How Much Income Inequality Exists in Every State

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.
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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.
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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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
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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
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
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
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
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
For You:
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
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
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
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
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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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
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
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
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
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
Be Aware:
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
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
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
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
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
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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
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
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
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
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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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
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
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
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
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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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
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
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
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
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
Trending Now:
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
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
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
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
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
View More:
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
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
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
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
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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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
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
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
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

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