IRS data reveals income distribution across states

The District of Columbia, Massachusetts, Connecticut and Washington State appeared to have the highest incomes on average, according to new research based on tax information.

Syracuse University's Transactional Records Clearinghouse reported Thursday that adjusted gross income averaged $111,494 in D.C. in 2021, followed by Massachusetts at $101,863, Connecticut at $101,589 and Washington State at $95,584. For the U.S. as a whole, the average AGI reported on federal income tax returns filed in 2021 increased to $76,539, up only slightly from $75,758 in 2020. 

The lowest AGI in the country, at only half that of the top three states, was Mississippi at $50,876. West Virginia had the second lowest income at $53,461, while New Mexico returns reported an average AGI of $56,383, the third lowest. 

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The TRAC research also looked at the average number of dependents reported on federal income tax returns, which fell to 1.83 in 2021. The figure has been slowly declining over the past decade, down from an average of 2.01 dependents reported on returns filed in 2011. 

However, there's a great deal of variation in these numbers across different counties. Reported averages varied from a high of 2.5 in Loving County, Texas and 2.44 in Morgan County, Utah to a low of 1.43 in Forest County, Pennsylvania and 1.48 in Manhattan, New York. 

Urban counties in the Northeast and along the coasts tended to report fewer dependents in families, though many rural counties across the U.S. also reported an average of fewer than 2.0 dependents.

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