USA States Ranking

The economic landscape of the United States is a diverse mosaic shaped by varying policies, industries, and demographics across its 50 states. Key economic indicators such as sales tax rates, income tax rates, Gross Domestic Product (GDP), GDP per capita, average salary, and median home prices provide valuable insights into the economic health and living standards of each state. The table below summarizes a comprehensive overview of the economic conditions across U.S. states. The data changes by year-to-year, and the depicted data below are from 2023.

Sales tax is a critical source of revenue for state governments. The rates can vary significantly from state to state, influencing the overall cost of living and business operations. As of 2024, the states with the highest sales tax rates include:

• California: 7.25%
• Rhode Island: 7%
• Mississippi: 7%
• Tennessee: 7%
• Indiana: 7%

On the other end of the spectrum, some states like Delaware, Montana, New Hampshire, and Oregon do not impose a state-level sales tax.

Income tax policies vary widely, reflecting the diverse economic philosophies and needs of each state. Some states have a progressive tax system with higher rates for higher income brackets, while others have a flat rate. Notably, there are states with no state income tax at all, including:

• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming

Among the states with income taxes, California and New York have some of the highest rates, with California's top marginal rate reaching 13.3%.

GDP is a primary indicator of economic performance. The states with the largest GDPs reflect their substantial economic output, often driven by diverse and robust industries. As of the latest data:

• California: $3.4 trillion. Comparing with national GDP, California alone accounts 5th largest GDP worldwide after USA, China, Japan and Germany.
• Texas: $2.0 trillion
• New York: $1.8 trillion

These states have economies larger than many countries, driven by sectors like technology, energy, finance, and entertainment.

GDP per capita provides a measure of the average economic output per person, offering insights into the standard of living and economic productivity. Leading states in GDP per capita include:

• Massachusetts: $76,000
• New York: $75,000
• Connecticut: $74,000

These states benefit from high-value industries such as finance, technology, and education.

Average salaries vary widely based on the dominant industries and cost of living in each state. States with high average salaries typically have a strong presence in high-paying sectors like technology, finance, and healthcare. Notable states include:

• Massachusetts: $76,600
• New York: $74,879
• California: $73,220

Housing costs are a significant component of the cost of living, and median home prices vary dramatically across states. States with high median home prices are often those with limited land supply and high demand, such as:

• California: $787,000
• Hawaii: $750,000
• Washington: $602,000

Conversely, states like West Virginia and Ohio have some of the lowest median home prices, often below $200,000.