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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As a financial analyst specializing in income distribution and economic trends, I possess comprehensive knowledge in assessing wealth gaps and income brackets across different geographical areas. My expertise lies in interpreting intricate financial data, utilizing statistical methodologies, and comprehending the nuances within economic reports and studies.
Regarding the article on income distribution across U.S. states, it delves into the income thresholds required to enter the top 1% and top 5% of earners in each state. The data comes from a study by SmartAsset, utilizing income information from the Internal Revenue Service (IRS) in 2018 and adjusting it to 2021 using the Consumer Price Index (CPI) from the Bureau of Labor Statistics (BLS) to account for inflation. This methodology helps in understanding the income levels needed for various income brackets across different states.
Here are the key concepts and elements covered in the article:
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Income Thresholds: The study highlights the income thresholds required to belong to the top 1% and top 5% of earners in each state, showcasing the significant disparity in these thresholds across different regions.
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Geographical Disparities: There's a stark contrast in income thresholds between states, with Connecticut having one of the highest thresholds at nearly $900,000 for the top 1%, while West Virginia has one of the lowest thresholds at around $350,000.
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National Average: On a national scale, the study suggests that, in 2021, an American family needed to earn approximately $597,815 to be part of the top 1% earners.
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Income Discrepancies: The study reveals a substantial income gap between the top 1% and the top 5% earners nationally, with the former earning over twice as much as the latter.
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Methodology: SmartAsset used IRS data from 2018 adjusted for inflation to 2021 using the CPI, demonstrating the utilization of reliable data sources and statistical adjustments to provide accurate insights into income distribution.
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Regional Variances: Income thresholds for various brackets differ significantly based on the state, showcasing the impact of local economies and cost of living on income stratification.
Understanding these concepts is crucial in comprehending income disparities and socioeconomic stratification across states, shedding light on the varying financial landscapes within the United States.
