While wage growth has been notable in recent years across the United States, many households are still grappling with the lingering effects of high inflation. One often-overlooked factor in salary comparisons is geography. Not only do professions and skills matter, but where you live can significantly influence your income.
Wage Growth and Regional Disparities
Data from the Bureau of Labor Statistics (BLS) released in March 2025 shows that the average hourly wage in the United States continues to climb. However, that growth is uneven. Urban centers and coastal states generally report higher earnings, while many southern and midwestern states lag behind.
At the top of the list is Washington, D.C., where workers earn an average of $52.89 per hour, far exceeding the national average. This is largely due to a high concentration of federal, legal, and professional jobs in the area.
Trailing just behind are Massachusetts ($42.50), Washington state ($41.82), and California ($40.93)—all of which are hubs for tech, biotech, and finance industries.
In contrast, states like Mississippi ($28.25) and Louisiana ($29.17) sit at the bottom of the earnings spectrum, the only two states with average hourly wages under $30.
The National Average Salary in 2025
According to the latest data from the Social Security Administration (SSA), the average salary in the U.S. stands at $66,620 per year. This number, however, can be misleading when taken without context. High-income areas inflate the average, while the median salary—often considered a better measure of typical earnings—is usually lower and varies more by state.
How Salary Varies by State
Below is a comprehensive list of both average and median annual salaries by state, compiled from the U.S. Census Bureau and Forbes. These figures are based on single-income households and reflect broad economic trends across the country:
- Alabama $53,394 $59,605
- Alaska $66,130 $82,512
- Arizona $63,045 $66,340
- Arkansas $51,251 $54,658
- California $76,960 $74,819
- Colorado $71,968 $77,331
- Connecticut $73,736 $81,285
- $65,998
- Florida $60,216 $62,973
- Georgia $61,256 $62,468
- Hawaii $65,042 $78,745
- Idaho $55,640 $68,781
- Illinois $67,122 $66,950
- Indiana $56,410 $60,351
- Iowa $56,410 $61,283
- Kansas $56,264 $64,518
- Kentucky $54,018 $57,509
- Louisiana $53,435 $53,821
- Maine $60,008 $66,369
- Maryland $73,632 $81,293
- Massachusetts $80,330 $81,170
- Michigan $60,590 $64,579
- Minnesota $66,706 $72,319
- Mississippi $47,569 $51,554
- Missouri $57,574 $59,605
- Montana $55,910 $65,242
- Nebraska $58,074 $63,813
- Nevada $58,906 $64,412
- New Hampshire $66,102 $84,017
- New Jersey $73,986 $83,102
- New Mexico $57,512 $56,766
- New York $78,624 $69,135
- North Carolina $59,717 $61,811
- North Dakota $59,051 $66,813
- Ohio $59,883 $61,617
- Oklahoma $53,456 $55,362
- Oregon $66,706 $70,266
- Pennsylvania $61,922 $66,923
- Rhode Island $66,602 $72,515
- South Carolina $54,246 $59,661
- South Dakota $53,227 $63,862
- Tennessee $56,035 $59,052
- Texas $61,235 $61,460
- Utah $61,069 $78,917
- Vermont $62,774 $65,712
- Virginia $70,054 $75,756
- Washington $78,125 $86,558
- West Virginia $52,208 $57,979
- Wisconsin $59,509 $66,106
- Wyoming $57,928 $61,866
Why Location Matters More Than You Think
Even if you hold the same position or perform the same job duties, your salary may look dramatically different depending on your location. States with higher average salaries usually coincide with higher living costs. For example, while wages are higher in California and New York, so too are housing, transportation, and healthcare costs.
On the other hand, while Mississippi and Arkansas have lower average wages, the overall cost of living is also significantly less, allowing residents to maintain a comparable standard of living with fewer dollars.
Conclusion
When evaluating your income or planning a move, it’s essential to consider not just your potential salary, but also the broader economic environment of your destination. The wage gap across states is a reflection of local industries, education levels, living costs, and job demand.
Understanding these differences can help workers make better financial decisions and advocate for fair compensation based on where they live and work.
