10 Poorest States in the U.S. by Median Household Income

Many West Virginians live in rural areas with limited access to high-paying jobs and quality education. John Elk III / Getty Images

The poorest states in the U.S. often face a multitude of economic and social challenges that contribute to and perpetuate their low median household incomes.

These states typically have higher poverty rates, with significant portions of their populations living below the poverty line. Factors such as limited access to quality education, fewer high-paying job opportunities and higher rates of unemployment contribute to the economic struggles of these regions.

In the rural areas, these states often lack the infrastructure and capital to attract major industries, which leads to people's reliance on low-wage jobs that don't offer them pathways to economic mobility. Higher rates of income inequality and child poverty further exacerbate the challenges many families face when they're trying to work toward financial stability.

To familiarize yourself with the poorest states in the U.S., let's look at the 10 states struggling the most, using 2022 data from the United States Census Bureau (the most recent data available). And to better understand each state's economic situation, we'll also look back at 2012 data and note any changes — good or bad.

For each state, we'll be looking at the median household income versus for the mean, or average. Wildly high or low incomes can skew a mean significantly, leaving us with a potentially inaccurate idea of the people's general economic health. But since the median is the middle value in a list of numbers, it can't be thrown off in this same way.

So, here are the 10 poorest states, with all figures adjusted for inflation.

1. Mississippi: $52,719

Mississippi has the lowest median household income in the nation, at $52,719 in 2022, up from $37,095 in 2012. In that amount of time, its position on the list of top 10 poorest states unfortunately did not improve.

Mississippi struggles with high rates of child poverty and income inequality, making it one of the states with the highest poverty rates.

Although the state's poverty rate (17.8 percent) has improved over the past decade, it remains significantly higher than the national average (11.5 percent as of 2022), with many residents working in low-wage jobs. Over 19 percent of the state's population lives at or below the poverty line.

Efforts to alleviate poverty focus on improving education and job creation, but the state still faces considerable challenges in reducing its poverty levels.

2. West Virginia: $54,329

West Virginia had a median household income of $54,329 in 2022, an increase from $40,196 in 2012. Although its median income rose in that 10-year period, it wasn't by enough to maintain or improve its ranking, and West Virginia climbed (in the wrong direction) from No. 3 to No. 2 among the country's poorest states.

West Virginia has one of the highest poverty rates in the country (15.6 percent), with many West Virginians living in rural areas with limited access to high-paying jobs and quality education.

High unemployment rates and poor health outcomes have further compounded the state's economic struggles. Initiatives aimed at job growth and improving people's ability to receive an education are essential for fostering economic prosperity in West Virginia.

3. Louisiana: $55,416

Between 2012 and 2022, Louisiana saw a dramatic change in its position on the list of poorest states, moving from No. 8 to No. 3. Its median household income in 2022 was $55,416, up from $42,944 in 2012.

Despite the increase in median income, the state remains among the poorest due to its high poverty rate (16.9 percent) and significant income inequality.

Many residents face challenges related to low-wage jobs and inadequate access to affordable housing. The state faces a severe shortage of rental homes that are both affordable and available for extremely low-income individuals.

Regional differences and economic disparities also influence Louisiana's poverty levels. Addressing these issues through targeted policies and economic development programs will be crucial if lawmakers and other change-makers are to reduce poverty in Louisiana.

4. Arkansas: $55,432

Arkansas ranks as the fourth-poorest state, with a median household income of $55,432 in 2022, up from $40,112 in 2012 according to the Bureau. It has improved its position slightly among the other states, having been the second-poorest state in 2012.

Despite this economic growth over the past decade, the Arkansas poverty rate (15.9 percent) remains a significant concern. Many families live near the poverty line, struggling to meet their basic needs.

Enhancing access to quality education and affordable housing will be critical in Arkansas in the coming years. Until the state successfully addresses these issues, it will likely continue to face high levels of childhood poverty and income inequality.

5. Kentucky: $59,341

Kentucky's median household income is $59,341 in 2022, up from $41,724 in 2012, and its position among the poorest states ultimately went unchanged between those years.

