Regional Income Inequality Map: Visualizing Economic Disparities (2023)

What if you could visualize income disparities across the U.S. and understand where income is concentrated—helping you identify markets with high purchasing power or underserved opportunities? This interactive map reveals per capita income disparities across states, showing where income is concentrated and where opportunities exist.

The data shows dramatic differences: highest-income states have per capita income 2x+ higher than lowest-income states. Understanding income disparities helps you identify markets with high purchasing power for premium products or underserved markets for value-focused businesses.

Key Takeaways

• Income disparities vary dramatically by state—highest-income states have per capita income 2x+ higher than lowest-income states
• Income concentration reveals market opportunities—high-income states offer premium markets, while lower-income states offer value markets
• Regional patterns show economic structure—understanding income distribution helps identify compatible markets
• Income ratios reveal market segmentation—states with 2:1 income ratios offer different market opportunities
• Location strategy should align with income levels—matching your business to income-appropriate markets maximizes success

Visualize income disparities across the U.S. and understand regional economic differences. This map reveals where income is concentrated and where opportuni

This interactive map visualization shows per capita income disparities across states using color-coded heat maps and income range tooltips. You’ll discover where income is concentrated, which states have highest and lowest per capita income, and what income ratios reveal about market opportunities.

What This Map Shows:

• Per capita income by state (2023) with color-coded visualization
• Income range tooltips showing exact per capita income levels
• State rankings showing highest and lowest income states
• Income ratios comparing highest to lowest income states
• Regional patterns showing income concentration and distribution

Why This Matters: Understanding income disparities helps you identify markets with high purchasing power for premium products or underserved markets for value-focused businesses. Income concentration reveals where opportunities exist for different business models.

Overview

This map uses per capita personal income data from the BEA Regional Economic Accounts:

1. CAINC5 - Per Capita Personal Income - Average income per person in each state
2. State-Level Data - Per capita income for all 50 states (2023)
3. Income Ranges - Color-coded visualization showing income levels
4. Income Ratios - Comparison of highest to lowest income states
5. Regional Patterns - Geographic distribution of income concentration

We visualize:

• Per Capita Income - Average income per person by state
• Income Disparities - Differences between highest and lowest income states
• Income Ratios - How much higher highest-income states are vs. lowest-income states
• Regional Patterns - Geographic concentration of income
• Market Opportunities - Where high-income or value markets exist

The Bureau of Economic Analysis tracks per capita personal income annually through their Regional Economic Accounts. This 2023 analysis covers all 50 states, providing insights into income distribution and market opportunities.

What This Means for You

For Market Segmentation: States with high per capita income ($70,000+) offer premium markets with high purchasing power. Lower-income states ($40,000-) offer value markets with price-sensitive customers.

For Business Model Alignment: Understanding income levels helps match your business model to markets. Premium products/services fit high-income states, while value-focused businesses fit lower-income states.

For Opportunity Identification: Income disparities reveal opportunities. High-income states offer premium opportunities, while lower-income states offer underserved value markets.

For Location Strategy: Matching your business to income-appropriate markets maximizes success. You’re in markets where customers have purchasing power aligned with your pricing.

Data Analysis

This map uses per capita personal income data from the BEA Regional Economic Accounts:

CAINC5 - Per Capita Personal Income

What it measures: Average income per person in each state, showing individual purchasing power and economic well-being.

Why it matters: Per capita income shows customer purchasing power. A state with $70,000 per capita income means customers have higher spending power than a state with $40,000 per capita income.

How to read it:

• High Income ($70,000+): Premium markets with high purchasing power
• Moderate Income ($50,000-$70,000): Average markets with moderate purchasing power
• Lower Income (<$50,000): Value markets with price-sensitive customers

Reading Income Disparities

Income Ratios: Comparison of highest to lowest income states. A 2:1 ratio means highest-income state has 2x the per capita income of lowest-income state.

Income Concentration: Geographic distribution of income. High-income states clustered together vs. dispersed patterns.

Market Segmentation: Income levels reveal market types:

• Premium Markets ($70,000+): High-income states with high purchasing power
• Value Markets (<$50,000): Lower-income states with price-sensitive customers
• Mixed Markets ($50,000-$70,000): Average-income states with moderate purchasing power

Regional Patterns: Geographic concentration of income. Understanding regional patterns helps identify compatible markets.

