Maryland Wealth Ranking Soars to Third Nationally, Fueled by High Incomes and Purchasing Power

Maryland has secured the third spot in a new national study that measures the true wealth of states. The research analyzed key economic indicators including median household income, GDP per capita, and annual cost of living. Maryland earned a Wealth Score of 90.01 out of 100, ranking just behind California and New Hampshire.

The study, conducted by the QuickBooks data automation platform Dancing Numbers, deliberately prioritized disposable income. This metric reveals the money residents have left after covering basic living costs, providing a clearer picture of genuine financial health and purchasing power.

High Earnings and Strategic Location Drive Success

Maryland’s high ranking is primarily supported by its substantial earnings. The state boasts a strong median household income of $109,700 and a significant GDP per capita of $546,028.

According to the study’s findings, the average annual cost of living in Maryland sits at $54,427 for a single adult. Subtracting this from the mean annual wage leaves residents with an impressive disposable income of $55,273.

“Maryland residents benefit from high-paying government and tech sector jobs while avoiding the extreme housing costs seen in some coastal metros,” explained Punit K. Jindal, Founder of Dancing Numbers.

Disposable Income as the True Measure of Wealth

The study highlights why states with the highest overall GDP don’t always top the personal wealth chart. While California took the number one rank overall, its high annual living expenses of nearly $60,000 meant residents had less disposable income than those in Maryland.

New Hampshire, ranking second overall, demonstrated the power of lower costs. It led the nation in disposable income at $60,248, showing that high earnings alone are not the full story.

“Understanding true wealth means looking at the complete picture. Income figures tell only part of the story. What matters is purchasing power,” Jindal said. This focus on money left after bills makes the Maryland wealth ranking particularly significant.

Maryland’s wealth ranking reflects a powerful economic balance. The state combines high-value jobs with manageable living costs. This creates real, spendable prosperity for its residents.

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What is the main reason for Maryland’s high wealth ranking?

Maryland’s high wealth ranking is due to its strong median household income combined with a manageable cost of living. This balance results in high disposable income, which is the money residents have left after paying for essentials.

Which states ranked first and second in the study?

California ranked first overall with a perfect Wealth Score of 100. New Hampshire secured the second-place position with a score of 97.84, largely due to having the highest disposable income in the nation.

How does Maryland’s cost of living compare to California’s?

Maryland’s annual cost of living is lower than California’s. The study found Maryland’s cost for a single adult is $54,427, while California’s is nearly $60,000, giving Maryland residents more financial flexibility.

What industries support Maryland’s strong economy?

Maryland’s economy is heavily boosted by high-value sectors like federal contracting, biotech, and cybersecurity. These industries, often linked to its proximity to Washington, D.C., generate the high-paying jobs that anchor its wealth.

Why did the study focus on disposable income?

The study focused on disposable income because it is a better indicator of true financial health. It shows the actual purchasing power residents have after covering basic needs, rather than just their gross earnings.