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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