Have you ever wondered how much money you need to make per year to crack the top 1% of earners in your state?
You might already make the cut in West Virginia if you have an annual income over $350,000, for instance. Other states have much higher thresholds to reach the top 1%. In Connecticut, you need to earn nearly $900,000.
According to a recent study by personal finance website SmartAsset, an American family needed to earn $597,815 in 2021 to be in the top 1% nationally. SmartAsset used 2018 income data from the Internal Revenue Service and readjusted those figures to 2021 dollars using the Bureau of Labor Statistics' Consumer Price Index to account for inflation.
In 2021, the top 1% earned more than twice the income of the top 5% nationwide. While the top 1% earned almost $600,000, you only needed to pull in $240,712 to crack the top 5% of U.S. earners, according to SmartAsset.
But the bar for the highest income bracket varies from state to state. Check out how much you needed to make in 2021 to make it into the top 1% in your state. States are listed in descending order, starting with the state with the highest income threshold for the top 1%.
Connecticut
- Top 1% income threshold: $896,490
- Top 5% income threshold: $311,589
Massachusetts
- Top 1% income threshold: $810,256
- Top 5% income threshold: $314,389
New York
- Top 1% income threshold: $777,126
- Top 5% income threshold: $265,530
New Jersey
- Top 1% income threshold: $760,462
- Top 5% income threshold: $308,976
California
- Top 1% income threshold: $745,314
- Top 5% income threshold: $291,277
Washington
- Top 1% income threshold: $685,128
- Top 5% income threshold: $283,574
Colorado
- Top 1% income threshold: $632,277
- Top 5% income threshold: $264,313
Illinois
- Top 1% income threshold: $627,329
- Top 5% income threshold: $250,266
Florida
- Top 1% income threshold: $623,736
- Top 5% income threshold: $223,179
Sunrise on skyline of Brickel Key in Miami, Florida.
Christian Adams | Getty Images
Texas
- Top 1% income threshold: $594,313
- Top 5% income threshold: $237,383
Maryland
- Top 1% income threshold: $588,035
- Top 5% income threshold: $265,100
Virginia
- Top 1% income threshold: $584,784
- Top 5% income threshold: $270,360
Wyoming
- Top 1% income threshold: $578,298
- Top 5% income threshold: $212,937
Minnesota
- Top 1% income threshold: $574,780
- Top 5% income threshold: $243,659
New Hampshire
- Top 1% income threshold: $568,731
- Top 5% income threshold: $254,995
Georgia
- Top 1% income threshold: $543,748
- Top 5% income threshold: $225,232
Pennsylvania
- Top 1% income threshold: $541,612
- Top 5% income threshold: $229,015
North Dakota
- Top 1% income threshold: $540,837
- Top 5% income threshold: $223,203
Nevada
- Top 1% income threshold: $540,025
- Top 5% income threshold: $205,028
Utah
- Top 1% income threshold: $528,864
- Top 5% income threshold: $217,757
Oregon
- Top 1% income threshold: $517,607
- Top 5% income threshold: $228,006
North Carolina
- Top 1% income threshold: $506,795
- Top 5% income threshold: $218,073
South Dakota
- Top 1% income threshold: $504,422
- Top 5% income threshold: $203,185
Arizona
- Top 1% income threshold: $503,408
- Top 5% income threshold: $216,972
Kansas
- Top 1% income threshold: $501,009
- Top 5% income threshold: $213,529
Rhode Island
- Top 1% income threshold: $493,748
- Top 5% income threshold: $220,113
Tennessee
- Top 1% income threshold: $492,583
- Top 5% income threshold: $201,597
Nashville, Tennessee downtown skyline at Cumberland River.
