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Investor Psychology

The 3 Worst States for Millionaires

These states have the lowest concentrations of millionaire households in the U.S.

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Amassing a million dollars is a rare feat, no matter where you live. Just 5.8% of the entire U.S., or about 7.2 million households, qualify as bona fide millionaires -- meaning they have investable assets of $1 million or more, excluding real estate, employer-sponsored retirement plans and business partnerships.

See Also: 20 Small Towns With Big Millionaire Populations

But some states struggle to breed as many millionaires relative to the overall population as others. Based on the percentage of millionaires, the following three states have the lowest concentrations of wealthy households, according to estimates provided by Phoenix Marketing International, a firm that tracks the affluent market.

States with the Lowest Share of Millionaires

Mississippi

Millionaire households: 45,771

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Total households: 1,134,578

Concentration of millionaires: 4.03%

Median income for all households: $40,528 (U.S. median: $55,322)

Median home value: $105,700 (U.S. median: $184,700)

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Mississippi might have the lowest concentration of millionaire households per capita in the U.S., but it also has some of the lowest taxes. Indeed, it’s one of Kiplinger's 10 most tax-friendly states in the U.S., thanks to relatively light property and gas taxes.

Mississippi also has the lowest overall cost of living in the U.S. It’s almost 19% cheaper to live in the Magnolia State vs. the national average, according to the Council for Community and Economic Research. That means a million bucks goes further than it does elsewhere. Just have a look at Tupelo and Hattiesburg, which rank among the cheapest small towns in the U.S.

West Virginia

Millionaire households: 32,082

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Total households: 763,797

Concentration of millionaires: 4.20%

Median income for all households: $42,644

Median home value: $107,400

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West Virginia has a relatively low concentration of millionaires, but the Mountain State’s median real estate taxes are among the lowest in the U.S., according to the Tax Foundation. Sales taxes are reasonable, too.

Another plus for West Virginia residents: The cost of living is 9.9% lower than the national average, according to the Council for Community and Economic Research.

Arkansas

Millionaire households: 50,106

Total households: 1,178,438

Concentration of millionaires: 4.25%

Median income for all households: $42,336

Median home value: $114,700

Arkansas might not be bristling with millionaires, but it has some of the lowest living costs in the U.S., which are 15% below the national average. Heck, the Arkansas cities of Jonesboro and Conway are two of the cheapest places to live in the entire country.

When it comes to taxes, Arkansas is more of a mixed bag. Property taxes are low, but sales taxes are the second-highest in the country.

Wondering how the rest of the nation fared? Check out all 50 states ranked for millionaires.

See Also: The Worst Things About Being a Millionaire