The U.S. is an immensely rich country. In addition to having the world’s largest economy, it tops the list in both the number of high-net-worth individuals, generally defined as those whose financial assets exceed $1 million in value (5.9 million of them, according to global consultant Capgemini) and billionaires (724).
At the same time, the U.S. continues to have the worst income inequality of any G7 nation, according to the Organization for Economic Cooperation and Development. A 2017 analysis by the Federal Reserve Bank of St. Louis shows income inequality in America to be “very close to the average” of that in the African countries that were included in the study, and far below its peers with similar per-capita incomes, like Sweden.
Within the U.S., income inequality also varies from state to state. One measure that can reveal income inequality is the concentration of income among the top 5% of earners.
In Iowa, the top 5% of earners took in 21.1% of the total income in the state in 2019, the 16th lowest percentage among states. Nationwide, the top 5% of earners took in 23.3% of income that year. Conversely, the lowest 20% of earners in Iowa accounted for just 3.8% of all income in the state. Nationwide, the bottom 20% had an aggregate share of 3.2% of all earnings.
Earnings in Iowa tend to be relatively low. The state has the 21st lowest median annual household income in the country, at $61,691, compared to the U.S. median of $65,712. The state’s poverty rate is the 20th lowest, at 11.2%. The U.S. poverty rate is 12.3%
To identify the states where the richest 5% earn half the income, 24/7 Wall St reviewed the aggregate share of income by quintile from the U.S. Census Bureau’s American Community Survey for 2019.
State | Pct. of income earned by the top 5%(%) | Rank | Poverty rate (%) | Rank |
---|---|---|---|---|
Alabama | 21.8 | 23rd lowest | 15.5 | 7th highest |
Alaska | 19.7 | the lowest | 10.1 | 13th lowest |
Arizona | 21.8 | 23rd lowest | 13.5 | 13th highest |
Arkansas | 23.1 | 13th highest | 16.2 | 5th highest |
California | 23.4 | 7th highest | 11.8 | 25th highest |
Colorado | 21.8 | 21st lowest | 9.3 | 7th lowest |
Connecticut | 25.3 | 2nd highest | 10.0 | 12th lowest |
Delaware | 21.0 | 14th lowest | 11.3 | 22nd lowest |
Florida | 24.1 | 3rd highest | 12.7 | 19th highest |
Georgia | 23.3 | 9th highest | 13.3 | 14th highest |
Hawaii | 19.9 | 2nd lowest | 9.3 | 6th lowest |
Idaho | 20.6 | 6th lowest | 11.2 | 21st lowest |
Illinois | 23.1 | 11th highest | 11.5 | 25th lowest |
Indiana | 22.3 | 21st highest | 11.9 | 24th highest |
Iowa | 21.1 | 16th lowest | 11.2 | 20th lowest |
Kansas | 21.3 | 18th lowest | 11.4 | 24th lowest |
Kentucky | 23.1 | 11th highest | 16.3 | 4th highest |
Louisiana | 23.2 | 10th highest | 19.0 | 2nd highest |
Maine | 20.9 | 11th lowest | 10.9 | 19th lowest |
Maryland | 21.0 | 15th lowest | 9.0 | 4th lowest |
Massachusetts | 22.4 | 20th highest | 9.4 | 8th lowest |
Michigan | 22.1 | 24th highest | 13.0 | 17th highest |
Minnesota | 21.0 | 13th lowest | 9.0 | 3rd lowest |
Mississippi | 23.4 | 6th highest | 19.6 | the highest |
Missouri | 22.2 | 23rd highest | 12.9 | 18th highest |
Montana | 22.7 | 18th highest | 12.6 | 20th highest |
Nebraska | 20.8 | 9th lowest | 9.9 | 10th lowest |
Nevada | 23.9 | 4th highest | 12.5 | 21st highest |
New Hampshire | 20.4 | 4th lowest | 7.3 | the lowest |
New Jersey | 22.7 | 19th highest | 9.2 | 5th lowest |
New Mexico | 22.0 | 25th highest | 18.2 | 3rd highest |
New York | 25.8 | the highest | 13.0 | 16th highest |
North Carolina | 23.0 | 15th highest | 13.6 | 12th highest |
North Dakota | 21.8 | 24th lowest | 10.6 | 17th lowest |
Ohio | 22.3 | 22nd highest | 13.1 | 15th highest |
Oklahoma | 23.3 | 8th highest | 15.2 | 8th highest |
Oregon | 20.7 | 7th lowest | 11.4 | 23rd lowest |
Pennsylvania | 23.0 | 14th highest | 12.0 | 22nd highest |
Rhode Island | 22.0 | 25th lowest | 10.8 | 18th lowest |
South Carolina | 22.7 | 17th highest | 13.8 | 10th highest |
South Dakota | 20.5 | 5th lowest | 11.9 | 23rd highest |
Tennessee | 23.5 | 5th highest | 13.9 | 9th highest |
Texas | 22.8 | 16th highest | 13.6 | 11th highest |
Utah | 20.9 | 12th lowest | 8.9 | 2nd lowest |
Vermont | 20.7 | 8th lowest | 10.2 | 15th lowest |
Virginia | 21.7 | 20th lowest | 9.9 | 11th lowest |
Washington | 21.6 | 19th lowest | 9.8 | 9th lowest |
West Virginia | 21.3 | 17th lowest | 16.0 | 6th highest |
Wisconsin | 20.8 | 10th lowest | 10.4 | 16th lowest |
Wyoming | 20.4 | 4th lowest | 10.1 | 14th lowest |
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