The state faces ongoing economic challenges, with many families living below the poverty threshold. Kentucky's poverty rate remains high, at 15.8 percent, with substantial disparities in income levels across different regions.

Efforts to alleviate the poverty in Kentucky focus on increasing access to quality education and promoting economic development in the most rural areas.

The state also aims to improve health outcomes and reduce childhood poverty through various social programs, such as the Kentucky Transitional Assistance Program, or KTAP, which helps parents find jobs in addition to providing children with financial and medical assistance.

6. Oklahoma: $59,673

In 2012, Oklahoma's median income was ranked ninth in the nation, but by 2022, the state had climbed to sixth, indicating its own situation worsened or other states outpaced it in terms of improving their own median household incomes, or a combination of both.

Oklahoma had a median household income of $59,673 in 2022, up from $44,312 in 2012. Despite this increase, many families struggle to make ends meet.

The state's poverty rate (15.8 percent) remains above the national average, and Oklahoma faces many challenges related to income inequality and high housing costs.

According to an Oklahoma report by the Center on Budget and Policy Priorities in conjunction with the Economic Policy Institute, "The richest 5 percent of households have average incomes 13.8 times as large as the bottom 20 percent of households and 5.0 times as large as the middle 20 percent of households."

Initiatives to improve economic conditions in the state include promoting job growth, investing in renewable energy sectors and providing citizens with entrepreneurship resources.

7. Alabama: $59,674

Alabama has seen its median household income rise to $59,674 in 2022 from $41,574 in 2012. Between those two years, the state dropped three places on the list of poorest states, climbing its way out of the top three.

However, Alabama's population continues to face high poverty rates (14.8 percent) and low income levels. Many residents rely on public sector jobs and face difficulties accessing quality healthcare and education. The state struggles with a high child poverty rate (22.2 percent) and significant wage gaps.

Efforts to reduce poverty in Alabama include improving job creation and enhancing educational opportunities for its residents. For example, the Alabama Commission on Higher Education administers a half dozen state-sponsored programs geared toward student financial aid.

8. New Mexico: $59,726

New Mexico's median household income in 2022 was $59,726, up from $42,558 in 2012. It improved its situation by two places in that time, moving from the No. 6 to the No. 8 spot.

The state has the highest poverty rate in the country (18.2 percent), with many residents living in extreme poverty. New Mexico struggles with low wage jobs, high child poverty rates and significant wealth inequality. Across all states, New Mexico has the largest gap between its high-income and middle-income households, at 3.2 times.

Efforts to reduce poverty in New Mexico include improving educational outcomes and creating more job opportunities. The state also works to address health disparities and improve living conditions for its residents.

9. Missouri: $64,811

Between 2012 and 2022, Missouri went from No. 10 to No. 9 among the country's poorest states. Its 2022 median household income was $64,811, up from $45,321 in 2012.

The state faces challenges related to income inequality and high poverty rates (11.5 percent), and many residents live in remote areas with limited access to quality education and healthcare. Of Missouri's more than 6 million residents, about one-third of the population lives in rural areas.

Efforts to reduce poverty in Missouri include promoting economic development and providing better access to social services. The state is also focused on improving housing affordability and reducing the wage gap.

10. Tennessee: $65,254

Tennessee's median household income increased to $65,254 in 2022 from $42,764 in 2012, and the state improved its ranking from seventh to 10th.

Despite this growth, many families in Tennessee continue to live near the federal poverty line. Factors such as low income levels, limited access to affordable housing and high healthcare costs influence the state's poverty rate (11.4 percent).

Initiatives to alleviate poverty in Tennessee must focus further on job creation, improving educational opportunities and providing better support for low-income families. The state aims to reduce child poverty through targeted social programs, such as the Temporary Assistance for Needy Families (TANF) program; the Women, Infants and Children (WIC) program; and others.

We created this article in conjunction with AI technology, then made sure it was fact-checked and edited by a HowStuffWorks editor.