State-by-State Income Comparison

Based on per capita income data for 2023, here are the income tiers:

Top 15 Highest Per Capita Income States (2023)

1. Connecticut - $85,000+ per capita - Financial services and high-tech industries
2. Massachusetts - $82,000+ per capita - Technology and financial services
3. New Jersey - $80,000+ per capita - Finance and professional services
4. New York - $78,000+ per capita - Finance, technology, and professional services
5. Maryland - $76,000+ per capita - Federal government and technology
6. Alaska - $75,000+ per capita - Energy and natural resources
7. Hawaii - $74,000+ per capita - Tourism and military
8. California - $73,000+ per capita - Technology and entertainment
9. New Hampshire - $72,000+ per capita - Technology and business services
10. Delaware - $71,000+ per capita - Finance and business services
11. Washington - $70,000+ per capita - Technology and aerospace
12. Minnesota - $68,000+ per capita - Diverse economy with technology
13. Illinois - $67,000+ per capita - Finance and professional services
14. Colorado - $66,000+ per capita - Technology and energy
15. Virginia - $65,000+ per capita - Federal government and technology

Lowest 10 Per Capita Income States (2023)

1. Mississippi - $42,000- per capita - Lower cost of living, value markets
2. West Virginia - $43,000- per capita - Energy and manufacturing
3. Arkansas - $44,000- per capita - Agriculture and manufacturing
4. New Mexico - $45,000- per capita - Energy and government
5. Alabama - $46,000- per capita - Manufacturing and agriculture
6. Kentucky - $47,000- per capita - Manufacturing and agriculture
7. Louisiana - $48,000- per capita - Energy and manufacturing
8. Oklahoma - $49,000- per capita - Energy and agriculture
9. South Carolina - $50,000- per capita - Manufacturing and tourism
10. Tennessee - $51,000- per capita - Manufacturing and business services

What Income Disparities Reveal

Income Ratios: Highest-income states (Connecticut $85,000+) have 2x+ the per capita income of lowest-income states (Mississippi $42,000-). This 2:1 ratio reveals significant market segmentation opportunities.

Market Opportunities:

• Premium Markets: High-income states offer premium product/service opportunities with high purchasing power
• Value Markets: Lower-income states offer value-focused business opportunities with price-sensitive customers
• Mixed Markets: Moderate-income states offer balanced opportunities for various business models

Regional Patterns: Income concentration shows geographic patterns. Northeast and West Coast states tend to have higher income, while Southeast and some Midwest states have lower income.

Key Insights

Income Disparities Create Market Segmentation

The Numbers: Highest-income states (Connecticut $85,000+) have 2x+ the per capita income of lowest-income states (Mississippi $42,000-). This 2:1 ratio creates distinct market segments.

So What? Income disparities reveal market segmentation opportunities. High-income states offer premium markets with high purchasing power, while lower-income states offer value markets with price-sensitive customers.

Income Concentration Reveals Market Opportunities

The Numbers: States with $70,000+ per capita income represent premium markets, while states with <$50,000 represent value markets. This $20,000+ difference creates distinct business opportunities.

So What? Income concentration reveals where opportunities exist. Premium markets offer high-margin opportunities, while value markets offer volume opportunities.

Regional Patterns Show Economic Structure

The Numbers: Northeast and West Coast states tend to have higher income ($70,000+), while Southeast and some Midwest states have lower income (<$50,000). This regional pattern shows economic structure.

So What? Regional patterns help identify compatible markets. Understanding regional income distribution helps match your business model to appropriate markets.

Location Strategy Should Align with Income Levels

The Numbers: Matching your business to income-appropriate markets maximizes success. Premium products/services fit high-income states, while value-focused businesses fit lower-income states.

So What? Location strategy should align with income levels. You’re in markets where customers have purchasing power aligned with your pricing.

How to Use This

1. For Market Segmentation: Use income levels to identify premium vs. value markets. High-income states ($70,000+) offer premium opportunities, while lower-income states (<$50,000) offer value opportunities.

2. For Business Model Alignment: Match your business model to income-appropriate markets. Premium products/services fit high-income states, while value-focused businesses fit lower-income states.

3. For Opportunity Identification: Income disparities reveal opportunities. High-income states offer premium opportunities, while lower-income states offer underserved value markets.

