Not Louisiana, Not New Mexico: This Is The Poorest State In America

Across numerous metrics, Mississippi is largely considered the poorest state in America. Unlike states with the highest median incomes, Mississippi had the lowest median household income from 2020 to 2024, at just $56,447, according to the National Institute on Minority Health and Health Disparities. For comparison, Louisiana came in third, at $60,756, and New Mexico came in seventh, at $64,059, while the national median was $80,734.

Mississippi also has considerable rates of poverty. According to three year official poverty rates from the U.S. Census Bureau, from 2023 through 2025, Mississippi had the second highest poverty rate – with 17.6% of people in the state qualifying. For context, people at or below the poverty threshold are those who cannot meet basic financial requirements for food, housing, and healthcare. By this metric alone, Louisiana had the highest poverty rate at 19.6%. The Magnolia State has also gained a reputation as the country's hungriest state. As of September 2026, nonprofit agency Feeding America notes that one in every five people, and one in every four children, face hunger in Mississippi.

While it can be difficult to pinpoint any singular factor causing hardship in Mississippi — as multiple facets of the state's systems directly contribute to the state being poor — the job market is a significant place to start. For example, a 2023 Economic Policy Institute report listed low wages — Mississippi uses the federal rate of $7.25 – alongside minimal business regulations or worker protections as contributing factors to Mississippi's poverty rate. 

To add to this, per 2024 Peak Sales Recruiting research, Mississippi is the worst state to work. The state ranked second worst for job growth and had the least opportunity for remote work. Jobs in Mississippi are often in industries such as automotive or other manufacturing, farming, shipbuilding, fishing, and energy. However, according to the U.S. Bureau of Labor Statistics, as of August 2026, the state had an unemployment rate of 3.4% – the fifteenth highest in the country.

For those already financially struggling it's also worth noting that, according to the National Center for Children in Poverty, Mississippi provides the second lowest benefit amounts for those on Temporary Assistance for Needy Families (TANF), with the state's maximum monthly benefits capping at $260 for a family of three, compared to a national median of $583. This likely contributes to the fact that Mississippi, along with Louisiana, are the states with the highest rates of underwater mortgages.