Discover The Poorest State in the United States

Written by Kyle Glatz
Updated: September 16, 2023
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The United States is a large country with an estimated population of over 334,475,000. The various regions of the country are unique, with some places having a greater concentration of wealth than others. For example, the Mid-Atlantic region features 43 of the 100 counties with the highest income. Some states are not so fortunate. This brief look at the wealth of states will reveal the poorest state in the United States.

Discover the areas with the highest poverty rate in the country and learn what factors account for their lack of income.

The 10 Poorest States in the United States

Carribean sea

Puerto Rico has the highest poverty rate of any U.S. territory.

© wael alreweie/Shutterstock.com

Many methods exist for defining the poorest state in the United States. To some, the poorest state could be the one that contributes the least to the national gross domestic product (GDP). However, a better way to understand the poorest state is by looking at the poverty levels in a given area.

The federal poverty threshold is based upon a calculation of the number of people in a household and the amount of money that they earn. For example, recent guidelines say that a single-person household earning less than $14,580 per year is below the poverty line. As the household size increases, so does the amount required to meet the poverty guideline. If a family of four lives together with two parents and two children, and they earn less than $30,000 per year, then they’re below the poverty line.

Using the poverty rate as a measure for the poorest state humanizes the issue and opens the door for discussions about the region-specific causes of poverty. For this list, only the official 50 states are going to be considered. Also, the data for this table was sourced from the United States Census Bureau’s 2021 American Community Survey.

Other resources have placed the states in different orders, but they are all somewhat similar in terms of their top ten and placements.

10. Tennessee

The Tennessee State Flag With The American Flag

The flag of Tennessee.

©rarrarorro/Shutterstock.com

Percent of People Living in PovertyState’s Contribution to GDP
14.62%1.83%   

Tennessee is the tenth-poorest state in the United States. Roughly 14.62% of people in the state live below the poverty threshold according to federal guidelines. Based on the population of the state, that means 965,000 people in the state have a household income below the poverty threshold.  

9. South Carolina

South Carolina

South Carolina is just south enough to avoid brutal winters and far enough north to escape the sweltering summers.

©photo.ua/Shutterstock.com

Percent of People Living in PovertyState’s Contribution to GDP
14.68%1.18%   

South Carolina has a population of 5,118,425 people according to the last census. Since 14.68% of people in the state earn under the federal guidelines on poverty, that means over 700,000 people in the state are impoverished.  

8. Oklahoma

Oklahoma state flag

The Oklahoma state flag waving along with the national flag of the United States of America.

©rarrarorro/Shutterstock.com

Percent of People Living in PovertyState’s Contribution to GDP
15.27%0.90%   

The state of Oklahoma has the eighth-highest percentage of people living in poverty. That translates to about 585,000 people in the state falling below the federal poverty level. Many reasons exist for the state’s poverty including low-wage work, low levels of educational attainment, and high levels of incarceration.  

7. Alabama

flag of Alabama

American Flag and Alabama State Flag

©Mel Mansour/Shutterstock.com

Percent of People Living in PovertyState’s Contribution to GDP
15.98%1.08%   

Alabama’s poverty rate is 15.98%. With 4.7 million people living in the state, over 762,000 people in the state quality as falling below the poverty level. Inequitable taxes, poor upward mobility, and low levels of education perpetuate negative conditions.  

6. Arkansas

The flags of Arizona state and the United States waved in the wind.

©iStock.com/rarrarorro

Percent of People Living in PovertyState’s Contribution to GDP
16.08%0.63%   

Arkansas is another one of the poorest states in the United States based on the percentage of people living below the poverty line. That means over 470,000 people in the state fall under the federal guidelines for poverty. The lack of high-paying industries is certainly a major factor in why Arkansas is a poor state.  

5. Kentucky

Map of Kentucky and Flag of Kentucky

Map of Kentucky and Flag of Kentucky

©Creative Commons – License

Percent of People Living in PovertyState’s Contribution to GDP
16.61%1.03%   

Kentucky has the fifth-highest poverty rate in the United States. This state has 16.61% of its people living below the poverty line. Based on the state’s population, that means over 717,000 people in the state can be considered impoverished.

4. West Virginia

The West Virginia state flag waving along with the national flag of the United States of America. West Virginia is a state in the Southeastern region of the United States

©iStock.com/rarrarorro

Percent of People Living in PovertyState’s Contribution to GDP
17.10%0.38%   

West Virginia has a high percentage of people living in poverty. However, the state has a relatively small population. Even though 17.10% of the residents in the state live below the federal guidelines for poverty, that still comes out to 300,152 people.

3. New Mexico

Zuni Pueblo, New Mexico

Zuni Pueblo, New Mexico, United States

©iStock.com/Dietmar Rauscher

Percent of People Living in PovertyState’s Contribution to GDP
18.55%0.48%   

New Mexico is another one of the poorest states in the United States. Almost one-fifth of all people in the state live in poverty. Still, only 381,000 people fall below the federal guidelines due to the small overall population.

2. Louisiana

A 3D Louisiana flag rippling in the wind.

©iStock.com/Oleksii Liskonih

Percent of People Living in PovertyState’s Contribution to GDP
18.65%1.12%   

Louisiana is a state with a fairly high population of 4.5 million people. About 845,000 of them live in poverty, and that equals roughly 18.65 percent of the population. Low wages, high unemployment, taxes, and other factors continue to plague the state.

1. Mississippi

The flag of the US state of Mississippi waving in the wind with the American flag blurred in the background.

©iStock.com/rarrarorro

Percent of People Living in PovertyState’s Contribution to GDP
19.58%0.55%   

Mississippi is the poorest state in the United States. Roughly 19.58% of people in the state are living below the poverty line. That means about 564,000 people in the state earn below the federal guidelines for poverty. Like other poor states, a lack of good jobs, poor education, and other factors keep people in poverty.

While Mississippi has the highest poverty rate of any state in the U.S., two territories are also high on the list of impoverished areas. Puerto Rico has the highest poverty rate in any state or territory. Roughly 43.41% of people in the region live in poverty, and that accounts for 1.4 million people. Furthermore, Washington D.C. has a poverty rate of 15.45%, higher than the last three states on the list.

Where Is Mississippi Located on a Map?

The state of Mississippi, situated in the Southeastern United States, is bordered in the east by Alabama, in the north by Tennessee, to the west by Arkansas, and to the southwest by Louisiana. In the south, part of its border lies along the Gulf of Mexico, with the notable city of Biloxi. Jackson, Mississippi, the state capital, lies approximately 160 miles due north of New Orleans.

Conclusion

All in all, millions of people across the country live in poverty. An average of 13% of people in the country live below the poverty line, which equals 42 million people. The reasons that they live in poverty are many. Typically, poverty comes down to a lack of education, high unemployment and inflation, unaffordable homes, and a lack of good jobs in an area.

Until these problems are ameliorated, poverty will continue to exist in the United States.

The photo featured at the top of this post is © iStock.com/Sean Pavone


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About the Author

Kyle Glatz is a writer at A-Z-Animals where his primary focus is on geography and mammals. Kyle has been writing for researching and writing about animals and numerous other topics for 10 years, and he holds a Bachelor's Degree in English and Education from Rowan University. A resident of New Jersey, Kyle enjoys reading, writing, and playing video games.

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