Americans have more money in their salaries than they did a few years ago. Just not the kind that made life easier.
According to a new analysis from MyPerfectResume, wages rose in every single state between 2020 and 2024, with the average U.S. worker seeing an 18% bump in nominal pay. One other thing happened: Inflation climbed about 21% over the same stretch. Once those raises were adjusted for inflation and regional cost differences, most workers were left with less real purchasing power than they started with.
Some states are feeling it more than others. Here are five states where paychecks grew on paper but shrank in reality — and ten where wage increases actually made a difference.
1. New Jersey (–7.0%)
New Jersey wins the title of the state where workers are likely the most frustrated with a 7.0% decline in real purchasing power.
The average wage rose from $73,974 in 2020 to $83,361 in 2024, a 12.7% increase that should have helped. But inflation and the state’s already high living costs left workers with earning more on paper but getting less out of it.
2. Rhode Island (–6.9%)
Rhode Island takes the runner-up spot for where salaries cannot buy peanuts. Workers in the state saw a 12.9% increase in their paychecks, from $60,508 in 2020 to $68,284 in 2024.
But inflation and basic living costs like housing, groceries and other essentials skyrocketed, so the state saw a 6.9% drop in real purchasing power.
3. Maryland (-5.4%)
In the middle ground sits Maryland, slipping a little further than New York and Massachusetts with a 5.4% drop in real purchasing power. Salaries in the “Old Line State” increased 14.7%, from $68,879 in 2020 to $78,992 in 2024.
But once you factor in inflation and the cost of living, Maryland workers have to stretch that higher salary just to get through the month.
4. New York (–5.3%)
Tying with Massachusetts, New York also saw real purchasing power drop 5.3%, proving that high salaries don’t automatically mean financial breathing room.
The average wage climbed from $83,122 in 2020 to $95,424 in 2024, a 14.8% increase which sounds great until you factor in inflation and the fact that New York was already an expensive place to exist.
5. Massachusetts (–5.3%)
Rounding out the bottom five, Massachusetts saw stronger salaries — but obviously not enough (not even close!) to outpace rising living costs.
Salaries went up from $83,738 in 2020 to $96,130 in 2024, which on paper looks strong. In practice, however, inflation was running around 21% during the same period, and Massachusetts was already one of the pricier states in the country before costs started climbing even faster. Once you adjust for inflation and the state’s already high cost of living, workers ended up with 5.3% less purchasing power than they had four years earlier — which is a polite way of saying the raise didn’t do squat.
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Top 10 States Where Paychecks Go the Farthest
It’s not all doom and disappearing dollars. While much of the country saw raises get eaten up by inflation, the following 10 states managed to hold the line — and in some cases, even come out ahead.
1. Idaho: +3.1%
Wages rose from $47,685 in 2020 to $59,576 in 2024, a 24.9% increase.
2. Florida: +2.6%
Wages increased from $55,868 to $69,494, marking a 24.4% jump.
3. Washington: +2.3%
Wages climbed from $76,741 to $95,160, a 24.0% increase.
4. Montana: +2.3%
Wages went from $48,443 to $60,037, up 23.9%.
5. Wyoming: +1.8%
Wages moved from $50,986 to $62,896, reflecting a 23.4% gain.
6. South Carolina: +1.5%
Wages increased from $49,554 to $60,988, a 23.1% rise.
7. North Carolina: +0.9%
Wages grew from $56,214 to $68,742, a 22.3% increase.
8. Tennessee: +0.9%
Wages rose from $55,137 to $67,448, also a 22.3% gain.
9. Maine: +0.5%
Wages increased from $51,952 to $63,269, up 21.8%.
10. Utah: 0.0%
Wages rose from $54,890 to $66,548, a 21.2% increase.
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