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How Much Income Inequality Exists in Every State

June 17, 2025 — 07:02 am EDT

Written by Heather Taylor for GOBankingRates->

Across 41 states, the bottom 20% make less than $20,000 on average. Meanwhile, the top 20% earn more than $250,000 in 25 states — accounting for half of America. While it’s not exactly a new development to hear income inequality persists in every state, recent data compiled by GOBankingRates reveals the lines between massive wealth and abject poverty are increasingly stark.

Learn More: What Is the Estimated Median Income for the Upper-Middle Class in 2025?

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GOBankingRates was able to determine the amount of income inequality by sourcing the 2023 American Community Survey for each state’s Gini index, which summarizes the dispersion of income across the country. The Gini coefficient ranges from 0 (perfect equality) to 1 (perfect inequality). No state received a 0.

Additional factors analyzed include the bottom 20% of earners’ average income, the top 20% of earners’ average income, the top 5% of earners’ average income and top 5% of earners’ share of wealth.

New York City Skyline with Empire State Building and Midtown Manhattan Skyscrapers. stock photo

Key Findings

The bottom 20% earn less than $20,000 in 41 states.
By sharp comparison, the top 20% earn $300,000 in 10 states: New York (#1), Connecticut (#2), California (#4), Massachusetts (#5), New Jersey (#10), Virginia (#20), Washington (#25), Colorado (#32), Maryland (#34) and Hawaii (#42).
New York has the most income inequality. New York is also one of five states where the top 5% earn $600,000 on average. Connecticut, California, Massachusetts and New Jersey round out the remaining states.
Louisiana ranks third. While California, Connecticut, Massachusetts and New York are all well known for their expense, Louisiana is by far the lowest cost state to rank in the top five for income inequality.
The top 5% have a 25% share of wealth in New York and Connecticut. Across the United States, this amounts to more than 20% in 47 states. Alaska is the only state where the top 5% have less than a 20% share of wealth — but at 19.4% it won’t be long before the top 5% has a 20%+ share of wealth in every US state.

Ranked from highest to lowest Gini index, keep reading to view the amount of income inequality in every state.

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New York, New York, USA - January 10, 2024: Busy day on Time Square in January.

1. New York

Bottom 20% average income: $15,334
Top 20% average income: $342,150
Top 5% average income: $646,648
Top 5% share of wealth: 25.7%
Gini index (0-1): 0.5152

The Soldiers and Sailors Memorial Arch in Hartford, Connecticut on an overcast day.

2. Connecticut

Bottom 20% average income: $18,939
Top 20% average income: $358,875
Top 5% average income: $676,016
Top 5% share of wealth: 25%
Gini index (0-1): 0.4984

Lafayette is a city in and the parish seat of Lafayette Parish, Louisiana.

3. Louisiana

Bottom 20% average income: $11,406
Top 20% average income: $223,489
Top 5% average income: $394,301
Top 5% share of wealth: 23%
Gini index (0-1): 0.4944

the skyline of los angeles during sunset.

4. California

Bottom 20% average income: $19,606
Top 20% average income: $356,382
Top 5% average income: $638,872
Top 5% share of wealth: 23.4%
Gini index (0-1): 0.4887

Springfield, Massachusetts, USA stock photo

5. Massachusetts

Bottom 20% average income: $18,796
Top 20% average income: $364,076
Top 5% average income: $642,510
Top 5% share of wealth: 22.8%
Gini index (0-1): 0.4877

The Hillsboro Inlet separating the city of Pompano Beach to the south and Lighthouse Point community of Deerfield Beach to the north shot during a helicopter photo flight from an altitude of about 200 feet over the Atlantic Ocean.

6. Florida

Bottom 20% average income: $16,315
Top 20% average income: $266,051
Top 5% average income: $499,610
Top 5% share of wealth: 24.5%
Gini index (0-1): 0.4849

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7. Mississippi

Bottom 20% average income: $11,083
Top 20% average income: $197,470
Top 5% average income: $346,882
Top 5% share of wealth: 22.5%
Gini index (0-1): 0.4840

Little Rock, Arkansas, USA skyline on the river at twilight.

