Income Distribution by State Calculator
Analyze how your annual income ranks within your specific state and nationally.
Select your primary state of residence for local comparison.
Include all gross income before taxes for your entire household.
Income Distribution Visualizer
Visual representation of where your income falls relative to the state's density curve.
What is an Income Distribution by State Calculator?
An income distribution by state calculator is a sophisticated financial tool designed to provide context to your earnings. While gross income is a simple number, its relative value changes drastically depending on where you live. For instance, a $100,000 household income in Mississippi represents a much higher standard of living and percentile rank than the same amount in San Francisco or New York City.
This calculator utilizes state-specific median income data and statistical distribution models (typically log-normal distributions) to estimate your percentile rank. It helps individuals, researchers, and policymakers understand the socio-economic standing of a household within their local jurisdiction compared to the national average.
Common misconceptions include the idea that "middle class" is a single universal number. In reality, the middle class is a broad spectrum that varies by over 40% in dollar terms between the most and least expensive states.
Income Distribution Formula and Mathematical Explanation
Income distribution is rarely a "normal" bell curve; it is typically "right-skewed," meaning most people earn near the median, while a small number of people earn significantly more. We use a Log-Normal Distribution model to approximate this reality.
The core calculation involves finding the Cumulative Distribution Function (CDF) for a log-normal variable:
Percentile = Φ((ln(x) - μ) / σ)
- x: Your annual household income.
- μ (Mu): The natural log of the median income for the state.
- σ (Sigma): The standard deviation of the log-income (spread/inequality factor).
- Φ: The standard normal cumulative distribution function.
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| Household Income | Total gross annual earnings | USD ($) | $15,000 – $1,000,000+ |
| State Median | The 50th percentile income for that state | USD ($) | $55,000 – $110,000 |
| Gini Coefficient | Measure of state income inequality | Index (0-1) | 0.43 – 0.52 |
| Percentile | Percentage of households you earn more than | % | 0% – 99.9% |
Practical Examples (Real-World Use Cases)
Example 1: The Tech Professional in California
A household in California earns $160,000. Using the income distribution by state calculator, they might find they are in the 78th percentile for California. However, compared to the national average, they might be in the 88th percentile. This highlights how high costs in California "soak up" what would be an elite income elsewhere.
Example 2: The Teacher in West Virginia
A household in West Virginia earns $85,000. While this is lower than the California example in absolute dollars, this income ranks in the 82nd percentile for West Virginia. This person has a higher relative standing in their local economy than the tech professional in the previous example, despite earning nearly half as much.
Related Financial Tools
- household income percentile – Compare your earnings against the entire US population.
- median state income – Browse the full list of median household incomes by state.
- cost of living by state – Adjust your income for local purchasing power.
- income inequality metrics – Learn how the Gini coefficient affects local economies.
- wealth distribution – See how assets and debts are distributed across the country.
- tax burden by state – Calculate how much of your income goes to state and local taxes.
How to Use This Income Distribution by State Calculator
- Select Your State: Use the dropdown menu to choose your current state of residence. This loads the specific median income and inequality data for that region.
- Enter Annual Income: Input your total gross (pre-tax) household income. This should include salaries, bonuses, dividends, and business income.
- Review the Rank: The income distribution by state calculator will immediately show your percentile. If you are in the 90th percentile, you earn more than 90% of households in that state.
- Analyze the Chart: Look at the visual distribution to see how "steep" the curve is in your state. Flat curves mean most people earn similar amounts; steep curves indicate higher inequality.
Key Factors That Affect Income Distribution Results
- Regional Urbanization: States with major mega-cities (NY, CA, IL) tend to have highly skewed distributions with very high "tails" for top earners.
- Industry Concentration: States dominated by high-paying sectors like Finance or Tech (MA, WA) will have higher medians, pushing the requirements for high percentiles upward.
- Education Levels: States with higher percentages of post-graduate degrees usually show a shift in the distribution toward higher income brackets.
- Cost of Living: High-income states often correlate with high costs. An income distribution by state calculator shows nominal rank, but purchasing power may differ.
- Tax Policies: While this calculator uses gross income, state tax structures (income tax vs. sales tax) affect how that distribution translates to "take-home" lifestyle.
- Demographics: States with older populations may show higher median incomes due to peak-earning years, whereas states with younger populations or more students may show lower medians.
Frequently Asked Questions (FAQ)
What is a "good" percentile rank?
Generally, the 50th percentile is the median (middle). Being above the 80th percentile is often considered "upper-middle class," while the 95th percentile and above is considered "upper class."
Does this include capital gains?
Yes, for an accurate reflection of your standing in the income distribution by state calculator, you should include all taxable income sources.
How often is the state data updated?
The data is typically based on annual American Community Survey (ACS) releases from the Census Bureau, usually reflecting the previous 1-2 years of economic activity.
Why is my state's median so different from the national median?
The national median is an average of all regions. Low-cost rural states and high-cost coastal states pull the average in different directions.
Is this calculator anonymous?
Yes, all calculations are performed locally in your browser. No personal financial data is stored or transmitted.
Does household size matter?
This calculator uses "household income," which includes everyone living in the home. A single person earning $100k has a different "effective" distribution than a family of five earning $100k.
What is the Gini Coefficient?
It is a statistical measure of distribution. A Gini of 0 represents perfect equality, while 1 represents perfect inequality. Most US states fall between 0.4 and 0.5.
Can I use this for salary negotiations?
Absolutely. Knowing that a salary offer puts you in the 90th percentile of a state can be a powerful data point when discussing cost-of-living adjustments.