Budgeting

Which US State Has The Lowest Average Income?

Mississippi ranks dead last in the U.S. with the lowest average income, both when compared by per-person standards, and by median household standards.

Aug 18, 2025

Biloxi, a city in Harrison County, Mississippi.
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Average income can be broken up in two ways; per person and per household. Per person calculations often use the official yardstick of per capita personal income. This adds up all of the earnings in a state over the course of a year and divides the total by the number of residents. Using this measure, Mississippi ranks the lowest, at about $52,017 in 2024, per March 2025 data from the U.S. Bureau of Economic Analysis. When compared with other areas in America, this per-person income data showed significant disparities. The District of Columbia, for example, was the highest at about $108,233. Next were Massachusetts at $93,927 and Connecticut at $93,235, states with some of the highest electricity bills in America. Other states near the upper range included New York at $85,733 and California at $85,518. At the other end with Mississippi was West Virginia at $55,138 and New Mexico at $57,652.

If, on the other hand, you define average income by median household income, which arranges all households — families and non-families — from lowest to highest income in order to identify the household in the middle, Mississippi is still last. The state boasted a median household income of only about $54,203 in 2023, according to the Census Bureau's American Community Survey.

Why Mississippi ranks lowest

A Welcome to Mississippi roadway sign
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Mississippi's wages are well below the national average. In Q4 2024, the Bureau of Labor Statistics reported that the average worker in Mississippi earned about $1,023 per week, while the U.S. average was about $1,507, a difference of 32%. This is the lowest state wage and helps to explain why Mississippi ranks last in average income measures. Mississippi's lower pay is ultimately tied to its problematic job market — the state has fewer large, high-paying job hubs than most states. Its two largest counties hold only about 16.9% of all jobs in the state, while the 369 biggest counties nationwide hold around 73.3% of all U.S. jobs, per BLS data. Pay in Mississippi's main metro is lower, too. As of May 2024, workers in the Jackson area earned about $25.86 an hour, compared with $32.66 across the country.

With that said, the price of housing does somewhat compensates for the lower paychecks. The Bureau of Economic Analysis reported a 2023 housing-rent index of 54.9, with 100 representing the U.S. average. That means an apartment renting for $1,500 in one state would only cost about $825 in Mississippi. Also, Mississippi's overall cost index was 87.3. In fact, Mississippi is one of the cheapest states to buy a house, and is also one of the states with the cheapest assisted living costs for seniors.

Prices, rates, and rules change. This is reporting, not personal financial, tax, or investment advice.