In this article, we will be covering the 25 poorest states in the US in 2024. If you wish to skip our detailed analysis, you can move directly to the 5Poorest States in the US in 2024.
Poverty Across the US: An Analysis
As reported by the US Census Bureau, the official US poverty rate was 11.5% in 2022, with 37.9 million Americans in poverty. Although the rate has not changed substantially since the preceding year, it is still higher than the pre-pandemic rate of 10.5%. Age-wise, the population aged below 18 years had higher poverty rates than 18 to 64-year-olds and those aged above 65 years. Simultaneously, the poverty rate for those without a high school diploma was 25.2%, significantly higher than for those with at least a bachelor’s degree. Region-wise, the Midwestern states were in the middle poverty category, except for Minnesota which had a poverty rate of only 9.6%. In the West, one state was in the highest poverty category while two states were in the lowest. In the South, seven states had a poverty rate of 15% or more.
The rise in poverty in the US can be attributed to several reasons. Inflation and soaring costs of living built financial pressure, ultimately moving many families into the category of poor. US states with the highest inflation rates have also been previously covered. Demographics further aggravate the poverty situation. An analysis of Mississippi, one of the poorest US states, reveals that regions in the state that have the highest levels of poverty are those that host the largest Black populations. The inequality is evident from the fact that Black state residents tend to be thrice more likely to be poor than Whites.
Income serves as a major indicator of poverty since the poverty rate is based on the proportion of people who have their personal or family income below their poverty threshold. In 2022, 6.1% of the U.S. population had income below 50% of their poverty threshold. Mississippi, Louisiana, and Arkansas are some of the states that held the highest proportion of people with an income-to-poverty ratio below 50%. Furthermore, individuals living in near poverty were in high numbers in Mississippi and Arkansas. You can also view the top US states by median household income.
While certain states continue to be a victim of inequalities and poverty, other states lead their way with improved economic conditions. States that boast some of the lowest poverty rates include Minnesota, Washington, and Maryland. Target Corporation (NYSE:TGT), Amazon.com, Inc. (NASDAQ:AMZN), and Marriott International Inc. (NYSE:MAR) are some of the renowned firms operating in the aforementioned states that continue to work for economic prosperity across the country.
Companies Working for Economic Prosperity in the US
Target Corporation (NYSE:TGT) is a leading retail corporation that operates stores in all 50 US states. The company is headquartered in Minnesota which has a low poverty rate of 9.6%. The company engages with the local communities to improve their economic well-being. As a part of its philanthropic efforts, Target Corporation (NYSE:TGT) gives clothing, essentials, and holiday gifts to those in need. The retailer reported that it has also committed to invest $100 million through 2025 to support economic prosperity in Black communities, a group particularly vulnerable to poverty, across the United States.
Washington is known for its strong economic performance since the state boasts a high labor productivity. The poverty rate in the state is 10%. The state hosts many multinational companies including Amazon.com, Inc. (NASDAQ:AMZN). The company has added $205 billion to Washington’s GDP. As of January, 87,000 full-time and part-time jobs have been created by Amazon.com, Inc. (NASDAQ:AMZN) in the state. The firm has also enabled more than 11,000 independent sellers in Washington to sell in the company’s store. You can also take a look at some of the most productive states in the US.
Marriott International, Inc. (NASDAQ:MAR) is an American hospitality firm based in Maryland where only 9.6% of the population lives below the poverty line. Through investment and volunteer activities, the firm supports local communities and community organizations. The TakeCare Relief Fund which is sponsored by the company provided nearly $570,000 in funding to the Greater Washington Community Foundation. In 2022, it also offered over $2.6 million in more than 4,500 needs-based individual grants to associates. The company also contributed $15 million in cash donations. As of 2022, Marriott International, Inc. (NASDAQ:MAR) has engaged in more than 8.9 million volunteer hours.
Without further ado, let’s move to the 25 poorest states in the US in 2024.
25 Poorest States in the US in 2024
25 Poorest States in the US in 2024
Our Methodology:
To compile our list of the 25 poorest states in the US in 2024, we sourced data from the US Census Bureau. We proceeded by choosing the per capita income and the poverty rate. We chose the 25 states with the lowest per capita incomes. We have also incorporated the poverty rates as another metric, for a better analysis. The poverty rate refers to the percentage of the population below the poverty level. Although the title demands 2024 data, the most recent official data available was from 2022 and hence, we utilized that for our research. We have only included states with a poverty rate higher than the official poverty rate of 11.5% in 2022. Poverty rates have also been sourced from the US Census Bureau.