8. Arkansas

Bottom 20% average income: $13,044
Top 20% average income: $212,270
Top 5% average income: $385,873
Top 5% share of wealth: 23.4%
Gini index (0-1): 0.4807

Downtown Chicago Skyscraper Cityscape along the Chicago River.

9. Illinois

Bottom 20% average income: $16,674
Top 20% average income: $289,355
Top 5% average income: $521,013
Top 5% share of wealth: 23.1%
Gini index (0-1): 0.4802

Jersey City, NJ USA - February 24 2021: The eight story Pier Apartment complex at Harborside in Jersey City has a view of the Lower Manhattan NYC skyline just across across the Hudson River.

10. New Jersey

Bottom 20% average income: $20,700
Top 20% average income: $359,314
Top 5% average income: $632,685
Top 5% share of wealth: 22.6%
Gini index (0-1): 0.4800

This is Big Spring Park in Huntsville, Alabama during the spring time.

11. Alabama

Bottom 20% average income: $12,871
Top 20% average income: $219,518
Top 5% average income: $384,038
Top 5% share of wealth: 22.3%
Gini index (0-1): 0.4783

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12. Georgia

Bottom 20% average income: $15,866
Top 20% average income: $264,953
Top 5% average income: $472,175
Top 5% share of wealth: 22.8%
Gini index (0-1): 0.4779

Covington is a city in Kenton County, Kentucky, in the Upland South region of the United States.

13. Kentucky

Bottom 20% average income: $13,043
Top 20% average income: $219,022
Top 5% average income: $395,106
Top 5% share of wealth: 22.9%
Gini index (0-1): 0.4776

Santa Fe, New Mexico, USA downtown skyline at dusk.

14. New Mexico

Bottom 20% average income: $12,418
Top 20% average income: $216,944
Top 5% average income: $373,030
Top 5% share of wealth: 21.8%
Gini index (0-1): 0.4774

Downtown Greenville, SC South Carolina Skyline Cityscape at Sunrise.

15. South Carolina

Bottom 20% average income: $14,418
Top 20% average income: $237,160
Top 5% average income: $428,094
Top 5% share of wealth: 23.1%
Gini index (0-1): 0.4773

Skyline of downtown Dallas Texas USA with green park.

16. Texas

Bottom 20% average income: $16,872
Top 20% average income: $272,904
Top 5% average income: $487,366
Top 5% share of wealth: 22.8%
Gini index (0-1): 0.4765

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Downtown Raleigh, North Carolina, USA Drone Skyline Aerial stock photo

17. North Carolina

Bottom 20% average income: $15,742
Top 20% average income: $249,042
Top 5% average income: $446,248
Top 5% share of wealth: 22.9%
Gini index (0-1): 0.4760

Memphis, Tennessee, USA Downtown Skyline stock photo

18. Tennessee

Bottom 20% average income: $15,072
Top 20% average income: $238,504
Top 5% average income: $435,202
Top 5% share of wealth: 23.3%
Gini index (0-1): 0.4755

The aerial view of the City Hall and Downtown District of Scranton at sunset.

19. Pennsylvania

Bottom 20% average income: $16,609
Top 20% average income: $266,309
Top 5% average income: $473,542
Top 5% share of wealth: 22.6%
Gini index (0-1): 0.4737

20. Virginia

Bottom 20% average income: $19,781
Top 20% average income: $316,724
Top 5% average income: $547,015
Top 5% share of wealth: 21.8%
Gini index (0-1): 0.4716

The Parkersburg–Belpre Bridge is a four-lane cantilever bridge that connects Parkersburg, West Virginia to Belpre, Ohio.

21. West Virginia

Bottom 20% average income: $12,333
Top 20% average income: $197,286
Top 5% average income: $340,667
Top 5% share of wealth: 21.6%
Gini index (0-1): 0.4697

22. Oklahoma

Bottom 20% average income: $14,390
Top 20% average income: $219,134
Top 5% average income: $389,979
Top 5% share of wealth: 22.3%
Gini index (0-1): 0.4675

Akron, United States - May 29, 2014: Downtown Akron skyline with the words

23. Ohio

Bottom 20% average income: $15,460
Top 20% average income: $237,659
Top 5% average income: $420,966
Top 5% share of wealth: 22.2%
Gini index (0-1): 0.4674

Reno, USA - May 31, 2016: Reno, known as The Biggest Little City in the World, is famous for it's casinos, and is the birthplace of the gaming corporation Harrah's Entertainment.

