Utah Leads Nation with $98,336 Adjusted Median Household Income

Salt Lake City, UT – Utah has emerged as the state with the highest median household income when adjusted for the cost of living, according to recent analyses. This finding, highlighted by social media commentator Hunter📈🌈📊, positions Utah significantly ahead of other states in terms of residents' purchasing power.

"What state has the highest median household income adjusted for cost of living? Utah," stated Hunter📈🌈📊 in a recent tweet. "The midwest, mountain west, and New England generally do well here. South and expensive coastal states lagging a bit." This assessment is supported by a new report from the University of Utah’s Kem C. Gardner Policy Institute, which found Utah's adjusted median household income to be $98,336, a figure 27% higher than the national average.

The state's strong performance is attributed to a unique combination of demographic and economic factors. Utah boasts the nation's largest average household size, at 2.99 persons, and a high labor force participation rate, with 1.59 income earners per household. This larger household structure contributes significantly to overall household income. Furthermore, while housing costs have risen, a high rate of homeownership helps mitigate the impact of these expenses on typical household budgets, maintaining overall affordability compared to other high-income states.

Beyond household dynamics, Utah's robust economic growth underpins its income standing. The state's Gross Domestic Product (GDP) surpassed $300 billion for the first time in 2024, achieving a 4.5% year-over-year growth rate, the highest in the U.S. This sustained economic vitality, described by Gardner Policy Institute chief economist Phil Dean as stemming from "very strong fundamentals" including a young, educated population and competitive fiscal policies, creates a favorable environment for residents.

In contrast to Utah's cost-of-living adjusted leadership, states like Massachusetts ($99,858), New Jersey ($99,781), and Maryland ($98,678) recorded the highest nominal median household incomes in 2023, according to the U.S. Census Bureau. However, these states typically face significantly higher costs of living, which can diminish the real value of their higher incomes. Meanwhile, states in the South, such as Mississippi ($54,203) and West Virginia, continue to report some of the nation's lowest median household incomes, both nominally and effectively.