SAN FRANCISCO (KRON) — California is home to some of the most expensive cities to live, but it’s not the state where the 1 percent income threshold is the highest.
An analysis by SmartAsset found how much U.S. residents need to earn to be considered among the top 1 percent of earners in each state. Data from the Internal Revenue Service as well as the Bureau of Labor Statistics informed how to rank each state from highest income required to lowest.
California comes in at number five.
“Anadjusted gross income (AGI)of $745,314 will get you in the 1 percent in California, while you’ll need to earn $291,277 to be in the top 5 percent of income earners. The top 1 percent account for 41.55% of total Golden State income taxes,” SmartAsset said.
The average annual income needed to be in the top 1 percent nationwide is$597,815, according to the analysis.
Here are the states that beat out California:
- Connecticut: Need to earn $896,490.
- Massachusetts: Need to earn $810,256.
- New York: Need to earn $777,126.
- New Jersey: Need to earn $760,462.
Honorable mention: The District of Columbia has the highest amount needed at $918,000, SmartAsset reports.
West Virginia has the lowest income threshold to be among the top 1 percent of earners at $350,212.
