Ever wonder which parts of the country are seeing the biggest pay raises? While some areas are struggling to keep up with rising costs , a few states are actually seeing a boost in household incomes. In 2023, Americans experienced the first significant rise in median household incomes since 2019, with national growth around 4%, according to the U.S. Census Bureau.
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However, the real story of income growth is playing out on the state level, where some states saw double-digit increases. Here are the states where median household incomes spiked the most from 2022 to 2023 .
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1. South Dakota
South Dakota saw the biggest jump in median household income, rising 17% from $69,850 in 2022 to $81,740 in 2023 — a solid $11,890 increase. This growth comes as more high-income earners move to the state, drawn by no state income tax, affordable living and expanding job opportunities in fields like healthcare, finance and tech. South Dakota has also become a hotspot for remote workers seeking more space and a lower cost of living. With a steady influx of wealthy households, South Dakota’s economy is booming, and incomes are following suit.