Households in this state experienced a 17% increase in income within one year, contrary to popular belief that it is Florida, Texas, or New York.

According to the latest Census Bureau Current Population Survey estimates, the national household median income increased by approximately 4% from 2022 to 2023.

Since 2019, Americans have not seen a significant annual increase in median household income until 2023, according to the Bureau. From 2018 to 2019, the national median household income grew about 7%. However, it remained stagnant or decreased slightly until 2023.

South Dakota experienced the most significant income growth at the state level, with both an absolute increase and a percentage increase.

In 2023, the median household income in that area was $81,740, a $11,890 increase from the previous year's $69,850, representing a 17% rise, according to Census Bureau data.

According to a Pew analysis of Census Bureau data, South Dakota is one of the fastest-growing states in the country in terms of population growth. A SmartAsset ranking places South Dakota at No. 21 in the list of states with the highest net inflow of households earning $200,000 a year or more, indicating that many of the people moving into the state are bringing higher salaries with them.

In one year, the six U.S. states with the highest household income growth all experienced an increase of over 10%. Among these states, Arkansas and West Virginia, both of which have historically been among the lowest-paid, saw significant annual increases.

On the flip side, 11 states saw their incomes fall in 2023.

In 2023, Maryland had the largest decrease in median household income at 9%, and it was the only state to experience a five-figure decline. Despite having one of the highest median household incomes in the country at $102,000, the state's income decreased by $10,500 from 2022.

Over 2,000 high-earning households have left Maryland between 2021 and 2022, according to SmartAsset. The state's economy has been stagnant since 2017, as reported by the state's comptroller in 2023.

In 2024, Maryland dropped nine positions from the previous year to rank No. 31 in CNBC's annual list of best states for business. This decline was mainly due to the state's deteriorating infrastructure and less business-friendly environment.

North Dakota had the second-worst decline in household median incomes, with a 6% decrease.

Here's where incomes fell the most.

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