The 3 Worst States for Millionaires

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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.

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.

Mississippi

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Millionaire households: 45,771

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)

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

Total households: 763,797

Concentration of millionaires: 4.20%

Median income for all households: $42,644

Median home value: $107,400

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.

The Worst Things About Being a Millionaire

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.

A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about markets and macroeconomics.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.