15 States Where People Have the Least Disposable Income

Editor's Note: This story originally appeared on Captain Experiences.

After a tumultuous year marked by high interest rates, inflation, and multiple rounds of layoffs, many economists had pessimistic forecasts for 2023, some all but guaranteeing a recession. Despite interest rates reaching a 22-year high at the end of 2023, the U.S. economy defied expectations and continued to grow.

According to the Bureau of Economic Analysis, consumer spending was a significant factor driving economic growth, reporting a 4.2% increase in disposable income in the U.S. in the fourth quarter of 2023.

While retail spending continues to show strength, rising costs are beginning to take their toll. Although disposable income — or the income remaining after taxes — showed an overall increase in 2023, the personal savings rate — or the percentage of disposable income saved — decreased overall, indicating that Americans are spending more and saving less.

Despite a strong job market and low unemployment rate, Americans are still struggling to keep up with the rising cost of living.

In the U.S., disposable income varies geographically. The following is a breakdown of the areas with the least disposable income.

The analysis was conducted by researchers at Captain Experiences using data from the Bureau of Economic Analysis. For more information on how each statistic was computed, refer to the methodology section at the end.

15. Utah

• After-tax income per capita (adjusted): $53,990
• After-tax income per capita: $51,005
• Before-tax income per capita: $59,457
• Personal taxes paid per capita: $8,452
• Cost of living (compared to average): -5.5%

14. North Carolina

• After-tax income per capita (adjusted): $53,756
• After-tax income per capita: $50,640
• Before-tax income per capita: $58,109
• Personal taxes paid per capita: $7,469
• Cost of living (compared to average): -5.8%

13. Michigan

• After-tax income per capita (adjusted): $53,187
• After-tax income per capita: $49,692
• Before-tax income per capita: $57,038
• Personal taxes paid per capita: $7,346
• Cost of living (compared to average): -6.6%

12. Maine

• After-tax income per capita (adjusted): $52,570
• After-tax income per capita: $53,011
• Before-tax income per capita: $60,599
• Personal taxes paid per capita: $7,588
• Cost of living (compared to average): +0.8%

11. Rhode Island

• After-tax income per capita (adjusted): $52,237
• After-tax income per capita: $54,692
• Before-tax income per capita: $63,557
• Personal taxes paid per capita: $8,865
• Cost of living (compared to average): +4.7%

10. New Mexico

• After-tax income per capita (adjusted): $51,960
• After-tax income per capita: $47,274
• Before-tax income per capita: $52,194
• Personal taxes paid per capita: $4,920
• Cost of living (compared to average): -9.0%

9. Alabama

• After-tax income per capita (adjusted): $51,549
• After-tax income per capita: $45,248
• Before-tax income per capita: $50,916
• Personal taxes paid per capita: $5,668
• Cost of living (compared to average): -12.2%

8. Kentucky

• After-tax income per capita (adjusted): $51,347
• After-tax income per capita: $45,882
• Before-tax income per capita: $51,921
• Personal taxes paid per capita: $6,039
• Cost of living (compared to average): -10.6%

7. Arizona

• After-tax income per capita (adjusted): $51,301
• After-tax income per capita: $51,248
• Before-tax income per capita: $58,442
• Personal taxes paid per capita: $7,194
• Cost of living (compared to average): -0.1%

6. Georgia

• After-tax income per capita (adjusted): $51,048
• After-tax income per capita: $48,920
• Before-tax income per capita: $56,589
• Personal taxes paid per capita: $7,669
• Cost of living (compared to average): -4.2%

5. West Virginia

• After-tax income per capita (adjusted): $50,489
• After-tax income per capita: $45,059
• Before-tax income per capita: $49,993
• Personal taxes paid per capita: $4,934
• Cost of living (compared to average): -10.8%

4. South Carolina

• After-tax income per capita (adjusted): $50,302
• After-tax income per capita: $47,058
• Before-tax income per capita: $53,618
• Personal taxes paid per capita: $6,560
• Cost of living (compared to average): -6.4%

3. Oregon

• After-tax income per capita (adjusted): $49,809
• After-tax income per capita: $53,079
• Before-tax income per capita: $62,303
• Personal taxes paid per capita: $9,224
• Cost of living (compared to average): +6.6%

2. Mississippi

• After-tax income per capita (adjusted): $48,289
• After-tax income per capita: $42,170
• Before-tax income per capita: $46,370
• Personal taxes paid per capita: $4,200
• Cost of living (compared to average): -12.7%

1. Hawaii

• After-tax income per capita (adjusted): $47,894
• After-tax income per capita: $53,085
• Before-tax income per capita: $61,779
• Personal taxes paid per capita: $8,694
• Cost of living (compared to average): +10.8%

Methodology

To find the locations with the least disposable income, researchers at Captain Experiences analyzed the latest data from the Bureau of Economic Analysis’ Regional Economic Accounts.

The researchers ranked states according to the per capita after-tax income after adjusting for the cost of living.

For additional context, the unadjusted per capita after-tax income, per capita before-tax income, per capita personal taxes paid, and cost of living were also calculated.