4. For Location Strategy: Target income-appropriate markets. Matching your business to income levels maximizes success.

Red Flags

• Mismatched Pricing: Premium pricing in lower-income states may face price resistance
• Value Pricing in High-Income States: Value-focused pricing in high-income states may leave money on the table
• Ignoring Regional Patterns: Not considering regional income patterns may lead to market misalignment

Green Lights

• Aligned Pricing: Premium pricing in high-income states ($70,000+) offers best opportunities
• Value Focus in Lower-Income States: Value-focused businesses in lower-income states (<$50,000) offer volume opportunities
• Regional Understanding: Understanding regional income patterns helps identify compatible markets

How to Use This Map

Follow this step-by-step process to identify income-appropriate markets and position your business strategically:

Step 1: Explore the Interactive Map

Use the map to see:

• Per Capita Income by State: Color-coded visualization showing income levels
• Income Range Tooltips: Exact per capita income when hovering over states
• Income Ratios: Comparison of highest to lowest income states
• Regional Patterns: Geographic concentration of income

Action: Identify your top 10-15 candidate states based on income levels that match your business model.

Step 2: Analyze Income Tiers

For each candidate state, examine:

• Premium Markets ($70,000+): High-income states with high purchasing power
• Moderate Markets ($50,000-$70,000): Average-income states with moderate purchasing power
• Value Markets (<$50,000): Lower-income states with price-sensitive customers

Action: Categorize candidate states into income tiers matching your business model.

Step 3: Assess Market Alignment

Evaluate market alignment:

• Premium Products/Services: Target high-income states ($70,000+) for premium markets
• Value-Focused Businesses: Target lower-income states (<$50,000) for value markets
• Mixed Models: Moderate-income states ($50,000-$70,000) offer balanced opportunities

Action: Identify states with income levels that align with your pricing and business model.

Step 4: Compare Regional Patterns

Research regional income patterns:

• Northeast/West Coast: Higher income states ($70,000+) offer premium markets
• Southeast/Midwest: Lower income states (<$50,000) offer value markets
• Regional Clusters: Understanding regional patterns helps identify compatible markets

Action: Match regional income patterns to your business model and target markets.

Step 5: Make Your Decision

Combine income data with other factors:

• Income level alignment (40%)
• Regional patterns (25%)
• Market size (20%)
• Business climate (15%)

Action: Create a decision matrix scoring each state and select your optimal income-appropriate location.

Common Use Cases

Use Case 1: Premium Products/Services → Target high-income states ($70,000+). Premium markets offer high purchasing power and high-margin opportunities.

Use Case 2: Value-Focused Businesses → Prioritize lower-income states (<$50,000). Value markets offer price-sensitive customers and volume opportunities.

Use Case 3: Market Segmentation → Use income levels to segment markets. High-income states for premium, lower-income states for value.

Use Case 4: Regional Expansion → Understand regional income patterns. Northeast/West Coast for premium, Southeast/Midwest for value.

Questions to Ask Yourself

• What income level matches my pricing and business model?
• Is premium market or value market more important?
• How important is regional income pattern vs. individual state income?
• What income tier aligns with my target customers?
• What’s my priority: high-margin premium or volume value?

Action Items Checklist

• Explore interactive map to see per capita income by state
• Analyze income tiers (premium, moderate, value)
• Assess market alignment with your business model
• Compare regional income patterns
• Categorize candidate states by income tier
• Evaluate income level alignment with pricing
• Create decision matrix combining income and other factors
• Consult with Business Initiative for state registration guidance

Best Practices & Tips

Industry-Specific Recommendations

Premium Products/Services: Target high-income states ($70,000+). Premium markets offer high purchasing power and high-margin opportunities (Connecticut, Massachusetts, New Jersey, New York).

Value-Focused Businesses: Focus on lower-income states (<$50,000). Value markets offer price-sensitive customers and volume opportunities (Mississippi, West Virginia, Arkansas).

Mixed Business Models: Consider moderate-income states ($50,000-$70,000). Balanced markets offer opportunities for various business models.

B2B Services: Target states with high business income regardless of per capita income. Business services depend on business activity, not just consumer income.

Consumer Goods: Match product pricing to state income levels. Premium products in high-income states, value products in lower-income states.

Common Mistakes to Avoid

Mistake 1: Ignoring Income Alignment Focusing only on market size misses income alignment. A large market with low income may not support premium pricing.

Mistake 2: Not Matching Pricing to Income Premium pricing in lower-income states may face price resistance. Value pricing in high-income states may leave money on the table.

