Not Texas, Not New York: This State Has The Highest Income In 2026

New York and Texas are among America's biggest economic powerhouses, but neither claimed the top spot in WalletHub's 2026 ranking of states with the highest incomes. Instead, Virginia took first place, with New York and New Jersey trailing in second and third, respectively. Texas, meanwhile, didn't even make the top 10, finishing at No. 11 overall. However, Virginia placing first doesn't necessarily mean its residents have the highest median household income in the country. 

The differences in the overall ranking ultimately came down to how income was measured. Using May 2026 data from the U.S. Census Bureau and the Council for Community and Economic Research, WalletHub calculated cost-of-living-adjusted figures for each state. This meant Virginia's median annual household income was calculated at $95,339 compared with $96,746 for New York. 

Plus, rather than simply ranking states by highest median income, the study also factored in earnings among both the highest- and lowest-income residents. The study gave the greatest weight (50%) to the average annual income of the top 5% of earners, while median annual household income and the average annual income of the bottom 20% of earners accounted for another 25%, each, in the final score. Virginia outperformed New York on that final metric, with its bottom 20% earning an average of $19,671 annually, compared with $13,633 in New York. On the other hand, Texas lagged behind Virginia across all three metrics, including average top-5% income — $520,378 compared to Virginia's $545,097.

Virginia boasts a high concentration of wealthy households, and high-paying jobs, in Northern Virginia — particularly around Washington, D.C. That region alone had an estimated median household income of $149,502 in 2024, per the Northern Virginia Regional Commission. For example, Loudoun County, a wealthy suburb in the area, had a median income of $181,765, according to U.S. Census Bureau estimates for 2020 to 2024, while more than half of the residents of nearby Arlington earn over $100,000. Much of this high income is due to jobs in government, technology, management, and professional services.

Virginia's relatively strong income figures also aren't limited to just its wealthiest residents either. WalletHub found that the income of the state's bottom 20% of earners was the fourth highest nationally, compared with No. 27 for Texas and No. 45 for New York. Virginia also boasts a low U.S. Census Bureau poverty rate of only 9.4% living below the poverty line in 2025, compared with 12.7% in Texas and 13.8% in New York. Even the average household appears to be doing relatively well, with Virginia's median household income reaching $100,000 in 2025, compared with $87,460 nationally, per Census data via the Federal Reserve.