15 States Where Poverty Is Worse Than You Might Think

According to the official poverty measure, 13.7% of the Texas population lives in households with incomes below the poverty line. After accounting for factors such as taxes, cost of living, medical costs, and other expenses included in the supplemental poverty measure (SPM), however, that percentage rises to 14.2% — the eighth highest SPM rate of any state.

One factor driving the higher SPM rate in Texas may be the burden of medical expenses incurred by the state’s large uninsured population. Uninsured Americans are often charged higher medical care rates than individuals with health insurance, and they have more difficulty paying their bills. In Texas, some 17.1% of residents do not have health insurance, the highest uninsured rate of any state.

Nevada is one of 15 states in which the poverty rate increases after accounting for taxes, medical costs, and other expenses, as well as anti-poverty subsidies such as SNAP, TANF, and unemployment insurance. After adjusting for these costs and subsidies, the poverty rate in Nevada rises from 12.2% — the 19th highest — to 13.5%, 14th highest.

One factor tied to the high rate of poverty in Nevada may be the low rate of homeownership in the state. Owning a home is one of the most effective ways for low-income families to build long-term wealth and avoid the cycle of poverty. In Nevada, just 56.8% of heads of households own their homes, the third lowest homeownership rate of any state.

After adjusting for taxes, medical costs, cost of living, and other expenses, the percentage of individuals living below the poverty line in Illinois rises from 10.9% to 12.3%.

A Census Bureau study analyzing the effect of various anti-poverty subsidies determined that Social Security had the greatest effect on keeping people above the federal poverty line, as measured by the supplemental poverty measure. In Illinois, just 29.5% of households receive Social Security income, the 10th smallest share of any state.

The typical home in Massachusetts is valued at $400,700, the third highest median home value of any state and $171,000 more than the U.S. figure. On average, goods and services cost 7.9 cents more on the dollar in Massachusetts than they do nationwide, the seventh highest cost of living of any state.

After adjusting for the high cost of living, as well as other expenses such as out-of-pocket medical costs and taxes and government aid programs and subsidies, the percentage of residents living in poverty in Massachusetts rises from 9.8% to 11.4% — an increase of 107,000 people.

After adjusting for expenses such as medical costs and taxes, as well as for anti-poverty subsidies like Social Security and SNAP, the poverty rate in Connecticut rises from 9.8% to 11.6% — an increase of 61,000 people.

Two factors driving the increase may be low benefits recipiency and high cost of living. While the federal Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program provides grant money to states for food, health care, and nutrition education, just 43.1% of eligible women and children in Connecticut receive WIC benefits, the sixth smallest share of any state. Additionally, goods and services cost 9.8% more in Connecticut than they do nationwide, the sixth highest cost of living of any state.

After adjusting for taxes, medical costs, cost of living, and other expenses included in the supplemental poverty measure, the percentage of individuals living below the poverty line in New Hampshire rises from 6.4% — the lowest in the country — to 8.2%, the sixth lowest.

The Census Bureau identified the Supplemental Nutrition Assistance Program (SNAP) as the third most impactful anti-poverty program after Social Security and refundable tax credits, as measured by the difference between the official poverty rate and supplemental poverty measure rate. In New Hampshire, just 75.0% of eligible individuals receive SNAP benefits, the 11th smallest share of any state. Also, the typical monthly benefit was just $101 per person in fiscal 2017, the smallest amount nationwide.

After adjusting for expenses such as medical costs and taxes, as well as for anti-poverty subsidies like Social Security and SNAP, the poverty rate in Colorado rises from 8.9% to 10.9% — an increase of 107,000 people.

One factor contributing to the increase may be low WIC recipiency. The federal Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program provides grant money to states for food, health care, and nutrition education for low-income women and children and has a significant impact on the share of individuals living below the poverty line. Just 41.0% of eligible women and children in Colorado receive WIC benefits, the fourth smallest share of any state.

After adjusting for medical expenses, work expenses, taxes, and other factors included in the supplemental poverty measure, the percentage of Virginia residents considered living below the poverty line rises from 10.7% to 12.8% — an increase of 177,000 people.

