UTAH (ABC 4) –Have you ever wondered how your income stacks up against your neighbors? New data analysis by Go Banking Rates shows how much you need to make to be considered rich in all 50 states.
The site used U.S. Census Bureau income data to determine the salary a household needs to earn to be in the state’s top 5% of earners – what they define as “rich.”
In Utah, you’ll need to earn $198,875 or more to be considered a “rich” person in the state of nearly 3.4 million residents.
The ultra-rich, or the top 5% of earners in Utah, make way more: $517,405 on average, according to the analysis.
In nearly every state Go Banking Rates studied, you’d need a six-figure salary to qualify as “rich.” In some of the priciest spots, you need to be bringing home much more. In San Francisco, for example, you’ll need to earn about $239,000 to be in that top tier.
Of the 50 states included, Mississippi was the one with the lowest threshold to enter the top 5%. Earning $154,076 or more would land you in the top fifth of the state’s earners.
Nationwide, the Census found the median household income was $67,521 in 2020. That’s a nearly 3% decline from the year before, the first statistically significant drop and perhaps not a big surprise given the pandemic and ensuing economic fallout.
The poverty rate also climbed in 2020 to 11.4%.
See the full list from Go Banking Rates here.
The analysis you're referring to delves into income thresholds across different states in the U.S. to ascertain what qualifies as being in the top 5% of earners, equating this bracket with being "rich." They utilized data from the U.S. Census Bureau to arrive at these figures, which is a foundational aspect contributing to the credibility of their findings. To be specific, they utilized income data to delineate the salary required for a household to fall within the top echelon of earners in each state.
In Utah, the study highlighted that to be considered "rich," one needs to earn $198,875 or more. This figure positions an individual or household within the top 5% of earners in a state with around 3.4 million residents. Moreover, the ultra-rich in Utah, defined as the top 5% of earners, boast an average income of $517,405, indicating a substantial disparity within this elite tier.
The article also emphasizes a trend observed across various states: the necessity of a six-figure salary to qualify as "rich." It underscores the considerable disparity in income requirements across regions, showcasing the varying cost of living and economic conditions. For instance, in San Francisco, the income threshold to be in the top 5% reaches about $239,000, reflecting the heightened cost of living in this metropolitan area.
Mississippi, on the other hand, presents the lowest threshold among the states analyzed, with an income of $154,076 or more landing an individual or household in the top fifth of earners in the state.
Furthermore, the article touches upon broader economic indicators such as the national median household income, which stood at $67,521 in 2020, marking a nearly 3% decline from the preceding year. This decline, the article suggests, could be attributed to the impacts of the pandemic and its subsequent economic repercussions. Additionally, the poverty rate saw an increase in 2020, reaching 11.4%, further illustrating the adverse effects of the pandemic on economic stability.
This comprehensive analysis by Go Banking Rates provides valuable insights into income distribution, economic disparities among states, and the evolving financial landscape, utilizing Census Bureau data to substantiate its findings.
