The 6 best U.S. states for boosting your income — and why
New data shows which U.S. states saw the fastest personal income growth in 2025. Discover where earnings, transfers, and spending rose the most
States don’t grow at the same pace. In the second quarter of 2025, personal income rose everywhere in the U.S., but some states pulled far ahead of others.
The U.S. Bureau of Economic Analysis’s latest quarterly state data suggests that income growth was anything but uniform in the second quarter of 2025. Nationally, personal income rose at a 5.5% annualized rate. State results diverged sharply, ranging from a standout 10.4% increase in Kansas to just 0.9% in Arkansas. The District of Columbia posted a 4.9% gain, close to but still trailing the national pace.
Those gaps reflect how differently income components are moving across states. Personal income rises or falls based on shifts in earnings, transfer receipts such as retirement and Social Security payments, and property income from dividends, interest, and rent.
According to the report, all three components contributed to growth at both the national level and in most states. Only earnings declined in Arkansas and Mississippi, underscoring how much labor income still matters.
Here are 6 of the best states for boosting your income, according to the analysis.
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Kansas leads all states in personal income growth
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According to the data, Kansas posted the biggest jump in personal income at 10.4% annualized, nearly double the national growth rate. This surge was driven by the strongest earnings growth in the country — 12.2%— highlighting an especially dynamic labor market.
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Massachusetts’ transfer receipts fuel income gains
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Massachusetts saw the widest jump in transfer receipts at 23.8%, according to the report. This is far above the national average of 14.4%, pushing overall personal income growth higher.
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Tennessee shows solid transfer growth
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According to the report, Tennessee’s transfer receipts climbed 5.5%, the lowest of states cited but still contributing meaningfully to income gains there. Transfer payments were the largest contributor to growth in 29 states overall.
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Wyoming tops states in property income gains
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Wyoming led states in property income growth at 1.4%, according to the data, outpacing most others in asset-based income. Even though property income’s share of total growth was small, it provided a steady underpinning everywhere.
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District of Columbia income grows near national pace
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The report shows that the District of Columbia’s personal income rose 4.9%, slightly below the U.S. average but stronger than many states. Its diversified economy supports a balanced mix of earnings and transfer income.
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PCE growth highlights spending strength in Florida and DC
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Florida’s personal consumption expenditures climbed 7.0%, according to the data. This is the strongest of any state, while the District of Columbia’s PCE rose 6.6% — both above the U.S. average of 5.6%. These figures suggest robust consumer demand where income is rising fastest.