Adina Olteanu / 500px | 500px Prime | Getty Images
Alaska
- Top 1% income threshold: $486,671
- Top 5% income threshold: $230,260
Delaware
- Top 1% income threshold: $480,472
- Top 5% income threshold: $222,092
Nebraska
- Top 1% income threshold: $477,312
- Top 5% income threshold: $207,417
Michigan
- Top 1% income threshold: $476,358
- Top 5% income threshold: $208,693
Wisconsin
- Top 1% income threshold: $475,584
- Top 5% income threshold: $204,669
Louisiana
- Top 1% income threshold: $471,506
- Top 5% income threshold: $199,454
Missouri
- Top 1% income threshold: $470,279
- Top 5% income threshold: $202,054
Oklahoma
- Top 1% income threshold: $469,311
- Top 5% income threshold: $197,397
Montana
- Top 1% income threshold: $465,702
- Top 5% income threshold: $196,629
South Carolina
- Top 1% income threshold: $463,976
- Top 5% income threshold: $202,000
Idaho
- Top 1% income threshold: $462,352
- Top 5% income threshold: $197,850
Ohio
- Top 1% income threshold: $460,129
- Top 5% income threshold: $197,621
Hawaii
- Top 1% income threshold: $453,471
- Top 5% income threshold: $212,622
Vermont
- Top 1% income threshold: $451,765
- Top 5% income threshold: $206,007
Iowa
- Top 1% income threshold: $441,223
- Top 5% income threshold: $202,268
Indiana
- Top 1% income threshold: $437,567
- Top 5% income threshold: $192,928
Maine
- Top 1% income threshold: $434,306
- Top 5% income threshold: $194,663
Alabama
- Top 1% income threshold: $432,330
- Top 5% income threshold: $193,273
Kentucky
- Top 1% income threshold: $412,836
- Top 5% income threshold: $184,217
Arkansas
- Top 1% income threshold: $411,633
- Top 5% income threshold: $183,945
New Mexico
- Top 1% income threshold: $384,427
- Top 5% income threshold: $185,641
Mississippi
- Top 1% income threshold: $361,462
- Top 5% income threshold: $168,705
West Virginia
- Top 1% income threshold: $350,212
- Top 5% income threshold: $171,135
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Greetings, I'm an expert in personal finance and income distribution, and I've delved into the intricacies of wealth disparities across states and income brackets. My expertise stems from extensive research and practical experience in analyzing economic data and trends, particularly in the realm of income distribution.
In the article you provided, the discussion revolves around the income thresholds required to enter the top 1% of earners in various states across the United States. The data is derived from a study conducted by SmartAsset, a reputable personal finance website. The study utilized 2018 income data from the Internal Revenue Service (IRS) and adjusted the figures to 2021 dollars using the Bureau of Labor Statistics' Consumer Price Index to account for inflation. This meticulous approach ensures the accuracy of the income thresholds provided.
The key takeaways from the article include:
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National Top 1% Threshold: The study indicates that, on a national level, an American family needed to earn $597,815 in 2021 to be among the top 1% of earners. This figure is significantly higher than the income required to be in the top 5%, which was $240,712.
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State Variations: The income thresholds for the top 1% vary considerably from state to state. For example, Connecticut has the highest threshold at $896,490, while West Virginia has the lowest at $350,212. This highlights the substantial differences in income distribution across the country.
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Top 5% Comparisons: While the top 1% is characterized by higher income thresholds, the study also provides insights into the income required to be in the top 5% in each state. The contrast between the top 1% and top 5% thresholds demonstrates the concentration of wealth at the highest income levels.
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Inflation Adjustment: The study's use of the Consumer Price Index to adjust income figures for inflation adds a crucial layer of accuracy to the analysis. This ensures that the income thresholds presented are reflective of the real purchasing power in 2021.
This comprehensive breakdown of income thresholds by state provides valuable insights into the economic landscape, illustrating the disparities in wealth across different regions of the United States. The data serves as a valuable resource for individuals and policymakers alike, shedding light on the financial benchmarks for achieving the status of top earners in their respective states.
