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How much you need to earn to be in the top 1% in every U.S. state

July 18, 2023
in General
How much you need to earn to be in the top 1% in every U.S. state
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When it comes to being rich, location matters.

That’s because the amount of income you need to be in the top 1% of earners can vary by more than a half million dollars depending on which U.S. state you live in, according to a new analysis by personal finance website SmartAsset, which analyzed 2020 IRS data, adjusted to 2023 dollars. 

In Connecticut, households need to earn an annual income of $952,902 or more to be part of the top 1% of earners.

That’s nearly three times the amount needed to be in the top 1% of earners in West Virginia, where the threshold is $367,582.

Nationally, households making $652,657 or more are considered among the top 1% — nearly eight times the median household income, which is about $75,000, according to the study.

States with large urban hubs like California and New York tend to have higher-paid residents when compared with rural Southern and Midwestern states like Mississippi or Iowa, per SmartAsset’s analysis.

While residents in more urban states tend to earn more, they also generally have a higher cost of living, which somewhat offsets those larger incomes.

Below are the household incomes needed to be part of the top 1% in each state, ranked from the highest threshold to the lowest.

1. Connecticut

Top 1% income threshold: $952,902 

2. Massachusetts

Top 1% income threshold: $903,401 

3. California

Top 1% income threshold: $844,266 

4. New Jersey

Top 1% income threshold: $817,346 

5. Washington

Top 1% income threshold: $804,853 

6. New York

Top 1% income threshold: $776,662 

7. Colorado

Top 1% income threshold: $709,092 

8. Florida

Top 1% income threshold: $694,987 

9. Illinois

Top 1% income threshold: $660,810 

10. New Hampshire

Top 1% income threshold: $659,037 

11. Wyoming

Top 1% income threshold: $656,118 

12. Virginia

Top 1% income threshold: $643,848 

13. Maryland

Top 1% income threshold: $633,333 

14. Texas

Top 1% income threshold: $631,849 

15. Utah

Top 1% income threshold: $630,544 

16. Minnesota

Top 1% income threshold: $626,451 

17. Nevada

Top 1% income threshold: $603,751 

18. South Dakota

Top 1% income threshold: $590,373 

19. Pennsylvania

Top 1% income threshold: $588,702 

20. North Dakota

Top 1% income threshold: $585,556 

21. Georgia

Top 1% income threshold: $585,397 

22. Oregon

Top 1% income threshold: $571,813 

23. Arizona

Top 1% income threshold: $564,031 

24. Idaho

Top 1% income threshold: $560,040 

25. North Carolina

Top 1% income threshold: $559,762 

26. Montana

Top 1% income threshold: $559,656 

27. Kansas

Top 1% income threshold: $554,912 

28. Rhode Island

Top 1% income threshold: $548,531 

29. Tennessee

Top 1% income threshold: $548,329 

30. Alaska

Top 1% income threshold: $542,824 

31. Nebraska

Top 1% income threshold: $535,651 

32. Delaware

Top 1% income threshold: $529,928 

33. Vermont

Top 1% income threshold: $518,039 

34. Wisconsin

Top 1% income threshold: $517,321 

35. South Carolina

Top 1% income threshold: $508,427 

36. Michigan

Top 1% income threshold: $504,671 

37. Maine

Top 1% income threshold: $502,605 

38. Missouri

Top 1% income threshold: $500,626 

39. Ohio

Top 1% income threshold: $500,253 

40. Hawaii

Top 1% income threshold: $495,263 

41. Iowa

Top 1% income threshold: $483,985 

42. Indiana

Top 1% income threshold: $473,685 

43. Alabama

Top 1% income threshold: $470,341 

44. Oklahoma

Top 1% income threshold: $460,172 

45. Louisiana

Top 1% income threshold: $458,269 

46. Arkansas

Top 1% income threshold: $450,700 

47. Kentucky

Top 1% income threshold: $445,294 

48. New Mexico

Top 1% income threshold: $411,395 

49. Mississippi

Top 1% income threshold: $381,919 

50. West Virginia

Top 1% income threshold: $367,582

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