Mistake 3: Ignoring Regional Patterns Not considering regional income patterns may lead to market misalignment. Understanding regional patterns helps identify compatible markets.

Mistake 4: Overlooking Cost of Living Not adjusting for cost of living. High-income states often have higher costs, affecting purchasing power.

Mistake 5: One-Size-Fits-All Thinking What works for a premium business may not work for a value business. Match income characteristics to your specific business model.

Optimization Strategies

For Premium Markets: Target top 10 highest-income states ($70,000+). Premium markets offer high purchasing power and high-margin opportunities.

For Value Markets: Focus on lower-income states (<$50,000). Value markets offer price-sensitive customers and volume opportunities.

For Balanced Approach: Choose moderate-income states ($50,000-$70,000). Balanced markets offer opportunities for various business models.

For Regional Expansion: Understand regional income patterns. Northeast/West Coast for premium, Southeast/Midwest for value.

Timing Considerations

Best Time to Enter Premium Markets: When you have premium products/services ready. Premium markets reward businesses offering high-value products.

Best Time to Enter Value Markets: When you have value-focused business model ready. Value markets reward businesses offering affordable solutions.

When to Reassess: Review income levels annually. State positions change, and what was optimal 3 years ago may not be today.

Resource Recommendations

For Income Research:

• BEA Regional Economic Accounts (official per capita income data)
• Cost of living adjustments
• State economic development websites
• Market research on purchasing power

For Registration Support:

• Business Initiative state registration services
• State Secretary of State websites
• Local business development centers

FAQs - Frequently Asked Questions About Regional Income Inequality Map: Visualizing…

In Summary

This map visualizes income disparities across the U.S. and reveals where income is concentrated, helping you understand regional economic differences and identify market opportunities.

Key Findings:

• Income disparities vary dramatically by state—highest-income states have per capita income 2x+ higher than lowest-income states
• Income concentration reveals market opportunities—high-income states offer premium markets, while lower-income states offer value markets
• Regional patterns show economic structure—understanding income distribution helps identify compatible markets
• Income ratios reveal market segmentation—states with 2:1 income ratios offer different market opportunities
• Location strategy should align with income levels—matching your business to income-appropriate markets maximizes success

What This Means for Your Business:

Understanding income disparities helps you identify markets with high purchasing power for premium products or underserved markets for value-focused businesses. Income concentration reveals where opportunities exist for different business models. Matching your business to income-appropriate markets maximizes your chances of success by aligning customer purchasing power with your pricing.

Practical Applications:

• Market Segmentation: Use income levels to identify premium vs. value markets for strategic positioning
• Business Model Alignment: Match your business model to income-appropriate markets for optimal success
• Opportunity Identification: Income disparities reveal premium opportunities in high-income states and value opportunities in lower-income states
• Location Strategy: Target income-appropriate markets to maximize success

Next Steps:

1. Explore the interactive map to see per capita income by state and identify income tiers
2. Analyze income alignment with your business model and pricing strategy
3. Compare regional income patterns to identify compatible markets
4. Categorize candidate states by income tier (premium, moderate, value)
5. Consult with Business Initiative for expert guidance on state registration and market entry

By leveraging this map, you can position your business in income-appropriate markets that maximize your opportunities and support long-term success.

Ready to take action based on this map?

Now that you can visualize income disparities, it’s time to position your business in income-appropriate markets.

Next Steps:

1. Explore the Map: Use the interactive visualization to examine per capita income for all 50 states. Identify income tiers (premium, moderate, value) that align with your business model and pricing strategy.

2. Compare State Statistics: Use our state-specific business formation statistics to understand entrepreneurial activity levels:
   • State Statistics Overview
   • Explore business formation data by state to see where entrepreneurs are most active

3. Plan Your Registration: Once you’ve identified income-appropriate states, Business Initiative can help you register your business with expert guidance on state requirements, tax optimization, and compliance.

4. Validate Your Market: Combine income data with industry-specific statistics to validate market opportunity before committing to a location.

Business Initiative offers expert services to help you leverage this map:

• State Registration Services: Get expert guidance on registering in income-appropriate states that maximize your market opportunity
• Tax Optimization: Understand how state selection impacts your tax obligations based on income levels
• Market Analysis: Combine income data with industry statistics for comprehensive market validation
• Strategic Planning: Work with our team to develop a location strategy based on income-driven insights

For personalized advice, schedule a consultation with Business Initiative or reach out through our contact form.

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