24. Nevada

Bottom 20% average income: $17,024
Top 20% average income: $258,414
Top 5% average income: $470,305
Top 5% share of wealth: 22.9%
Gini index (0-1): 0.4669

25. Washington

Bottom 20% average income: $21,589
Top 20% average income: $325,947
Top 5% average income: $574,868
Top 5% share of wealth: 22.2%
Gini index (0-1): 0.4660

26. Missouri

Bottom 20% average income: $15,897
Top 20% average income: $234,836
Top 5% average income: $420,563
Top 5% share of wealth: 22.4%
Gini index (0-1): 0.4652

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27. Michigan

Bottom 20% average income: $15,909
Top 20% average income: $240,130
Top 5% average income: $419,606
Top 5% share of wealth: 21.8%
Gini index (0-1): 0.4639

28. Montana

Bottom 20% average income: $16,750
Top 20% average income: $237,041
Top 5% average income: $430,052
Top 5% share of wealth: 22.7%
Gini index (0-1): 0.4634

Tucson Arizona at night framed by saguaro cactus and Santa Catalina Mountains.

29. Arizona

Bottom 20% average income: $17,609
Top 20% average income: $259,767
Top 5% average income: $461,363
Top 5% share of wealth: 22.2%
Gini index (0-1): 0.4624

30. Oregon

Bottom 20% average income: $17,956
Top 20% average income: $269,437
Top 5% average income: $470,649
Top 5% share of wealth: 21.7%
Gini index (0-1): 0.4621

31. Rhode Island

Bottom 20% average income: $17,075
Top 20% average income: $276,548
Top 5% average income: $477,607
Top 5% share of wealth: 21.2%
Gini index (0-1): 0.4607

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Aerial View of Colorado Springs with Autumn Colors.

32. Colorado

Bottom 20% average income: $21,409
Top 20% average income: $307,101
Top 5% average income: $538,026
Top 5% share of wealth: 21.7%
Gini index (0-1): 0.4576

Lewiston is a city in Androscoggin County in Maine, and the second-largest city in the state.

33. Maine

Bottom 20% average income: $16,977
Top 20% average income: $237,505
Top 5% average income: $418,624
Top 5% share of wealth: 21.7%
Gini index (0-1): 0.4567

Row of colorful, red, yellow, blue, white, green painted residential townhouses, homes, houses with brick patio gardens in summer.

34. Maryland

Bottom 20% average income: $21,505
Top 20% average income: $327,400
Top 5% average income: $554,828
Top 5% share of wealth: 20.7%
Gini index (0-1): 0.4560

35. Nebraska

Bottom 20% average income: $18,092
Top 20% average income: $247,090
Top 5% average income: $447,231
Top 5% share of wealth: 22.3%
Gini index (0-1): 0.4556

Wichita, Kansas, USA downtown skyline at dusk.

36. Kansas

Bottom 20% average income: $17,493
Top 20% average income: $240,712
Top 5% average income: $425,080
Top 5% share of wealth: 21.8%
Gini index (0-1): 0.4555

Fargo, North Dakota, USA - June 12, 2017: Daytime view of the Fargo Theatre along Broadway N in the Downtown Historic District.

37. North Dakota

Bottom 20% average income: $17,522
Top 20% average income: $246,410
Top 5% average income: $437,736
Top 5% share of wealth: 21.8%
Gini index (0-1): 0.4551

Vermont, United States of America – October 20, 2017: View across Lake Bomoseen during Autumn.

38. Vermont

Bottom 20% average income: $18,239
Top 20% average income: $252,655
Top 5% average income: $434,633
Top 5% share of wealth: 21%
Gini index (0-1): 0.4522

Indianapolis, Indiana, USA skyline over Monument Circle.

