In this article, we will be taking a look at the 20 wealthiest states in America.
United States is the biggest economy in the world by a significant margin and several of its states are among the largest economies in the world. However, simultaneously, the U.S. also sees great income and wealth inequality, higher than any other country in the entire world. Even during the pandemic, when tens of millions of Americans lost their jobs and their savings, the wealth of billionaires continued to skyrocket, increasing by $2 trillion in the U.S. alone between March 2020 and October 2021. In 2018, even before this inequality deepened further as a result of the pandemic, just the three richest men were wealthier than the poorest half of Americans.
So why does the U.S. have so many billionaires, more than any other country in the world even though China, the second biggest economy has a population almost four times greater? Well, most of the billionaires in the country obtained the title after creating their own companies which then achieved massive success, earning them fortunes. Being home to a successful economy and a burgeoning middle class provides the perfect ground for companies to grow, not to mention the strength of the U.S. stock market, easily the biggest in the world. All of this combined with tax cuts for corporations and loopholes that the wealthiest can take advantage of means that it is easier for them to increase their wealth which in turn leads to greater wealth disparity.
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The wealthiest states in America are also home to some of the most successful corporations in the world, which we’ll delve into when discussing the states in particular. The U.S. is a federal republic, which means that while there is a national government which imposes federal laws applicable to all states, most laws are left to each state to decide and agree on, which is why laws can vary significantly from one state to another. The wealthiest states in America have passed laws designed to encourage corporations to grow in a bit to contribute more to the state’s economy and create jobs as well.
Each state has a different economy based on its location, population and resources. For example, Texas has vast oil reserves which is why it is home to some of the biggest oil companies in the world and oil is a major contributor to its GDP. Since oil companies generally earn massive profits, it is no surprise that the state is home to several millionaires and billionaires. On the other hand, some states have a much smaller GDP because of their size and population, and the industries which make up a majority of their GDP. For example, states which have a large agricultural output aren’t as rich since, while absolutely integral to the economy, agriculture doesn’t lead to wealth creation in the same manner as our earlier example of the oil industry. Many states have diversified economies, with some focusing on the finance sectors, others on the tech sector, while states with major reserves of natural resources take advantage of this fact and use it to boost their GDP.
Everyone in the U.S. has been expecting a recession to hit the country in 2023, as economic growth has slowed down as has activity. Recently, at the start of 2023, there were hopes that a strong soft landing would ensure that the country would avoid a recession as economic indicators seemed to be improving. However, JPMorgan economists have signaled a warning that country’s stock market and economy could waver in the coming months even if a recession is ultimately avoided, and the wealthiest states in America will have an integral role in where the country’s economy is headed towards in 2023.
When putting together the list of wealthiest states in the US we noticed that several other websites used GDP or income per capita to determine the wealthiest states. It is true that income and wealth are correlated but they are different things.
To determine the wealthiest states in America, we first determined the number of millionaires in each state, which means having $1 million in net assets, based on the latest study by Phoenix International. We then ascertained the number of billionaires in each state, based on data from Forbes, and calculated the average of both rankings to finalize our list. We relied on absolute numbers rather than percentage of millionaires / billionaires as the former determines absolute wealth. So, let’s now look at the wealthiest states in the U.S., starting with:
20. North Carolina
Total number of millionaires in the state: 224,054
Total number of billionaires in the state: 3
The state’s strong economy has been boosted by its strong financials, while it was ranked number 1 in America’s top states for businesses.
19. Wisconsin
Total number of millionaires in the state: 138,283
Total number of billionaires in the state: 8
Manufacturing, healthcare and agriculture make up the biggest industries in the state of Wisconsin, with its richest person being John Menard Jr., who owns home improvements retail company Menards.
18. Tennessee
Total number of millionaires in the state: 139,335
Total number of billionaires in the state: 8
According to a study by SmartAsset, Tennessee is among the top 10 destinations for wealthy millennials.
17. Colorado
Total number of millionaires in the state: 170,223
Total number of billionaires in the state: 8
With an economy bigger than that of the UAE, Colorado’s growth rate is even outpacing the national average. You can take a look at some of the biggest Colorado companies and stocks here.
16. Michigan
Total number of millionaires in the state: 236,858
Total number of billionaires in the state: 7
While there are plenty of rich people in the state of Michigan, the wealth gap is continuing to increase despite diverse industries and a strong economy.
15. Connecticut
Total number of millionaires in the state: 130,291
Total number of billionaires in the state: 14
Connecticut has been a manufacturing powerhouse since colonial times, which has contributed to it becoming one of the wealthiest states in America. You can learn more about the companies behind such a strong economy by visiting the 25 biggest Connecticut companies and stocks.
