
New Jersey, Connecticut and Alaska are the states with the highest average take home pay in America, according to a new report.

Researchers at GoBankrate crunched the numbers to find the average (mean) pre-tax salary for each state, then calculated how much would come out of those pay checks for state and federal taxes.

The highest after-tax salaries were concentrated in the Northeast - where salaries tend to be higher. The lowest were in the South - a region with a high concentration of poverty and lower cost-of-living - with West Virginia and Mississippi tying for last place.

New Jersey and Connecticut ranked highly thanks to average pay that comes in higher than the national average, while Alaska benefited from having no state income tax.

New Jersey topped the list, with residents taking home an average $72,337 after taxes on the average $101,634 salary in that state.

This map illustrates how much residents take home after taxes on the average salary in each state. The darker green shades represent higher incomes, while darker blue shades indicate the lower range of post-tax income

New Jersey has a progressive income tax, charging 5.525 percent on those earning $40,000-$75,000 and 6.37 percent on earners making $75,001-$500,000.

Connecticut came in second, with a $72,326 take home salary on the average salary of $102,616 in that state – the highest pre-tax average income in the nation.

Connecticut also has a progressive income tax, billing residents 5 percent on incomes of $10,000-$50,000; 5.5 percent on incomes of $50,001-$100,000; and 6 percent on those making $100,000-$200,000.

Alaska came in third with a $70,607 take home salary on an average $92,191 – despite that being a lower pre-tax salary than many of the high-income states in the Northeast.

The reason is that Alaska has no state income tax, allowing residents to hold onto more of their money – though the state is one of the most expensive places to live in America.

States with Tax Breaks No Income Tax: Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming No Sales Tax: Alaska Delaware Montana New Hampshire Oregon


Massachusetts came in fourth place at $69,460 in take home pay on an average $97,295 salary. The state recently lowered its income tax to 5.05 percent.

Next on the list was Maryland, with a $68,451 take-home pay after taxes on the average pre-tax salary of $100,071 (third-highest nationwide).

New Hampshire ranked six ($67,625 take home on an average salary of $87,900), followed by Virginia ($64,969 on $90,881 pre-tax); Washington ($64,897 on $84,022 pre-tax); California ($63,880 on roughly $90,000); and New York ($63,789 on $89,397).

At the other end of the spectrum, West Virginia tied Mississippi for dead last, with a $43,182 take home salary on an average income of $57,779 before taxes.

Mississippi also had $43,182 take home pay on the slightly lower average pre-tax income of $56,358.

Arkansas was third-from the bottom, with a take home pay of $44,246 on a pre-tax income of $58,850.

Alabama followed, with a take home of $46,446 on an average income of $62,061 before taxes.

South Carolina was next with a take home of $47,047 on a pre-tax salary of $64,115, followed by Idaho ($47,115 on $64,513 pre-tax); New Mexico ($47,647 on $63,057 pre-tax); Montana ($48,409 on $65,401 pre-tax; and Oklahoma ($49,118 on $65,458 pre-tax).