25 States with the Lowest Poverty Rates in America

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In this article, we look at 25 states with the lowest poverty rates in America. You can skip our detailed analysis on poverty in the United States, and head over directly to the 10 States with the Lowest Poverty Rates in America.

Poverty rate in the United States has continued to steadily decline over the last decade. 11.2% of the population lived below the poverty line, $27,479 for a family of four, in 2021, compared to 14.8% in 2011, according to the Census Bureau. In terms of demographics, communities most affected by poverty in order are the Native Americans, African Americans, and Hispanics. Similarly, geographically, there are states that are poorer than some of their wealthy counterparts.

New Hampshire has the lowest poverty rate in the US among all 50 states. It is followed by Minnesota and New Jersey at second and third on the list of states with the lowest poverty rates. On the opposite side of the spectrum, Mississippi is the poorest state in the US having the highest poverty in the country with a population of 18.1% living below the poverty line.

The United States is divided by its stark income inequality. One factor why poverty rates are low in some states compared to others is significant corporate presence in these states which leads to production of jobs and economic opportunity. This factor also indicates that these states are business friendly and have optimal economic policies in place.

Maryland is one example. It is not just among the states with the lowest poverty rates, but is also one of the wealthiest states in America in terms of household income. There are at least 10 billionaires and more than 220,000 millionaires in the state.

The world's largest hotel chain, Marriott International, Inc. (NASDAQ:MAR) is headquartered in Bethesda, Maryland. It has over a 100 hotels in the state of Maryland, providing employment to thousands of residents in the hospitality industry. Marriott International, Inc. (NASDAQ:MAR) reported a net income of $757 million in the first quarter of 2023, earing $2.43 per share.

Likewise, the state of New Jersey is home to Johnson & Johnson (NYSE:JNJ), a leading American multinational corporation that produces pharmaceutical, medical, and consumer packaged goods, and is a source of employment for the local community. It was founded in 1886 in New Brunswick, New Jersey, where it still has its corporate head office. The consumer division of Johnson & Johnson (NYSE:JNJ) is located in Skillman. The company is part of the Fortune 500 list of companies in the US having the highest revenue. Merck, Bed Bath & Beyond, and Cognizant are other prominent companies that are headquartered in the state, and contribute to the region's economic success.