When state populations have high incomes, school districts benefit, local government services can expand and businesses can benefit from more consumer spending.
The national median household income from the latest estimates is $57,617 and has risen 3.3% from $55,775 between 2015 and 2016, according to HomeArea.com, which looked at each state's household income using Census Bureau data.
Idaho saw the biggest percentage increase in median household income at 7.3 percent, and Louisiana saw the largest percentage decrease at 1.3 percent, according to the website.
HomeArea.com concluded that the following states, in ascending order, have the nation's highest median household incomes:
10. California
The Golden State’s median home value was $366,400, while the average median household income was $67,739. The poverty rate was 16 percent and the unemployment rate sits at 11.5 percent.
9. Virginia
The median household income was listed as $68,114, while the median home value stood at $244,600. The median monthly rent including utilities was $1,087.
8. New Hampshire
The median household income was $70,936 in 2016. The median home value was listed at $239,900. New Hampshire has a 9 percent poverty rate and a 7 percent unemployment rate.
7. Connecticut
A median household income of $73,433 was reported for the state. Median home values sat at $278,000. A median monthly rent with utilities was reported at $1,056.
6. Hawaii
The Aloha state dropped three spots for median household income from a year ago. Currently, the data shows the median household income at $74.511. Median home values stood at $503,100.
5. Massachusetts
Moving up two spots since last year, Massachusetts has a median household income of $75,297. The median home value was estimated at $330,100. The state has an 11 percent poverty rate and an 8.9 percent unemployment rate.
4. Washington, D.C.
The nation’s capital dropped two spots with a median household income of $75,506. The median home value was reported at $445,200.
3. New Jersey
The Garden State jumped two spots from last year. New Jersey had an average household income of $76,126 and a median home price at $327,100.
2. Alaska
The average median household income in the state was reported at $76,440. If you want to buy a home, the median price was $241,800. Seniors, those over the age of 65, make up only 8 percent of the population in the state.
1. Maryland
The median household income in the state was $78,945 and the median home value was $292,700. The poverty rate is 10 percent and the unemployment rate is 8.2 percent.
The full report can be viewed here.