Why Kentucky Ranks 41st While Virginia Tops Income Charts

While states like Virginia, New Jersey, and New York top the list, Kentucky has a very different economic reality. It's heartbreaking to see residents struggle to make ends meet, but there's always hope.

Photo by Alexander Grey on Unsplash

Across communities throughout the Commonwealth, many of our neighbors are struggling financially. While numerous non-profits step up to offer support and help people regain stability, the need remains overwhelming. This new study sheds light on why many still face hardship despite these efforts.

Insights From the 2025 New Income Study

With the median annual income in the U.S. at approximately $81,000, WalletHub has released its 2025 report on the States Where People Have the Highest Income. The report reveals how income levels vary across the country by analyzing all 50 states and the District of Columbia using three key metrics: the average income of the top 5%, the median income, and the average income of the bottom 20%.

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Kentucky’s Income Gap

Kentucky ranks 41st overall in WalletHub’s 2025 income report with a total score of 28.57. Despite the top 5% earning an average annual income of about $427,000 (adjusted for cost of living), the state’s median income is much lower at roughly $57,700, the bottom 20% earn just around $14,100 showing how hard it is for average Kentuckians to achieve financial stability compared to residents of the highest-ranking states. There is work that needs to be done to close this gap.

Why Kentucky Ranks 41st in Income

This poor ranking is largely due to high poverty rates, limited access to higher education, and healthcare challenges. About 16% of residents live below the poverty line, and the state has fewer college graduates compared to the national average, which affects job opportunities and economic mobility. Health issues and healthcare access also impact overall productivity. Kentucky’s economy also heavily depends on federal funding, reflecting limited economic independence. These factors contribute to its relatively low ranking in income and financial well-being.

State-By-State Breakdown

Source: WalletHub

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median income Kentucky vs Virginia

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Filed Under: Kentucky