Research Summary. After extensive research by the Zippia data science team, we identified these details of business owner salary by state for the United States:
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Washington has the highest business owner salary at $120,339.
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Mississippi has the lowest business owner salary at $40,281.
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The national average salary for business owners is $50,934.
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The national hourly pay for business owners is $24.49.
You can read more about the specific methodology.
Background
Salary remains the top consideration for job seekers across various demographics, with many asking: how much do business owners earn in my area?
While numerous factors influence individual earnings, we present robust data on average salaries for business owners by state, segmented by seniority level. Although your city might differ from the state average, these figures provide a helpful benchmark for salary expectations.
The state with the highest salary for business owners after adjustment is still Washington.
Here’s a snapshot of the top ten states for business owner salaries:
Let’s explore how we arrived at these figures and provide a complete ranking of all the states.
Highest-Paid Business Owners By State
| Rank | State | Average Business Owner Salary | 10th Percentile | 90th Percentile |
|---|---|---|---|---|
| 1 | Washington | $120,339 | $80,000 | $179,000 |
| 2 | New Jersey | $110,331 | $71,000 | $169,000 |
| 3 | New York | $109,284 | $71,000 | $167,000 |
| 4 | California | $102,886 | $62,000 | $169,000 |
| 5 | Connecticut | $99,694 | $65,000 | $152,000 |
| 6 | Rhode Island | $97,770 | $64,000 | $148,000 |
| 7 | Colorado | $97,650 | $62,000 | $152,000 |
| 8 | Delaware | $96,002 | $60,000 | $151,000 |
| 9 | South Dakota | $94,551 | $64,000 | $138,000 |
| 10 | Pennsylvania | $92,646 | $59,000 | $144,000 |
| 11 | Oregon | $92,421 | $61,000 | $139,000 |
| 12 | Wisconsin | $91,688 | $60,000 | $138,000 |
| 13 | Minnesota | $88,999 | $61,000 | $129,000 |
| 14 | Maryland | $87,549 | $54,000 | $139,000 |
| 15 | Massachusetts | $86,852 | $57,000 | $131,000 |
| 16 | New Hampshire | $86,006 | $57,000 | $129,000 |
| 17 | Virginia | $83,950 | $50,000 | $139,000 |
| 18 | Michigan | $82,706 | $53,000 | $127,000 |
| 19 | Illinois | $82,107 | $52,000 | $127,000 |
| 20 | Nevada | $81,892 | $50,000 | $132,000 |
| 21 | Montana | $79,535 | $55,000 | $113,000 |
| 22 | Maine | $77,525 | $51,000 | $117,000 |
| 23 | Ohio | $77,448 | $48,000 | $124,000 |
| 24 | North Dakota | $75,903 | $54,000 | $106,000 |
| 25 | Alaska | $75,597 | $61,000 | $93,000 |
| 26 | Arizona | $74,532 | $43,000 | $127,000 |
| 27 | Wyoming | $74,104 | $49,000 | $110,000 |
| 28 | Idaho | $73,981 | $49,000 | $111,000 |
| 29 | Utah | $71,018 | $46,000 | $108,000 |
| 30 | Nebraska | $69,255 | $44,000 | $107,000 |
| 31 | Iowa | $68,210 | $44,000 | $105,000 |
| 32 | Indiana | $67,811 | $41,000 | $110,000 |
| 33 | Vermont | $67,008 | $44,000 | $101,000 |
| 34 | New Mexico | $66,190 | $38,000 | $112,000 |
| 35 | North Carolina | $61,219 | $35,000 | $106,000 |
| 36 | Missouri | $60,703 | $36,000 | $100,000 |
| 37 | Texas | $60,144 | $33,000 | $107,000 |
| 38 | Kansas | $59,837 | $36,000 | $97,000 |
| 39 | West Virginia | $58,739 | $35,000 | $97,000 |
| 40 | Oklahoma | $55,202 | $32,000 | $94,000 |
| 41 | Tennessee | $54,976 | $31,000 | $96,000 |
| 42 | Louisiana | $53,597 | $30,000 | $95,000 |
| 43 | Hawaii | $53,573 | $41,000 | $69,000 |
| 44 | Alabama | $53,328 | $30,000 | $94,000 |
| 45 | Georgia | $50,596 | $28,000 | $90,000 |
| 46 | Kentucky | $50,471 | $29,000 | $85,000 |
| 47 | South Carolina | $48,507 | $27,000 | $86,000 |
| 48 | Arkansas | $46,965 | $26,000 | $81,000 |
| 49 | Florida | $42,325 | $24,000 | $71,000 |
| 50 | Mississippi | $40,281 | $22,000 | $71,000 |
Methodology: Business Owner Salary By State
To better understand business owner pay by state, Zippia has aggregated data from various sources, including the BLS, FLC, and OPM, supplemented by actual salaries from job postings. The data science team then calculates a weighted average to determine the average pay for business owners by state.
We utilized the average annual salary data for business owners from these estimates and ranked every state based on this criterion, with the state offering the highest salary receiving the top rank.
Business Owner Salary By State FAQs
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What is the highest-paid state for business owners?
The highest-paid state for business owners is Washington with an average salary of $120,339 per year.
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What city pays business owners the most?
Seattle, WA pays business owners the most with an average salary of $121,623 per year.
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What is the worst state for business owners?
The worst state for business owners is Mississippi with an average salary of $40,281 per year.
Author
Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.
