Definition
Per capita income, also known as income per person, is the mean income of the people in a region such as a state, county, or city. It is calculated by taking all sources of income in the aggregate and dividing it by the total population (every man,
woman, and child in a particular group including those living in group quarters).Numerator
Aggregate income.Denominator
Total population count (every man, woman, and child in a particular group including those living in group quarters).Why Is This Important?
It is commonly known that per capita income is correlated with the level of healthcare spending and is a major factor in a community's standard of living. Per capita income measures both the overall economic health of the community and the financial resources of each household. At a time of burgeoning health costs, people's ability to meet out-of-pocket medical or dental expenses is of increasing national interest.How Do We Compare With the U.S.?
Due to large household sizes in Utah, per capita income is slightly lower than the national average. The median household income in Utah is slightly higher than the national average.
