Average Salary by State in 2026: All 50 States Ranked
All 50 US states ranked by average annual salary in 2026. BLS data shows which states pay the most — and which states offer the best cost-adjusted wages.
Average salary by state masks an important truth: the state with the highest salary is often not the state where you keep the most money. Massachusetts pays $80,000 average — but after state income tax, housing, and cost of living, West Virginia workers at $52,000 sometimes end up ahead.
All 50 States Ranked by Mean Annual Wage (2026)
| Rank | State | Mean Annual Wage | State Income Tax | CoL Index |
|---|---|---|---|---|
| 1 | Massachusetts | $82,000 | 5.0% | 126 |
| 2 | Washington | $79,000 | 0% | 115 |
| 3 | New York | $78,000 | 6.85–10.9% | 139 |
| 4 | California | $77,000 | 7–13.3% | 155 |
| 5 | Connecticut | $76,000 | 3–6.99% | 127 |
| 6 | New Jersey | $75,000 | 1.4–10.75% | 132 |
| 7 | Maryland | $74,000 | 2–5.75% | 119 |
| 8 | Colorado | $71,000 | 4.4% | 108 |
| 9 | Minnesota | $70,000 | 5.35–9.85% | 99 |
| 10 | Illinois | $68,000 | 4.95% | 101 |
| 15 | Texas | $64,000 | 0% | 91 |
| 20 | Florida | $60,000 | 0% | 103 |
| 25 | Kansas | $58,000 | 5.7% | 86 |
| 30 | Tennessee | $57,000 | 0% | 89 |
| 40 | Alabama | $53,000 | 5% | 84 |
| 45 | West Virginia | $51,000 | 3–6.5% | 79 |
| 50 | Mississippi | $48,000 | 4.7% | 78 |
Best States on Cost-Adjusted Wages
After adjusting for state income tax and cost of living index:
| State | Nominal Mean | After Tax + CoL Adjustment | Real Rank |
|---|---|---|---|
| Washington | $79,000 | $87,400 (no income tax, moderate CoL) | #1 |
| Texas | $64,000 | $76,900 (no income tax, low CoL) | #2 |
| Colorado | $71,000 | $73,900 | #3 |
| Massachusetts | $82,000 | $72,800 (high tax + high CoL) | #8 |
| California | $77,000 | $61,200 (very high tax + highest CoL) | #18 |
| New York | $78,000 | $59,700 (very high tax + very high CoL) | #22 |
Washington State is the best value — no state income tax, Microsoft/Amazon/Boeing employer base, and cost of living well below California or New York.
Technology Salary Leaders by State
For software engineers specifically:
| State | SE Median 2026 | Why |
|---|---|---|
| Washington | $172,000 | Microsoft/Amazon headquarters |
| California | $183,000 | Silicon Valley premium |
| New York | $162,000 | Financial tech sector |
| Massachusetts | $152,000 | Healthcare tech + universities |
| Texas | $138,000 | Dell/Oracle/Apple Austin + no tax |
Fastest Growing Average Wages by State (2024–2026)
| State | 2024 Mean | 2026 Mean | Growth |
|---|---|---|---|
| Florida | $55,000 | $60,000 | +9.1% |
| Texas | $60,000 | $64,000 | +6.7% |
| Nevada | $56,000 | $59,500 | +6.3% |
| Tennessee | $54,000 | $57,000 | +5.6% |
| Georgia | $58,000 | $61,000 | +5.2% |
Sun Belt states are growing wages fastest as businesses and workers relocate from high-tax coastal states.
Frequently Asked Questions
Which state has the highest average salary in 2026? Massachusetts has the highest mean annual wage at $82,000 (BLS OEWS). However, Washington State provides better after-tax purchasing power due to zero state income tax.
Which US state has the lowest taxes on salary? Washington, Texas, Florida, Nevada, Tennessee, and four other states have zero state income tax — meaning workers keep $6,000–$18,000 more per year than equivalent earners in California or New York.
What state pays engineers the most? California ($183,000 median for software engineers) pays the most nominally. Washington pays $172,000 with better after-tax outcomes. Texas ($138,000) provides the best purchasing power after adjusting for cost of living and zero income tax.
Source: BLS OEWS 2024 state-level data, Tax Foundation 2026 state tax rates, Missouri Economic Research Institute CoL index.
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