income news

Texas residents earn 11th highest income in U.S. for 2026, study says

The highest-earning Texans make over half a million dollars a year.

A new WalletHub study comparing income disparities across America has ranked Texas residents No. 11 on the list of states with the highest earning residents in the nation.

The report, "States Where People Have the Highest Income (2026)," analyzed U.S. Census Bureau income data in all 50 states and the District of Columbia. The report evaluated the average annual income of the top five percent, the median annual household income, and the average annual income of the bottom 20 percent of residents in every state, all adjusted for the cost of living.

The report's data revealed the top five percent of Texans, the highest earners, make $520,378 on average yearly after adjusting for the cost of living. That's the seventh-highest income among the top five percent of earners nationwide.

Meanwhile, the median annual income of a Texas household is just under $76,000. The bottom 20 percent of Texas residents make $17,651 a year, the report found.

For additional context, the latest data from the Federal Reserve shows an American household's median yearly income is about $83,700. WalletHub analyst Chip Lupo also found that the highest earning 10 percent of individuals in the U.S. earn over 12 times more than those in the lowest-earning 10 percent, based on the latest Census data.

"By measuring the income of various percentiles against a state's median income, we can better identify where income disparities are more prevalent, which could help us better understand why residents of certain states struggle more to make ends meet," said Lupo.

Virginia is the state where residents earn the highest income in the U.S., WalletHub said. Based on the report's findings, the top five percent of Virginians make $545,097 on average per year after adjusting for the cost of living. The median annual income of a Virginia household comes out to $95,339, and the bottom 20 percent of residents make $19,671 annually on average.

Conversely, West Virginia is the state where people have the lowest income in the U.S. A West Virginia household makes a median annual income of $56,610, the third-lowest nationally, and the bottom 20 percent of residents make $13,260 on average per year, which is the fifth-lowest in the nation. The top five percent of West Virginians make $372,218 on average per year.

The top 10 states where residents have the highest income are:

No. 1 – Virginia
No. 2 – New York
No. 3 – New Jersey
No. 4 – Washington
No. 5 – Connecticut
No. 6 – Utah
No. 7 – Colorado
No. 8 – Minnesota
No. 9 – Illinois
No. 10 – Massachusetts

income wallethub reports texas

This Week's Hot Headlines

Killen to close Michelin-rated Houston restaurant and more top stories

Courtesy of Killen's Restaurants

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Editor's note: It's time to catch up on the top Houston stories of the week, from a major closure announcement to big news for Texas hockey fans. Read on for our most popular headlines, then find the best weekend events here.

1. Ronnie Killen sets closing date for his Michelin-rated comfort food eatery. Since the Michelin Guide’s arrival in Texas, it has been rare for any included restaurant to close, but Killen’s, chef Ronnie Killen’s Southern restaurant that holds a Bib Gourmand designation, will serve its final meal in July.

2. Shuttered Houston restaurant revived for 1 night only at Canada Day pop-up. Favorite dishes from Riel will return at Chardon this Sunday, June 28 for an event called “Booze Can Sunday.”

3. NHL taps Houston billionaire to launch new Texas hockey franchise. The NHL has committed to adding a team in the Lone Star State, according to multiple media reports, and as part of those plans has reached an agreement with Pursuit Sports, an arm of the Houston-based Friedkin family.

4. Cherished Houston Indo-Pak restaurant opens to-go only location in Katy. Aga’s Restaurant & Catering, the cherished Indo-Pak restaurant that’s a staple of Houston’s South Asian community, opened its first new location in 25 years.

Aga's to go Katy exterior Aga's To Go opened Wednesday, June 24. Courtesy of Aga's

5. Swedish furniture giant IKEA sets opening date for new Houston store. Swedish furniture giant IKEA's second full-service Houston-area store is now open in Webster.