Incomes spiked over 17% in 1 year for households in this state—it's not Florida, Texas, or New York
Nationwide, the median household income only grew by 4% between 2022 and 2023. But many states saw incomes change at faster rates — for better or worse.
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The national household median income grew by about 4% between 2022 and 2023, according to the latest Census Bureau Current Population Survey estimates.
That may not seem like much, but it's the first significant annual increase Americans have seen since 2019, the Bureau reports. From 2018 to 2019, the median household income nationally grew about 7%. But then it stayed around the same or dropped slightly — until 2023.
At the state level, income changes were even more drastic. South Dakota saw the largest increase both in dollars and percentage growth.
The median household income there was $81,740 in 2023, up from $69,850 in 2022, according to Census Bureau data. That's $11,890 more, or an increase of 17%.
South Dakota is among the fastest-growing states in the country, population-wise, according to a Pew analysis of Census Bureau data. Many of the people moving into the state appear to bring bigger salaries with them. South Dakota lands at No. 21 in a recent SmartAsset ranking of states with the highest net inflow of households earning $200,000 a year or more.
The six U.S. states where household incomes grew the most in one year all increased by over 10%. Two of the states with the largest annual increases — Arkansas and West Virginia — were, and continue to be, some of the lowest-earning states.
On the flip side, 11 states saw their incomes fall in 2023.
Maryland experienced the largest decrease to its median household income at 9%, and it is the only state to experience a five-figure decline. The state's median household income, $102,000, remained one of the highest in the country in 2023. Still, that's down $10,500 from 2022.
High-earners appear to be leaving the state in droves: Maryland lost over 2,000 households that earn at least $200,000 between 2021 and 2022, according to SmartAsset. The state's economy has been fairly stalled since 2017, according to a 2023 report from the state's comptroller.
In 2024, Maryland fell nine spots from the previous year to No. 31 in CNBC's annual best states for business rankings. That's mostly due to declines in the state's infrastructure and business-friendliness.
The state with the next-worst decline in incomes, North Dakota, experienced a 6% decrease to its household median.
Here's where incomes fell the most.
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