Per Capita Income
Definition
Total personal income divided by total population. It represents the average income earned per person, including everyone (children, retirees, unemployed), not just workers.
Why It Matters
Per capita income is used to compare economic output between states and countries. It helps businesses assess market purchasing power and is used by the federal government to allocate certain grants.
How It's Measured
Calculated by dividing aggregate personal income by total population. Includes wages, investment income, government transfers, and business income.
Related Ranking
View ranking →Related Terms
Frequently Asked Questions
Total personal income divided by total population. It represents the average income earned per person, including everyone (children, retirees, unemployed), not just workers.
Per capita income is used to compare economic output between states and countries. It helps businesses assess market purchasing power and is used by the federal government to allocate certain grants.
Calculated by dividing aggregate personal income by total population. Includes wages, investment income, government transfers, and business income.
this entity is one of the U.S. population demographics concepts that recurs across this site. The definition above is the technical answer; the paragraphs below add the practical context for how the concept connects to the the U.S. Census Bureau ACS and decennial files data behind every per-entity page on the site.
In the the U.S. Census Bureau ACS and decennial files data, this concept shapes one or more of the fields that drive the per-entity grades and rankings on this site. The methodology page describes which fields feed into which output; this glossary entry documents the underlying term.
Source: U.S. Census Bureau ACS, 2026.