America's Top 20 Richest States: A Deep Dive Into State Wealth Rankings

When economists evaluate the economic strength of states across the USA, they primarily look at gross domestic product (GDP) as the key metric. Understanding which states rank among the wealthiest in America requires examining not just total economic output, but also median household income levels and poverty rates—three interconnected factors that together paint a comprehensive picture of regional prosperity.

How State Wealth Is Measured: Understanding the Methodology

The U.S. Department of Commerce’s Bureau of Economic Analysis has established that measuring state wealth operates differently than measuring national wealth. Since each state generates an incredibly diverse mix of goods and services, economists rely on total expenditures and income metrics rather than simple GDP comparisons.

According to research that analyzed the relationship between median incomes, poverty rates, and state gross product, several states consistently demonstrate superior economic performance. The ranking of America’s top 20 richest states incorporates official data from the U.S. Census Bureau, the Tax Policy Center, and Zillow’s real estate valuations to create a comprehensive economic scorecard.

The Economic Titans: Top 5 Richest States

California commands the #1 position with a staggering gross state product of $3.6 trillion—a figure that would rank it among the world’s largest economies if independent. The state’s median household income stands at $84,097, though its poverty rate of 12.3% reflects the wide income inequality in America’s most populous state.

New York follows at #2 with a $2.53 trillion state economy and a median income of $75,157. As the nation’s financial hub, New York’s economic dominance stems from its concentrated financial services sector and major metropolitan centers.

Texas secures the #3 spot with a $2.4 trillion gross state product, though its median income of $67,321 is notably lower than coastal rivals—reflecting its more diverse, wage-distributed economy spanning energy, agriculture, and technology sectors. The state’s 14.0% poverty rate remains among the highest of the top-tier states.

Illinois ranks #4 with $1.03 trillion in state product and a median household income of $72,563. The state benefits from Chicago’s position as a major financial and logistics hub.

New Jersey claims the #5 position with $745.4 billion in economic output but showcases one of the highest median incomes at $89,703—indicating wealth concentration among residents, with a 9.8% poverty rate.

The Prosperous Middle Tier: States 6-15

Washington ($726 billion GSP, $82,400 median income) benefits from tech industry concentration in Seattle, balancing strong incomes with a 10.0% poverty rate.

Virginia ($649.4 billion GSP, $80,615 median income) leverages federal government presence and northern Virginia’s tech corridor to maintain economic vitality and a 9.9% poverty rate.

Maryland ($470.2 billion GSP, $91,431 median income) boasts the highest median household income across all major wealthy states, benefiting from Baltimore’s port economy and federal employment near Washington D.C.

Minnesota ($446.5 billion GSP, $77,706 median income) demonstrates strong economic health with only a 9.2% poverty rate, driven by Fortune 500 companies and healthcare sectors.

Colorado ($484.4 billion GSP, $80,184 median income) shows growing economic strength through tech expansion and tourism, with a 9.6% poverty rate.

Connecticut ($322 billion GSP, $83,572 median income) maintains wealth through financial services and insurance industries, despite its smaller population—reflecting high per-capita income concentration.

Utah ($248.2 billion GSP, $79,133 median income) stands out with the lowest poverty rate among major states at 8.8%, suggesting more equitable income distribution.

Oregon ($299.1 billion GSP, $70,084 median income) ranks lower in median income despite solid economic output, reflecting a more working-class oriented economy with a 12.1% poverty rate.

Delaware ($87.5 billion GSP, $72,724 median income) punches above its weight economically through its corporate-friendly legal environment and financial services sector.

New Hampshire ($104.4 billion GSP, $83,449 median income) demonstrates strong median income levels with a low 7.4% poverty rate—the best among all top-ranked states.

Emerging Wealth Centers: States 16-20

Rhode Island ($71.4 billion GSP, $74,489 median income) maintains solid economic status through manufacturing, healthcare, and tourism despite its small population.

Alaska ($63.6 billion GSP, $80,287 median income) benefits from energy sector dominance and represents one of the nation’s highest median incomes relative to state population size.

North Dakota ($73.3 billion GSP, $68,131 median income) leads agricultural and energy-producing states with a 10.7% poverty rate, reflecting the economic stability of rural commodity-based economies.

Key Patterns in America’s Wealthiest States

Examining the top 20 richest states in USA reveals several distinct patterns. Coastal states tend to cluster at the top, benefiting from major metropolitan areas, ports, and international trade. States with diversified economies—spanning technology, finance, manufacturing, and services—consistently outrank single-industry dependent regions.

States with the strongest median incomes aren’t always those with the largest gross state products. Maryland and New Hampshire demonstrate that smaller, more homogeneous state economies can generate exceptionally high per-capita wealth. Conversely, Texas and New York show how massive state economies can accommodate wider income disparities.

Poverty rates among the top 20 richest states range from 7.4% (New Hampshire) to 14.0% (Texas), underscoring that even America’s wealthiest states contain substantial low-income populations. This disparity reflects broader national income inequality trends and the uneven distribution of economic gains.

The rankings of the top richest states in America reflect data collected during 2023, incorporating official statistics from the U.S. Census Bureau, Commerce Department, Tax Policy Center, and real estate valuation services. As economic conditions evolve, these rankings may shift, but the fundamental drivers of state wealth—economic diversity, population size, industrial base, and geographic advantages—remain relatively stable factors shaping America’s regional economic landscape.