14. Arizona
Total number of millionaires in the state: 161,014
Total number of billionaires in the state: 11
In 2022, a suburb in Arizona known as Paradise Valley started attracting the ultra-wealthy, resulting in the median house price jumping 41% to over $2 million.
13. Ohio
Total number of millionaires in the state: 261,157
Total number of billionaires in the state: 6
Ohio is home to over 12,000 manufacturers and is considered to be among the biggest manufacturers in the country.
12. Maryland
Total number of millionaires in the state: 221,189
Total number of billionaires in the state: 10
A major reason why Maryland is among the wealthiest states in America is because of its proximity to Washington D.C. where many residents of the state go for work. Also, the largest company in Maryland is Marriott International, Inc. (NASDAQ:MAR).
11. New Jersey
Total number of millionaires in the state: 323,443
Total number of billionaires in the state: 7
In terms of millionaires as a percentage of total population, New Jersey would easily top the list. It is also home to some of the highest median incomes in the country, even though income is not the most accurate indicator of wealth.
10. Washington
Total number of millionaires in the state: 233,155
Total number of billionaires in the state: 12
The state of Washington is home to a major port, Puget Sound, where a large amount of trade with Asia passes through. It is also one of the biggest exporters in the U.S. and among the wealthiest states in America.
9. Virginia
Total number of millionaires in the state: 272,103
Total number of billionaires in the state: 10
Virginia is home to one of the biggest defense and aerospace industries in the world, and is the largest defense spender in the country. Hence, it comes as no surprise that the largest listed company in Virginia is General Dynamics Corporation (NYSE:GD). In fact, defense companies dominate the list of the 25 biggest Virginia companies.
8. Georgia
Total number of millionaires in the state: 239,287
Total number of billionaires in the state: 12
Georgia is home to a successful economy and if it were a company, it would outrank some major European nations in terms of GDP. One of the biggest retailers in the world, The Home Depot, Inc. (NYSE:HD), is also the biggest company in Georgia. To learn more about the state’s economy and the largest companies in the state, head on over to the 25 biggest Georgia companies in the world.
7. Massachusetts
Total number of millionaires in the state: 254,201
Total number of billionaires in the state: 2o
A strong economy and a highly educated population has led to the wealth of people in Massachusetts increasing. Some of the biggest companies in Massachusetts Raytheon Technologies Corporation (NYSE:RTX) while you can learn more about such companies here.
6. Pennsylvania
Total number of millionaires in the state: 328,859
Total number of billionaires in the state: 12
Pennsylvania has registered a surge in the number of millionaires in recent years, which has helped boost its ranking among the wealthiest states in America.
5. Illinois
Total number of millionaires in the state: 346,873
Total number of billionaires in the state: 17
Illinois sees most of its wealth come from the Chicago metropolitan area, even though according to reports, it has lost out on around $107 billion in the past decade as a result of wealthy Illinoisans leaving the state.
4. Florida
Total number of millionaires in the state: 496,971
Total number of billionaires in the state: 60
A lack of state income tax attracts the wealthy to Texas like a moth to light. In addition, many wealthy retirees make Florida their retirement destination because of warm weather and access to the beach. According to SmartAsset, the wealthy flock to Florida at a rate four times higher than any other state in the country.
3. Texas
Total number of millionaires in the state: 650,216
Total number of billionaires in the state: 58
Texas being one of the wealthiest states in America should come as no surprise considering its vast oil reserves and the companies established to take advantage of this situation. However, the state has diversified its economy with the information technology sector, electric power, and aerospace and defense. It is also considered to be a manufacturing powerhouse.
2. New York
Total number of millionaires in the state: 570,456
Total number of billionaires in the state: 114
Most of New York’s wealth is through New York City, considered to be the financial center of the world. This is why banks dominate the biggest companies in New York, with JPMorgan Chase & Co. (NYSE:JPM) being the biggest company in the state. Apart from JPMorgan Chase & Co. (NYSE:JPM), the state is also home to one of the biggest pharmaceutical companies in the world in Pfizer Inc. (NYSE:PFE).
1. California
Total number of millionaires in the state: 1,147,251
Total number of billionaires in the state: 189
Easily topping the list of the 15 wealthiest states in America is California, the only state with over 1 million millionaires and the highest number of billionaires as well. The reason that California is so wealthy is largely due to being home to Silicon Valley, which itself is home to some of the biggest tech companies in the world including the most valuable company in the world and one of the most valuable in history in Apple Inc. (NASDAQ:AAPL). To learn more about the biggest companies in California, consider taking a look at the 25 biggest Californian companies.
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Disclosure: None. 20 wealthiest states in America is originally published at Insider Monkey.
