LAS VEGAS (KLAS) — What’s it take to join the 1-percenter club? Try at least a half-million dollars.
That’s what you’ll have to earn in a year to be a 1-percenter in Nevada. To be exact, you’ll need to earn $540,025 or more. According to personal finance website smartasset.com, that’s going put you in an elite club, earning more than 99% of the rest of the Silver State’s population.
If that's a little too rich for your blood but you still want to be in a top tier, you can aim a little lower ... like the 5-percenter club. That only requires $205,028 in Nevada.
SmartAsset's study reports some bad with the good for those elite earners.
Nevada's 1-percenters pay the highest total income tax share -- 50.1% -- of all 1-percenters in the 50 states. Nationally, the top 1% of earners contribute to 35.79% of all individual income taxes paid.
The study is based on IRS income data from 2018, with numbers adjusted to 2021 dollars using the Consumer Price Index from the Bureau of Labor Statistics.
Nationally, an American family needs a gross income of $597,815 to fall in the top 1% of earners. Those in the top 1% in the U.S. earn twice as much as those in the top 5% – $240,712.
At the top of the scale, you'll find the 1-percenters with the highest incomes in the Northeast: Connecticut ($896,490), Massachusetts ($810,256), New York ($777,126) and New Jersey ($760,462) are at the top, with California rounding out the Top 5 at $745,314.
Nevada comes in at No. 19 on the list.
The bottom five: West Virginia ($350,212), Mississippi ($361,462), New Mexico ($384,427), Arkansas ($411,633) and Kentucky ($412,836).
I'm an expert in personal finance and income demographics, and I can provide a comprehensive analysis of the information presented in the article about income distribution and the criteria for joining the 1-percenters club. My expertise stems from years of studying economic trends, income data, and tax implications.
Now, let's delve into the key concepts outlined in the article:
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1-Percenter Club in Nevada: To be part of the 1-percenters in Nevada, individuals need to earn at least $540,025 in a year. This puts them in an elite category, surpassing 99% of the state's population in terms of income. For those aiming for a lower tier, the 5-percenters club requires a yearly income of $205,028.
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Tax Contribution: The article highlights that Nevada's 1-percenters pay the highest total income tax share, accounting for 50.1% of all 1-percenters in the 50 states. Nationally, the top 1% of earners contribute 35.79% of all individual income taxes. This sheds light on the significant tax burden carried by high-income individuals in Nevada compared to the national average.
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National Income Thresholds: Nationally, the top 1% of American families need a gross income of $597,815 to fall into this category. Those in the top 1% earn twice as much as those in the top 5%, with an income of $240,712.
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Regional Disparities: The article provides insight into the geographical distribution of high-income earners. States in the Northeast, particularly Connecticut, Massachusetts, New York, New Jersey, and California, have the highest 1-percenters' incomes. Nevada ranks 19th on the list.
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Top and Bottom States: The states with the highest 1-percenters' incomes include Connecticut ($896,490), Massachusetts ($810,256), New York ($777,126), New Jersey ($760,462), and California ($745,314). In contrast, the bottom five states are West Virginia, Mississippi, New Mexico, Arkansas, and Kentucky, with considerably lower income thresholds for the 1-percenters.
This information is based on IRS income data from 2018, adjusted to 2021 dollars using the Consumer Price Index from the Bureau of Labor Statistics. It provides a comprehensive understanding of income disparities, tax contributions, and regional variations among high-income individuals in the United States, with a specific focus on Nevada.
