When it comes to making money, times are tough no matter where you live. In late May, almost 40 million Americans had claimed unemployment benefits. Worse yet, according to a new survey from the Pew Research Center published on Sept. 24, half of Americans who lost their job during the pandemic have yet to find another one. But the truth is, there are still some states where you can make money—you just have to know where to look.
To figure out where you can improve your financial situation right now, we pulled together data from a variety of sources and crunched the numbers using our exclusive algorithm to determine each state’s score on our Money Making Index. We consulted the U.S. Census Bureau’s latest data on median household income, how much each state charges for income tax in 2020, and the unemployment rate as of August 2020, per the U.S. Bureau of Labor Statistics. We also took into account the cost of living data from the World Population Review’s index, which factors in expenses ranging from groceries and utilities to the average cost of transportation. Altogether, this data painted a picture not just of how much the average resident is likely to make in each state (and how many job prospects they have), but of how much spending they would be doing, too.
Taking all of that into consideration, one state stood out as the strongest when it comes to where you can take home a fat paycheck. It doesn’t necessarily have the highest average household income in the country, but its cost of living is very low and it has one of the lowest unemployment rates nationwide in the midst of a pandemic that has decimated the economy. Combine that with its relatively low income tax and this state stands out as the overall strongest option for those looking to make some serious money.
Read on for the top 20 states where you can make bank to find out the best of the bunch. And for more money matters by state, check out This Is the State Where Your Money Is Worth the Least.
20 | Connecticut
ShutterstockMedian Household Income: $72,812
State Income Tax: 3 percent-6.99 percent
Unemployment Rate: 8.1 percent
Cost of Living Index Score: 127.7
Money Making Index Score: 49.39
And for more on who's making the most money in this state and every other one, check out This Is the Richest Person in Every State.
19 | Arizona
ShutterstockMedian Household Income: $62,283
State Income Tax: 2.59 percent-4.50 percent
Unemployment Rate: 5.7 percent
Cost of Living Index Score: 97
Money Making Index Score: 49.83
18 | Minnesota
ShutterstockMedian Household Income: $71,817
State Income Tax: 5.35 percent-9.85 percent
Unemployment Rate: 7.4 percent
Cost of Living Index Score: 101.6
Money Making Index Score: 50.01
And for another facet of life where Minnesota is suffering, check out These Are the States Where COVID Cases Are Skyrocketing.
17 | Texas
ShutterstockMedian Household Income: $59,785
State Income Tax: 0.00 percent
Unemployment Rate: 6.8 percent
Cost of Living Index Score: 91.5
Money Making Index Score: 50.98
And if you're a proud Texan or want to be one, here are the 25 Things People in Texas Are Tired of Hearing.
16 | Indiana
iStockMedian Household Income: $59,892
State Income Tax: 3.23 percent
Unemployment Rate: 6.4 percent
Cost of Living Index Score: 90
Money Making Index Score: 52.64
15 | Illinois
ShutterstockMedian Household Income: $70,145
State Income Tax: 4.95 percent
Unemployment Rate: 11.0 percent
Cost of Living Index Score: 94.5
Money Making Index Score: 53.32
And if you want to make sure you're saying this state correctly, check out This Is the Most Mispronounced State in the U.S.
14 | South Dakota
iStockMedian Household Income: $59,463
State Income Tax: 0.00 percent
Unemployment Rate: 4.8 percent
Cost of Living Index Score: 99.8
Money Making Index Score: 54.83
13 | Alaska
iStockMedian Household Income: $68,734
State Income Tax: 0.00 percent
Unemployment Rate: 7.4 percent
Cost of Living Index Score: 129.9
Money Making Index Score: 54.92
But unfortunately, it's not all great news in Alaska. Find it among the list of The Most Dangerous States in the U.S.
12 | Vermont
iStockMedian Household Income: $70,066
State Income Tax: 3.35 percent-8.75 percent
Unemployment Rate: 4.8 percent
Cost of Living Index Score: 114.5
Money Making Index Score: 55.70
11 | Wyoming
iStockMedian Household Income: $62,539
State Income Tax: 0.00 percent
Unemployment Rate: 6.6 percent
Cost of Living Index Score: 89.3
Money Making Index Score: 56.15
And if you want more state guides and helpful facts, sign up for our daily newsletter.
10 | Iowa
ShutterstockMedian Household Income: $68,718
State Income Tax: 0.33 percent-8.53 percent
Unemployment Rate: 6.0 percent
Cost of Living Index Score: 90.1
Money Making Index Score: 58.20
9 | North Dakota
ShutterstockMedian Household Income: $66,505
State Income Tax: 1.1 percent-2.9 percent
Unemployment Rate: 5.0 percent
Cost of Living Index Score: 98.8
Money Making Index Score: 61.00
8 | Nebraska
iStockMedian Household Income: $67,575
State Income Tax: 2.46 percent-6.84 percent
Unemployment Rate: 4.0 percent
Cost of Living Index Score: 90.8
Money Making Index Score: 61.90
7 | Colorado
iStockMedian Household Income: $73,034
State Income Tax: 4.63 percent
Unemployment Rate: 6.7 percent
Cost of Living Index Score: 105.6
Money Making Index Score: 68.33
6 | Massachusetts
ShutterstockMedian Household Income: $86,345
State Income Tax: 5.00 percent
Unemployment Rate: 11.3 percent
Cost of Living Index Score: 131.6
Money Making Index Score: 69.30
5 | Virginia
ShutterstockMedian Household Income: $77,151
State Income Tax: 2 percent-5.75 percent
Unemployment Rate: 6.1 percent
Cost of Living Index Score: 100.7
Money Making Index Score: 69.54
4 | Washington
ShutterstockMedian Household Income: $79,726
State Income Tax: 0.00 percent
Unemployment Rate: 8.5 percent
Cost of Living Index Score: 110.7
Money Making Index Score: 71.95
3 | Maryland
Sean Pavone / ShutterstockMedian Household Income: $86,223
State Income Tax: 2 percent-5.75 percent
Unemployment Rate: 6.9 percent
Cost of Living Index Score: 129.7
Money Making Index Score: 74.94
2 | New Hampshire
ShutterstockMedian Household Income: $81,346
State Income Tax: 5.00 percent
Unemployment Rate: 6.5 percent
Cost of Living Index Score: 109.7
Money Making Index Score: 80.58
1 | Utah
ShutterstockMedian Household Income: $77,067
State Income Tax: 4.95 percent
Unemployment Rate: 4.1 percent
Cost of Living Index Score: 98.4
Money Making Index Score: 83.62