Finally, we ranked the 25 poorest states in the US in descending order of per capita income, supplemented by their respective poverty rates in 2022.
25 Poorest States in the US in 2024
25. Pennsylvania
Per Capita Income: $41,489
Poverty Rate: 11.8%
Pennsylvania ranks among the poorest states in the US in 2024. In 2022, the per capita income in the state was $41,489. The poverty rate was recorded at 11.8%.
24. Florida
Per Capita Income: $40,278
Poverty Rate: 12.7%
In 2022, the per capita income in Florida was recorded at $40,278. The state has a poverty rate of 12.7% and ranks as one of the poorest states in the US in 2024.
23. Arizona
Per Capita Income: $39,819
Poverty Rate: 12.5%
12.5% of Arizona’s population was living below the poverty line in 2022. The per capita income in the state is also lower than in many other states. Hence, Arizona is a relatively poor US state.
22. North Carolina
Per Capita Income: $38,701
Poverty Rate: 12.8%
North Carolina ranks as another poor state in the United States. While the state’s poverty rate was 12.8% in 2022, its per capita income was $38,701.
21. Georgia
Per Capita Income: $38,378
Poverty Rate: 12.7%
With a per capita income of $38,378 and a poverty rate of 12.7% in 2022, Georgia makes it to our list of the 25 poorest states in the US in 2024.
20. Montana
Per Capita Income: $38,329
Poverty Rate: 12.1%
In 2022, Montana’s per capita income was reported to be $38,329. The state had a poverty rate of 12.1% in 2022 and ranks as another poor US state.
19. Nevada
Per Capita Income: $38,183
Poverty Rate: 12.5%
As reported by the US Census Bureau, 12.5% of Nevada’s population was below the poverty level in 2022. Therefore, Nevada ranks as one of the poorest US states in 2024.
18. Michigan
Per Capita Income: $38,151
Poverty Rate: 13.4%
The per capita income in Michigan was $38,151 in 2022. The state has a poverty rate of 13.4%. Hence, Michigan ranks as one of the poorest states in the US in 2024.
17. Texas
Per Capita Income: $38,123
Poverty Rate: 14%
Among all US states, Texas has one of the lowest per capita income. In 2022, the state’s per capita income was $38,123.
16. Wyoming
Per Capita Income: $38,114
Poverty Rate: 11.8%
Wyoming ranks among the poorest US states in 2024. As recorded in 2022, the state has a per capita income of $38,114 and a poverty rate of 11.8%.
15. Ohio
Per Capita Income: $37,932
Poverty Rate: 13.4%
13.4% of the residents in Ohio were living below the poverty line in 2022 while the per capita income was $37,932.
14. Kansas
Per Capita Income: $37,919
Poverty Rate: 12%
As recorded in 2022, Kansas has a per capita income of $37,919 and a poverty rate of 12%. Kansas is one of the poorest US states.
13. South Dakota
Per Capita Income: $37,618
Poverty Rate: 12.5%
The 25 poorest states in the US in 2024 include South Dakota as well. In 2022, the state’s poverty rate was recorded at 12.5% while its per capita income was $37,618.
12. Tennessee
Per Capita Income: $36,704
Poverty Rate: 13.3%
Tennessee ranks as another poor US state in 2024. The per capita income in the state was $36,704 in 2022 while its poverty rate was 13.3%.
11. South Carolina
Per Capita Income: $36,675
Poverty Rate: 14%
South Carolina has a comparatively lower per capita income than other states. In 2022, 14% of the population in South Carolina was reported to be under the poverty line.
10. Missouri
Per Capita Income: $36,640
Poverty Rate: 13.2%
Missouri’s per capita income was last recorded at $36,640 in 2022. The state’s poverty rate was 13.2% which ranks it as one of the poorest US states in 2024.
9. Indiana
Per Capita Income: $35,984
Poverty Rate: 12.6%
With a per capita income of $35,984 and 12.6% of people living below the poverty line in 2022, Indiana ranks as one of the poorest states in the US.
8. Kentucky
Per Capita Income: $33,980
Poverty Rate: 16.5%
The per capita income in Kentucky was $33,980 in 2022. During the same year, 16.5% of the state residents were below the poverty line.
7. New Mexico
Per Capita Income: $33,916
Poverty Rate: 17.6%
New Mexico is another poor US state. This is evident from the fact that the poverty rate in the state was last recorded at 17.6% in 2022.
6. Alabama
Per Capita Income: $33,777
Poverty Rate: 16.2%
In 2022, 16.2% of the population in Alabama was living below the poverty line while the per capita income in the state was $33,777. Hence, Alabama ranks as one of the poorest states in the US in 2024.
