Real Per Capita Personal Income by State: 2024 Rankings Adjusted for Cost of Living

The U.S. Bureau of Economic Analysis (BEA) released its 2024 state-level real personal income and real per capita personal income estimates on February 19, 2026, providing the most recent official look at how incomes compare across states after adjusting for differences in the cost of living. The data show wide variation: the District of Columbia led with real per capita personal income of $81,872, while several states clustered near $52,000. Nationally, real personal income rose 2.9 percent in 2024, but state growth ranged from a 5.5 percent gain in California to a 2.2 percent decline in North Dakota.

Key Numbers

• National real personal income growth: 2.9% in 2024
• Highest real per capita personal income: District of Columbia, $81,872
• Second highest: Connecticut, $74,254
• Largest state increase in real personal income: California, 5.5%
• Largest state decline: North Dakota, -2.2%
• Lowest among states with available data: Alabama, $52,216
• Colorado per capita income: $65,223, slightly below its 2023 level
• Hawaii per capita income: $52,272, despite high nominal costs

Explanation

Real per capita personal income is a measure of the average income available to each resident of a state, adjusted for inflation and for regional differences in the prices of goods and services. Unlike nominal personal income, which simply divides total income by population, the real measure uses regional price parities (RPPs) and the national personal consumption expenditures (PCE) price index to express incomes in constant, nationally comparable dollars. This adjustment is essential because a dollar goes further in some states than in others; a state with high nominal incomes may not actually offer higher purchasing power if its cost of living is also high.

The BEA calculates real per capita personal income by taking current-dollar personal income, adjusting it by the state’s RPP and the national PCE price index, and then dividing by the state’s population. The result is expressed in chained 2017 dollars, allowing meaningful comparisons across states and over time.

In 2024, the national increase in real personal income was 2.9 percent, but the state-level picture was uneven. Some states with strong technology, energy, or professional services sectors saw robust gains, while others, particularly those dependent on agriculture or energy extraction, experienced declines. The per capita figures highlight that even states with similar nominal incomes can have very different real purchasing power once local prices are considered.

Definition

Real per capita personal income is the total personal income of a state’s residents divided by the state’s population, adjusted for inflation and regional price differences. Personal income includes wages and salaries, proprietors’ income, rental income, dividends, interest, and transfer receipts such as Social Security and Medicare, less contributions for government social insurance. The real adjustment removes the effect of price changes over time, while the regional price parity adjustment removes the effect of price differences across states. The result is a measure of the average purchasing power of residents in each state, expressed in chained 2017 dollars.

State Comparison

States and the District of Columbia show a wide spread in real per capita personal income. The District of Columbia, with its concentration of high-paying federal and professional jobs, topped the list at $81,872. Connecticut followed at $74,254, reflecting its finance and insurance industries and proximity to New York. Colorado ($65,223) and California ($63,028) also ranked high, though California’s figure is notable because its high nominal incomes are partly offset by high housing costs. At the lower end, Alabama ($52,216), Hawaii ($52,272), and Idaho ($52,816) had some of the lowest real per capita incomes among the states shown in the BEA table. Hawaii’s low real per capita income is striking because its nominal incomes are relatively high, but its cost of living—especially housing—is among the highest in the nation, eroding purchasing power.

The gap between the highest and lowest areas is substantial. The District of Columbia’s real per capita income was about 57 percent higher than Alabama’s, underscoring how geography, industry mix, and cost of living interact to shape economic well-being.

Ranking Table

The table below shows 2024 real per capita personal income for selected states and the District of Columbia, based on BEA data released in February 2026. Values are in chained 2017 dollars.

Note: The table includes states for which 2024 and 2023 values were available in the BEA/FRED release. A full ranking of all 50 states and the District of Columbia is available from the BEA interactive tables.

Year-over-Year Change

Real per capita personal income changed unevenly across states in 2024. Using the preceding period values from the BEA table, California saw one of the largest per capita increases at about 4.9 percent, while Colorado and Idaho saw small declines. The BEA’s state-level real personal income release reported that total real personal income increased in 46 states and the District of Columbia, with percent changes ranging from 5.5 percent in California to -2.2 percent in North Dakota. Per capita changes can differ from total income changes because population growth also affects the per capita figure.

Selected year-over-year changes in real per capita personal income include:

• California: +4.9% (from $60,100 to $63,028)
• Alaska: +3.6% (from $58,204 to $60,272)
• Connecticut: +3.3% (from $71,915 to $74,254)
• Hawaii: +2.7% (from $50,923 to $52,272)
• Alabama: +2.6% (from $50,902 to $52,216)
• District of Columbia: +2.4% (from $79,990 to $81,872)
• Colorado: -0.2% (from $65,363 to $65,223)
• Idaho: -0.9% (from $53,302 to $52,816)

National Comparison

Nationally, real personal income increased 2.9 percent in 2024, according to the BEA. The state-level data show that many states grew faster than the national average, while others lagged or declined. The District of Columbia’s real per capita personal income of $81,872 was far above the figures for most states, reflecting its unique role as the seat of the federal government and a hub for professional services. Connecticut’s $74,254 also stood out, while a cluster of states in the South and West had per capita incomes in the low-to-mid $50,000s. The comparison highlights that national averages can mask significant regional differences in both income levels and purchasing power.

Methodology

The BEA produces real per capita personal income by state as part of its regional economic accounts. The process begins with current-dollar personal income, which is the sum of net earnings, property income, and personal current transfer receipts. To convert this to real terms, the BEA divides current-dollar personal income by a regional price parity (RPP) index for the state and by the national PCE price index. The RPP measures the cost of goods and services in a state relative to the national average, with the national level set at 100. A state with an RPP above 100 has higher-than-average prices, so its nominal income is adjusted downward to reflect lower purchasing power. The resulting real personal income is then divided by the state’s population to produce real per capita personal income, expressed in chained 2017 dollars.

The use of regional price parities is what makes this measure adjusted for cost of living. Without this adjustment, high-cost states like California and Hawaii would appear to have much higher real incomes than they actually do in terms of purchasing power.

Why It Matters

Real per capita personal income is a more meaningful indicator of economic well-being than nominal income because it accounts for the fact that the cost of living varies widely across the United States. A family earning $70,000 in Mississippi may have a higher standard of living than a family earning $90,000 in California if housing, taxes, and other expenses are much lower in Mississippi. Policymakers, businesses, and individuals use these figures to compare economic conditions, make relocation decisions, and allocate resources. The data also help identify states where high nominal incomes are offset by high costs, such as Hawaii, and states where moderate incomes go further because of lower prices.

Limitations of the Data

While real per capita personal income is a valuable measure, it has limitations. It is an average and does not show how income is distributed within a state; a state with a high average may still have significant poverty. The regional price parities are estimates and may not capture all local price differences, particularly for housing quality and non-market goods. The data are subject to revision as more complete source data become available. Additionally, per capita figures can be influenced by population changes, such as migration, which may not reflect changes in the economic well-being of existing residents. Users should interpret year-to-year changes with caution, especially for small states where estimates can be volatile.

Source & Data Date

Primary source: U.S. Bureau of Economic Analysis (BEA), Real Personal Consumption Expenditures by State and Real Personal Income by State, 2024, released February 19, 2026. Data are for calendar year 2024 and are expressed in chained 2017 dollars. Additional data were accessed via the Federal Reserve Bank of St. Louis (FRED) release tables for real per capita personal income by state, 2024 annual values. URLs: https://www.bea.gov/data/income-saving/real-personal-income-states and https://fred.stlouisfed.org/release/tables?eid=233586&rid=403.