10 States with the Highest Poverty Levels

04/05/2024

49. Mississippi

Despite its occasional economic hiccups, the United States remains one of the richest countries in the world. As of 2022 it ranked 7^th globally in GDP per capita, according to data cited by Visual Capitalist. But that doesn’t mean all Americans share the wealth equally. In fact, there is a major wealth gap between the richest and poorest, and that gap is reflected in the states with the highest and lowest poverty levels.

Check Out: 6 Reasons the Poor Stay Poor and Middle Class Doesn’t Become Wealthy

Research released last year by the Census Bureau found that the official U.S. poverty rate was 11.5% across the United States in 2022, the most recent year data are available. That was little changed from the previous year.

However, there were pockets of the population where poverty increased — including among children, whose poverty rate more than doubled from 2021 to 2022. That was partly due to the end of the expanded child tax credit introduced during the COVID-19 pandemic.

Insider Monkey recently analyzed the Census Bureau data and found that the U.S. poverty rate has risen from pre-pandemic levels, mainly because soaring inflation moved many families “into the category of poor.”

Geography also played a role. States with larger-than-average Black populations, such as Mississippi, tend to show up among the states with the highest poverty levels. The reason is simple: due to inequities in pay and job prospects, Blacks in Mississippi are about three times more likely to be poor than White residents.

Separate research conducted by professors at Princeton University and the University of Michigan found that the most disadvantaged populations live in rural areas. Most were majority Black or Hispanic, with many disadvantaged areas having a large Native American population as well.

Different studies come to different conclusions about which states have the highest poverty levels. However, the same states tend to show up no matter who conducted the study. Many of those states are concentrated either in the South or bordering the South.

Learn More: How Much Does the Average Middle-Class Person Have in Savings?

Here’s a look at the 10 states with the highest poverty levels, according to Insider Monkey:

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10. Missouri

Per Capita Income: $36,640.
Poverty Rate: 13.2%.

9. Indiana

Per Capita Income: $35,984.
Poverty Rate: 12.6%.

8. Kentucky

Per Capita Income: $33,980.
Poverty Rate: 16.5%.

7. New Mexico

Per Capita Income: $33,916.
Poverty Rate: 17.6%.

6. Alabama

Per Capita Income: $33,777.
Poverty Rate: 16.2%.

5. Oklahoma

Per Capita Income: $32,930.
Poverty Rate: 15.7%.

4. Louisiana

Per Capita Income: $32,171.
Poverty Rate: 18.6%.

3. West Virginia

Per Capita Income: $31,922.
Poverty Rate: 17.9%.

2. Arkansas

Per Capita Income: $31,380.
Poverty Rate: 16.8%.

1. Mississippi

Per Capita Income: $29,045.
Poverty Rate: 19.1%.