NEW JERSEY — New Jersey residents have the third-highest incomes in the nation, according to a new study released Tuesday by personal finance website WalletHub.
The report, States Where People Have the Highest Income, compared all 50 states and the District of Columbia using three income-related measures adjusted for cost of living: median annual income, average annual income for the top 5% of earners and average annual income for the bottom 20% of earners.
Overall, New Jersey ranked third in the nation.
According to the study, New Jersey ranked fifth for the average annual income of the top 5% of earners, who make an average of $527,376 per year when adjusted for cost of living.
The state ranked sixth for median annual income, with residents earning a median of $125,766 annually after accounting for cost-of-living differences.
New Jersey ranked 19th for the average annual income of the bottom 20% of earners, whose income averaged $17,418 per year on a cost-of-living-adjusted basis.
WalletHub said the rankings were designed to provide a more accurate comparison of income levels across states by factoring in local living costs rather than relying solely on raw earnings data.
The analysis comes as the median annual household income nationwide is approximately $83,700, according to WalletHub.
The study evaluated states based on the earning power of residents at different income levels to determine where Americans are financially best positioned after accounting for regional cost differences.
The full report is available at WalletHub.com.