39. Indiana

Bottom 20% average income: $16,520
Top 20% average income: $226,387
Top 5% average income: $396,992
Top 5% share of wealth: 21.4%
Gini index (0-1): 0.4520

40. Minnesota

Bottom 20% average income: $21,058
Top 20% average income: $282,691
Top 5% average income: $497,204
Top 5% share of wealth: 21.5%
Gini index (0-1): 0.4500

Wilmington is the largest city in the state of Delaware, United States and is located at the confluence of the Christina River and Brandywine Creek.

41. Delaware

Bottom 20% average income: $19,803
Top 20% average income: $266,218
Top 5% average income: $463,843
Top 5% share of wealth: 21.2%
Gini index (0-1): 0.4495

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People jogging, cycling and walking along Waikiki Beach.

42. Hawaii

Bottom 20% average income: $21,178
Top 20% average income: $310,254
Top 5% average income: $526,148
Top 5% share of wealth: 20.5%
Gini index (0-1): 0.4495

43. Wyoming

Bottom 20% average income: $17,308
Top 20% average income: $235,402
Top 5% average income: $417,388
Top 5% share of wealth: 21.4%
Gini index (0-1): 0.4483

Rapid City is the second most populous city in South Dakota and the county seat of Pennington County.

44. South Dakota

Bottom 20% average income: $17,834
Top 20% average income: $230,785
Top 5% average income: $414,593
Top 5% share of wealth: 21.8%
Gini index (0-1): 0.4470

Des Moines, Iowa skyline from the state capital at sunset.

45. Iowa

Bottom 20% average income: $17,958
Top 20% average income: $231,690
Top 5% average income: $405,907
Top 5% share of wealth: 21.2%
Gini index (0-1): 0.4447

46. Idaho

Bottom 20% average income: $19,548
Top 20% average income: $240,204
Top 5% average income: $431,824
Top 5% share of wealth: 21.9%
Gini index (0-1): 0.4442

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The Milwaukee skyline sits behind the view of the Milwaukee River.

47. Wisconsin

Bottom 20% average income: $18,642
Top 20% average income: $238,669
Top 5% average income: $418,668
Top 5% share of wealth: 21.1%
Gini index (0-1): 0.4434

Plymouth, New Hampshire, USA - May 18, 2016: Daytime view of Rounds Hall Tower on the campus of Plymouth State University.

48. New Hampshire

Bottom 20% average income: $23,065
Top 20% average income: $297,363
Top 5% average income: $507,282
Top 5% share of wealth: 20.4%
Gini index (0-1): 0.4414

Ketchikan, Alaska - September 30 2017: Night aerial/drone view on Front Street, downtown with Welcome to Alaska 1st City neon sign, buildings, vehicles driving and parked, people walking and standing.

49. Alaska

Bottom 20% average income: $21,333
Top 20% average income: $270,877
Top 5% average income: $445,464
Top 5% share of wealth: 19.4%
Gini index (0-1): 0.4333

Salt Lake City is the capital and the most populous municipality of the U.

50. Utah

Bottom 20% average income: $24,390
Top 20% average income: $276,288
Top 5% average income: $483,169
Top 5% share of wealth: 20.6%
Gini index (0-1): 0.4277

Methodology: For this piece GOBankingRates looked at all states and found the following factors for each state: (1) Gini Index measuring income inequality (definition below); (2) bottom 20% of earners’ average income; (3) top 20% of earners’ average income; (4) top 5% of earners’ average income; (5) bottom 20% of earners’ share of wealth; (6) top 20% of earners’ share of wealth; (7) top 5% of earners’ share of wealth; (8) median household income; and (9) average household income. For rankings only factor (1) was considered. All data was sourced from the 2023 American Community Survey as conducted by the U.S. Census Bureau. All data was collected on and is up to date as of May 29, 2025.

Gini Index: The Gini Index is a summary measure of income inequality. The Gini coefficient incorporates the detailed shared data into a single statistic, which summarizes the dispersion of income across the entire income distribution. The Gini coefficient ranges from 0, indicating perfect equality (where everyone receives an equal share), to 1, perfect inequality (where only one recipient or group of recipients receives all the income). The Gini is based on the difference between the Lorenz curve (the observed cumulative income distribution) and the notion of a perfectly equal income distribution.

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This article originally appeared on GOBankingRates.com: How Much Income Inequality Exists in Every State

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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