For states looking to land on the positive end of this annual ranking, the lessons are simple: Offer healthy wages, manageable taxes, a low cost of living, and safe working environments. No extra points will be awarded for scenic beauty.
"The big picture is good--the job market is getting better these days, we’ve even seen wage growth start to tick up. But it kind of breaks down a little when you start to look state by state," said Richard Barrington, senior financial analyst for MoneyRates.com and author of the study.
"We tend to talk about the U.S. economy and the job market as if they’re all one thing, but it’s too big for that. There are sharp differences from one state to another."
To determine the best and worst states to make a living this year, personal finance site MoneyRates.com considered average wages, taxes, cost of living, unemployment rate, and incidents of workplace safety incidents (including illness, injuries, and deaths) for each state. The study drew on data from the Bureau of Labor Statistics, The Council for Community and Economic Research (C2ER), and D.C. think tank the Tax Foundation.
Washington state cedes its lead this year to Texas which moves out of second place to claim the title of the best state to make a living this year. Texans benefited from a lower than average cost of living that helped them maximize average wages only slightly above average. Very low numbers of workplace safety incidents coupled with no income tax puts the Lone Star State on top, while Washington moves to second place.
"Neither one really has anything to feel bad about," said Barrington. "If you live in either of those states, your prospects for making a good living are well above that national average."
In pictures: The 10 Best And Worst States To Make A Living In 2015
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Wyoming rounds out the top three. Of note, none of the top three states in this year's ranking have an income tax, which helps Wyoming in particular offset a slightly below average wage.
Illinois moves into the top 10 this year as the fifth best state to make a living. Barrington said a collection of positive factors outweighed the state's slightly elevated unemployment rate.
"The Achilles heel with Illinois is that the unemployment rate is still a little higher than the national average, but it makes up for that with a higher than average income for the typical worker, and its cost of living statewide is actually a little less than the average nationally."
Once again, Hawaii tops a particular scenic roundup of the worst states to make a living this year with a soaring cost of living and hefty income tax rate that can be difficult to abide on the state's average wages. According to the report, employees in Hawaii bring home about $0.55 of each dollar they earn.
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"If you want to live in Hawaii, you’re going to have to pay for it," said Barrington. "That’s literally true in the form of a very high cost of living. This makes sense--it’s an island, a lot of things have to be brought a long way to be available for sale in Hawaii. That’s going to ramp the cost of living up. In a lot of cases the typical income compensates for that, but that’s not really true in Hawaii."
Ultimately, Barrington cautions job seekers considering a move, or college kids receiving offers from companies in different states to consider how much these factors can influence one's income.
"One of the common things among the top three states is none of them have state taxes. That can be a 3-5% boost in your income in terms of what you’re able to take home."
Alternatively, for employees who are struggling to find work--or work that's compensated accordingly--he recommends entertaining an educated exploration of other job markets.
"If you’re in a market where wages aren’t commensurate with the cost of living or unemployment is stubbornly high, you might be able to do better somewhere else—as long as you look before you leap."
To view the full list of The 10 Best And Worst States To Make A Living In 2015, click here.
