Best States to Make A Living 2011

Based on a number of factors related to making a living, MoneyRates.com ranks the best states for making a living; see where you might find the best prospects for your career.
mm
Financial Expert
mm
Managing Editor
Our methodology is designed to provide consumers with unbiased and comprehensive evaluations of various banking products. Visit our Editorial Policy page for more information.
elderly couple relaxing at nature

Also see the most recent Best States to Make a Living feature

Things are tough all over, right?

Well, not really. While the job market is still pretty weak overall, the truth is that conditions vary greatly from state to state. For example, in February 2011, the unemployment rate was 13.6 percent in Nevada but only 3.7 percent in North Dakota. On top of that, MoneyRates found significant differences in a number of other job-related factors as well, and an analysis of these factors culminated in a list of the best states for making a living.

This can be crucial information for Americans trying to improve their fortunes. With the economy growing in some areas while continuing to struggle in others, moving to a new state might be the best way to find work and a good income. The MoneyRates list of the best states for making a living can be a guide to making the right move for your career.

MoneyRates looked at four factors involved in making a living:

  • Average state wages
  • State unemployment rate
  • State tax rate
  • State cost of living

Based on all these factors, MoneyRates calculated an adjusted average income for each state – the average income adjusted for your chances of finding a job, how much you would lose to state taxes, and how much purchasing power that income would have based on the cost of living in that state. A ranking of these adjusted-average incomes is the basis for the following list of the top 10 states for making a living:

Top 10 states for making a living

illinois

1. Illinois

At $41,986.51, Illinois had the best adjusted-average income. The unemployment rate in Illinois is not especially low, but the state benefits from relatively high average wages, a low state tax rate, and a below-average cost of living. As an added plus, you can make good use of your money once you earn it in Illinois. Four of the best banks in America, based on a MoneyRates analysis of factors like customer service, checking account fees, and savings and money market rates, have operations in Illinois.

 washington

2. Washington

The adjusted-average income here was $41,455.73. The cost of living may be above average, but so is the typical income, and with no state income tax, you’ll get to keep more of what you earn.

 Texas

2. Washington

The adjusted average income here was $41,455.73. The cost of living may be above average, but so is the typical income, and with no state income tax, you’ll get to keep more of what you earn.

 Virginia

5. Delaware

While the adjusted average incomes of the top four states were bunched quite closely, Delaware’s is a clear step back at $39,104.64. Still, this is good enough to rank fifth, largely on the strength of Delaware’s high average wages.

 Delaware

6. Massachusetts

The high cost of living in Massachusetts is counterbalanced by the highest average wage levels of any state, helping Massachusetts rank sixth with an adjusted average income of $38,664.86.

 Massachusetts

7. Georgia

A combination of a low cost of living and solid average wages help Georgia make the list with an adjusted average income of $38,228.47. This is another state where you can take great care of your money once you earn it, with four of the MoneyRates best banks in America having branches in Georgia.

 Georgia

9. Colorado

 High average wages and a reasonable state tax burden helped Colorado make the list, coming in just slightly behind Tennessee with an adjusted average income of $38,020.24.

 Tennessee

8. Tennessee

A very low cost of living helps Tennessee overcome relatively low wage levels, and because the state’s taxes don’t apply to wages, you’ll get to keep more of what you make. Tennessee’s adjusted-average income came in at $38,038.27.

 Colorado

10. Minnesota

Rounding out the top 10 is Minnesota, a state with relatively high average wages and below-average unemployment. These factors contribute to Minnesota’s adjusted average income of $37,721.99.

 Minnesota

3. Texas

Texas is another state with no income tax, and along with a relatively low cost of living and unemployment rate, this gives Texas a good adjusted average income – at $41,427.12, it’s just a little behind Washington’s.

Making a living can be a real challenge in a sluggish economy. The above list might give you some ideas of where you can go to improve your chances.

Is your state not on this list?  Then take a look at the 10 worst states to make a living

Richard Barrington, a Senior Financial Analyst at MoneyRates, brings over three decades of financial services expertise to the table. His insightful analyses and commentary have made him a sought-after voice in media, with appearances on Fox Business News, NPR, and quotes in major publications like The Wall Street Journal and The New York Times. His proficiency is further solidified by the prestigious Chartered Financial Analyst (CFA) designation, highlighting Richard’s depth of knowledge and commitment to financial excellence.