States With the Least Disposable Income

from Captain Experiences, Feb 14, 2024 (excerpts)

Many factors—like the local cost of living and interest rates—can affect an individual’s disposable income, and residents in certain parts of the country fare better than others. To identify the U.S. states where residents have the most and least disposable income, researchers calculated the average after-tax income in each state, adjusted it for the cost of living, and then ranked states accordingly….

In the U.S., disposable income varies geographically. Since many factors like the local cost of living and interest rates can affect an individual’s disposable income, residents in certain parts of the country fare better than others. Many states in the Great Plains region—known for a lower cost of living than average—have high levels of disposable income. Five out of the top six states are located in this region, led by North Dakota with a cost-of-living adjusted, after-tax income of $71,444 per capita. On the other hand, Hawaii ranks last with an adjusted after-tax income per capita of only $47,894. Select areas of the Deep South, like Mississippi and Georgia, also have some of the lowest levels of disposable income in the country….

1. Hawaii

After-tax income per capita (adjusted): $47,894
After-tax income per capita: $53,085
Before-tax income per capita: $61,779
Personal taxes paid per capita: $8,694
Cost of living (compared to average): +10.8%

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