America's Top 20 Richest States: Where Economic Prosperity Leads the Nation

Understanding what makes a state economically prosperous requires looking beyond surface-level observations. Economists measure state wealth through multiple indicators including gross state product (GSP), median household income, and poverty rates. The top 20 richest states in USA demonstrate distinct economic patterns shaped by different industries, population sizes, and regional advantages.

How States Rank in Economic Strength

The methodology for evaluating the wealthiest and most prosperous states in USA involves analyzing data on each state’s gross state product, average home values, typical household income levels, tax revenue per capita, and poverty percentages. Based on 2022-2023 statistics compiled from the U.S. Census Bureau, Bureau of Economic Analysis, and other authoritative sources, a comprehensive ranking emerges that reflects each region’s economic performance.

Unlike national GDP calculations, measuring state economic output requires a different approach. Since state economies involve diverse goods and services, economists typically measure through total expenditures or income levels rather than applying the same methodology used for countries.

The Elite Five: Economic Powerhouses

1. California stands at the top with a gross state product of $3.6 trillion, median income of $84,097, and a 12.3% poverty rate. The state’s massive economy is driven by technology, entertainment, agriculture, and manufacturing sectors.

2. New York ranks second with a GSP of $2.53 trillion, median income of $75,157, and 13.5% poverty rate. New York’s economy centers on finance, media, and business services concentrated in the New York City metropolitan area.

3. Texas secures the third position with a GSP of $2.4 trillion, median income of $67,321, and a 14.0% poverty rate. Despite a lower median income, Texas’s massive economy benefits from oil and gas, technology, and manufacturing.

4. Massachusetts ranks fourth with a GSP of $688.3 billion, the highest median income of states in the top 20 at $89,026, and a 9.9% poverty rate. The state’s economy emphasizes education, healthcare, and advanced technology sectors.

5. Washington completes the top five with a GSP of $726 billion, median income of $82,400, and 10.0% poverty rate. Technology and aerospace industries significantly contribute to Washington’s strong economic output.

Mid-Tier Leaders: Strong Regional Economies

6. New Jersey demonstrates robust economic performance with $745.4 billion in GSP, $89,703 median income, and 9.8% poverty rate. The state benefits from proximity to major metropolitan areas and diverse industrial sectors.

7. Maryland shows $470.2 billion GSP with the second-highest median income at $91,431, and 9.2% poverty rate. Government services, healthcare, and biotechnology drive Maryland’s economy.

8. Connecticut contributes $322 billion to state GDP with $83,572 median income and 10.0% poverty rate. Finance, insurance, and manufacturing anchor Connecticut’s economy.

9. Colorado ranks with $484.4 billion GSP, $80,184 median income, and 9.6% poverty rate. Mining, tourism, and technology sectors support Colorado’s economic growth.

10. Virginia adds $649.4 billion to national economic output with $80,615 median income and 9.9% poverty rate. Government, defense, and technology industries dominate Virginia’s economy.

Solid Performers: Building Regional Strength

11-15. Other Top Performers include Illinois ($1.03 trillion GSP, $72,563 income, 11.8% poverty), Minnesota ($446.5 billion, $77,706 income, 9.2% poverty), Utah ($248.2 billion, $79,133 income, 8.8% poverty), New Hampshire ($104.4 billion, $83,449 income, 7.4% poverty), and Rhode Island ($71.4 billion, $74,489 income, 11.3% poverty).

16-20. Emerging Economies round out the top 20 richest states: Oregon ($299.1 billion, $70,084 income, 12.1% poverty), Delaware ($87.5 billion, $72,724 income, 11.4% poverty), Alaska ($63.6 billion, $80,287 income, 10.4% poverty), Hawaii ($98.2 billion, $88,005 income, 9.5% poverty), and North Dakota ($73.3 billion, $68,131 income, 10.7% poverty).

Key Takeaways on State Economic Rankings

The ranking of the top 20 richest states reveals important patterns. States with higher gross state products don’t always correlate with higher median incomes—Texas exemplifies this with enormous total economic output but below-average household income. Conversely, New Hampshire and Maryland show strong median incomes alongside respectable state GDP figures.

Poverty rates also vary significantly across the top 20 richest states in USA, ranging from New Hampshire’s lowest at 7.4% to Texas’s highest at 14.0%, suggesting that economic scale doesn’t automatically translate to universal prosperity within a state.

The geographic and industrial diversity among these states demonstrates that American economic strength is distributed across multiple regions, driven by varying sectors including technology, finance, energy, manufacturing, and government services.

Data Basis: Analysis based on 2022-2023 statistics including state GDP from US Census Regional Economic Data, home values from Zillow, household income from American Community Survey, tax revenue per capita from Tax Policy Center, and poverty data from US Census Bureau. Data compiled as of June 2023.