Salary Data10 min read

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.

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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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