REVEALED: The Median Salary By State in 2025

If you think you know the richest states in America, think again. I’ve been a financial adviser and an accountant for 30 plus years and have helped thousands of people make sense of their money. And that’s what we’re going to do today. We’re going to show you where states stack up, some shocking data around them, and even strategies for you no matter where you’re at.

The nationwide median salary comes in at $60,250. This comes from the U.S. Census Bureau’s most recent American Community Survey. With that stat comes a huge question. How much is your salary influenced by where you live? Here are the median salaries across the country by state. We did exclude D.C. from this map, but we’ll get into why in just a minute.

Now, once you find your state, you may notice that it’s not that much higher or lower than the median of $60,250. In fact, the entire range of median income here falls from $50,000 to $80,000. It’s not like the average Californian is making two to three times as much as someone in West Virginia like you might think. And shockingly, there are no statistical outliers across the states. This means that the typical worker’s pay is remarkably consistent nationwide except for D.C.

The median salary in Washington, D.C. is $113,000. That’s way higher than the next highest of Massachusetts—over 30% higher, in fact. So why did we exclude it? First, D.C. itself has a high concentration of government and professional-level jobs. Think about the engineers for the DoD, but it doesn’t have an equal representation of things like retail or food service that would bring that median down. Second, this data is based on where folks live, not where they work. And D.C. has a very high cost of living. That means that anyone in those lower-income fields likely commutes to D.C. from surrounding areas, which inflates its median salary.

Let’s take a closer look at the top 10 and bottom 10 states specifically. In the top 10, we’ll see mostly states in the Northeast or on either coast. That makes sense. These are the hubs for higher-income industries like tech, finance, and entertainment. But then we also see a few states like Colorado or Alaska climb up there as well. The bottom 10 is largely occupied by states in the South. That does not tell the whole story, though, and I’m going to show you something that will shock you in just a second.

Looking at the gross median salary is fine at a glance. That six-figure job offer may seem super exciting at first until you realize it’s in San Francisco. And the cost of everything—I’m talking rent, food, even utilities—potentially could be 25 to 30% higher than in the Southeast. Cost of living coupled with purchasing power is the super important thing that you need to take into consideration.

So, let’s go back to those top 10 states. These numbers are completely different. In fact, six of the states weren’t even in the top 10 before. There are some that stayed, like of course Colorado and Washington, but there are also big surprises like North Dakota and Kansas. The states on this list are those with the most purchasing power. That’s where your dollars stretch the furthest.

On the flip side, let’s see what happens to the bottom 10 states adjusted for cost of living. This list completely changed from the raw numbers. States like New York, Massachusetts, Alaska, and California, which were in the top 10, are now some of the worst states for purchasing power due to their incredibly high cost of living. And Hawaii—it was right in the middle of the pack before with a median income of $60,800—but it’s the state with the highest cost of living, meaning those dollars really don’t go very far.

And that right there is the trade-off. A bigger paycheck doesn’t automatically mean a better life. So the question becomes, how do you make the most of where you are? Whether you’re in a state where every dollar stretches just a little bit further or one where it feels like money disappears faster than you can even earn it, there are ways to play to your strengths and guard against your weaknesses. Let’s talk about how to do that.

I wish I could give you a one-size-fits-all, but it’s a little more complicated than that. The best thing to do with your money may depend upon where you live. And let me explain.

You have to maximize your wins. If you’re living in one of those states with high purchasing power, this means capitalize on the opportunity. You’re in a state where your dollars actually go further. So don’t waste it. What does this look like? It looks like you keeping your lifestyle in check. Being in one of these states, it may be easier to buy a little too much house, rent too nice of an apartment, or go out and get a car payment, whatever it might be. But do not stretch yourself so thin on lifestyle that your financial future suffers. And take advantage of this opportunity by saving more now, not later, in case your cost of living does actually increase and limits saving potential in the future.

If you’re in one of those states lower on the list, there is a silver lining. If you can be good with a little, you’ll be great with a lot. This is the time to master your financial discipline because if you can master it here, you can master it anywhere. You may have to get creative though. You maximize your own skills. Maybe even pivoting to a more lucrative field is a perfectly viable strategy to stretch your dollars further in those areas.

But that’s one side of the equation. You have to minimize the weaknesses too. In high purchasing power states, complacency is the enemy. You want to avoid small pond syndrome. In a low-cost, easy-living environment, it’s tempting to relax, to think, I’m doing fine, and stop pushing yourself financially because nothing feels urgent. But that’s how stagnation sneaks in. You don’t have to chase more for more’s sake. You just have to stay intentional. Keep saving. Keep investing. Keep your habits sharp. And maybe more importantly, don’t get cute with it. When life feels affordable and you’ve got extra cash each month, it’s tempting to start chasing exciting returns—options trading, flipping houses, buying rental properties, whatever sounds like the next big thing for you. But that comfort can trick you into taking on risk you don’t fully understand. Remember, your biggest advantage in a high purchasing power state is stability and margin. Don’t gamble it away trying to speedrun your way to wealth. Keep it simple.

For low purchasing power states, this is where it gets tough. But we have strategies for you too. If you’re in a state or a city where your dollar just doesn’t go as far, don’t railroad yourself based on outdated financial milestones. It’s entirely possible—maybe even likely—that renting is actually more advantageous than buying in some of these high cost-of-living areas. It’s possible that public transportation is more affordable and equally effective as owning a car, especially in major metropolitan areas. I mean, if you have to pay for parking, what are we doing?

And don’t be afraid to get creative with your experiences too. We call this “bedazzle your basic life.” You can still create blossoming memories and travel to new exotic parts of the world, but it doesn’t have to be luxurious. It doesn’t have to be expensive, and it definitely doesn’t have to be debt-creating. My barebones trip to Italy in my 20s still holds the key landmarks and stories, but I stayed in more affordable accommodations, quickly learned the ins and outs of public transportation, and my luggage got a workout on those cobblestone streets.

But there are also things you can do regardless of where you live. Wherever you are, take the obvious wins. If your employer offers a 401(k) match, take advantage of that free money. Keep your emergency fund fully stocked up so life’s surprises don’t turn into desperate decisions with the side impact of high-interest debt, and automate your savings. Pay yourself first. Here’s a helpful breakdown of what to do with each dollar: https://moneyguy.com/learn/

What does all this mean for you? Well, that’s the hard part. You might be shocked to learn that the hardest part of building wealth is not making great money or cutting your expenses to the bone. The hardest part of building wealth is knowing what to do with it and being consistent. And I can explain.

There’s a chance that the thing standing between you and your future is the present. Life’s messy. We get it. Life is unpredictable. High purchasing power, low purchasing power, whatever. Jobs change. Families grow. Emergencies will show up uninvited. And in that noise, it’s easy to lose direction and to make decisions that are reactive instead of being intentional.

The solution is a plan. Not a generic one, but a plan that actually reflects your life. A California tech worker needs a different strategy than a teacher in Kansas. But both need a framework that fits their reality. That’s the superpower of knowing your own numbers, your own priorities, and your own tradeoffs. When you have a clear personal plan, you stop reacting and start directing. You stop guessing on what you should do and start building toward what actually matters to you—owning your time, doing things on your terms.

But that plan doesn’t have to be perfect. It just has to be yours, and it has to help you move forward. When you build around your own circumstances, money stops being a source of stress and becomes a tool for freedom.

If you want to know more about what to do with your next dollar, I want you to click right here: https://moneyguy.com/resources/know-your-number/

And as always, what small decision today are you going to make that helps you keep building toward your great big beautiful tomorrow?