Poverty rate in the USA by state (1990-2024)

Poverty is the stigma of a society that cannot be eradicated even if all individuals work together to address its root causes. It is a complex issue that requires systematic change and long-term solutions to truly make a difference in the lives of those affected.

The poverty rate is calculated using the official poverty measure, which defines poverty by comparing the pre-tax annual income to a specific national threshold adjusted for family size.

According to the U.S. Census Bureau's September 2023 report on the poverty rate, the real face of poverty, however, is seen in rural areas of the country's South and Southwest, where living conditions are considerably worse and industry has never really taken off.

What is the total poverty rate in America?

Poverty is defined as when an individual is unable to obtain or provide a standard level of food, water, and/or shelter for themselves or their family. Not only in the US, it exists in every country and impacts millions of people worldwide.

The United States of America is considered the 6th richest country in the world. However, 37.9 million (11.5%) of its population still struggles with poverty, highlighting the stark income inequality present within the nation.

Source: Statista

According to the U.S. Census Bureau, 34 million people (10.5%) of the nation's population lived below the official poverty level in 2019. Then, in 2020, the poverty rate increased to 11.4%, which would be around 37.2 million people living in poverty. 

Furthermore, this percentage surged to 11.6% in 2021, which translates to 37.9 million people living in poverty in the United States. However, the percentage declined slightly to 11.5% in 2022–23. But the number of people living in poverty remained high, at around 37.9 million.

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The poverty rate in the USA by State

The southern US is mostly considered below the poverty line compared to the northern part due to various socio-economic factors such as the unequal distribution of resources and a lack of access to quality education and healthcare.

The top 10 US states with the highest poverty rates are as follows:

These areas have a long history of poverty, and many factors contribute to it, the most obvious being that they were primarily agricultural economies with little emphasis on education and innovation.

What Are the Causes of Poverty in the United States?

Poverty in the United States is a complex and multifaceted issue influenced by a variety of factors. Understanding these causes is crucial for addressing the root issues and finding effective solutions.

Economic Inequality

One of the primary causes of poverty in the United States is economic inequality. The gap between the rich and the poor has widened significantly over the years, leading to an uneven distribution of wealth and resources. High-income earners continue to accumulate wealth, while low-income individuals struggle to make ends meet. This growing disparity exacerbates poverty, as those at the lower end of the economic spectrum have limited access to opportunities that could help them improve their financial situation.

Lack of Access to Education

Education is a key factor in breaking the cycle of poverty, yet many Americans lack access to quality education. Those who do not receive adequate education often find themselves unable to secure well-paying jobs, leading to financial instability. Additionally, the rising cost of higher education and the burden of student debt can trap individuals in a cycle of poverty, making it difficult for them to achieve economic mobility.

Unemployment and Underemployment

Unemployment and underemployment are significant contributors to poverty in the United States. Many individuals who are able and willing to work cannot find jobs that pay a living wage. Even those who are employed may not have enough hours or may work in low-wage jobs that do not provide sufficient income to cover basic needs. This lack of stable employment leaves many Americans struggling to escape poverty.

Systemic Racism and Discrimination

Systemic racism and discrimination have long contributed to poverty in the United States. Minority groups, particularly African Americans and Hispanics, are more likely to face barriers to economic advancement due to discrimination in education, employment, housing, and access to credit. These systemic issues create significant obstacles for minority communities, leading to higher poverty rates and reduced opportunities for upward mobility.

Healthcare Access and Costs

The high cost of healthcare and limited access to affordable medical services are major factors driving poverty in the United States. Many low-income individuals and families cannot afford health insurance or the out-of-pocket expenses associated with medical care. As a result, they may forego necessary treatments, leading to worsening health conditions that can further impede their ability to work and earn a living, thus perpetuating the cycle of poverty.

Which states have the lowest poverty rates?

New Hampshire has the lowest poverty rate (6.9%). New Hampshire is well-known for its good quality of life and strong economy, and its citizens have several job options and resources. Similarly, there are other states with low poverty rates and a high standard of living for their citizens. These states are:

Also read: Largest State in the USA by Population