One factor accounting for the large spike may be the low SNAP recipiency rate in the state. An October 2019 Census Bureau study determined that SNAP had the third greatest effect of any federal anti-poverty subsidy on keeping individuals above the federal poverty line, as measured by the supplemental poverty measure. In Virginia, just 75.0% of eligible individuals receive SNAP benefits, the 11th smallest share of any state.

Under the official rate, 11.8% of New York residents are considered to be living below the poverty line, less than the 12.3% national poverty rate. After adjusting for medical costs, taxes, and other expenses, however, the percentage rises to 13.7% — more than the 13.1% national supplemental poverty measure rate.

High rents in New York City — where over 40% of the population of New York state lives — are likely one factor driving the high SPM rate. The typical home in New York state costs $325,500, the eighth highest median home value of any state. Overall, goods and services cost 15.8% more in the state than they do nationwide, the second highest cost of living in the country.

Under the official measure, 9.6% of Delaware residents are considered to be living below the poverty line, the 11th smallest share of any state. After adjusting for expenses such as medical costs and taxes, as well as anti-poverty subsidies like Social Security and SNAP, the percentage increases to 11.9% — the 23rd highest SPM rate of any state.

An October 2019 Census Bureau report analyzing the effects of various federal subsidies on poverty determined that unemployment insurance has a significant impact on the number of people considered to be living below the poverty line. In Delaware, however, the average weekly unemployment insurance benefit is just $266.76, approximately $100 less than the national average.

According to the official poverty measure, 13.6% of Florida residents live in households with income below the poverty threshold. After accounting for factors like taxes, cost of living, and other expenses included in the supplemental poverty measure, however, the percentage of residents living in poverty rises to 16.2% — the third highest SPM rate of any state.

One expense contributing to the high SPM rate in Florida may be the medical costs incurred by the state’s large uninsured population. Uninsured Americans are often subject to higher medical care rates than individuals with health insurance, and it is more difficult for them to pay their bills. In Florida, some 13.0% of residents do not have health insurance, the fourth highest uninsured rate of any state.

Under the official rate, 9.5% of Hawaii residents are considered to be living below the poverty line, less than the 12.3% national poverty rate. After adjusting for medical costs, taxes, and other expenses, however, the percentage rises to 13.7% — more than the 13.1% national supplemental poverty measure rate.

The SPM takes into account geographic variations in housing costs to better understand how many individuals are struggling financially in a given area. Hawaii has the most expensive housing in the country, with the typical home valued at $631,700 — nearly three times the U.S. median home value of $229,700. Goods and services cost 18.5% more in Hawaii than they do nationwide, the highest cost of living of any state.

After adjusting for medical costs, work expenses, taxes, and other factors included in the supplemental poverty measure, the percentage of New Jersey residents considered living below the poverty line rises from 9.1% — the sixth lowest poverty rate of any state — to 14.0%, the ninth highest supplemental poverty rate.

One factor accounting for the large spike may be the high cost of living in New Jersey. Goods and services cost 12.9% more in New Jersey than they do nationwide, the fourth highest markup of any state. Despite the high cost of living, the average SNAP benefit payout is just $114 per household member per month, the ninth lowest amount. Just 74.0% of eligible individuals receive SNAP, also the ninth smallest such figure.

The typical home in Maryland is worth $324,800, the ninth highest median home value of any state and nearly $100,000 more than the U.S. figure. On average, goods and services cost 9.4% more in Maryland than they do nationwide, the fifth highest cost of living of any state.

After adjusting for the high cost of living, as well as other expenses such as out-of-pocket medical costs and taxes, the share of residents living in poverty in Maryland increases from 7.2% — the second smallest share of any state — to 12.4%, the 21st largest share.

Under the official rate, 12.5% of California residents are considered to be living below the poverty line, roughly in line with the 12.3% national poverty rate. After adjusting for medical costs, taxes, and other expenses as well as government aid programs and subsidies, however, the percentage rises to 18.1% — the highest supplemental poverty measure rate of any state and the highest gap between the two measures.

A Census Bureau study analyzing the impact of various anti-poverty subsidies determined that Social Security and SNAP have the largest and third largest effect of any program on keeping individuals above the federal poverty line. In California, however, just 27.9% of eligible households receive Social Security benefits, the sixth smallest share of any state. Similarly, just 70.0% of eligible individuals receive SNAP benefits, also the sixth smallest share.