow from something else, such as income, age or how urban a place is. Price Level is from 2024 and Median Household Income from 2024.
Highest Median Household Income
| Place | Median Household Income | Price Level |
|---|---|---|
| District of Columbia | $109,870 | 109.9 |
| Massachusetts | $103,960 | 105.8 |
| Maryland | $103,678 | 105.0 |
| New Jersey | $103,556 | 108.8 |
| Hawaii | $100,389 | 110.0 |
Lowest Median Household Income
| Place | Median Household Income | Price Level |
|---|---|---|
| Mississippi | $56,447 | 87.0 |
| West Virginia | $59,608 | 89.5 |
| Louisiana | $60,756 | 88.2 |
| Arkansas | $60,773 | 86.9 |
| Kentucky | $63,726 | 90.2 |
Explore it yourself
- Open this comparison in the interactive chart to highlight places, change the metrics or colour by party.
- Full ranking and sources for Price Level
- Full ranking and sources for Median Household Income