You have to earn more than $1 million annually to be among the top 1% of earners in the richest U.S. states and Washington, D.C., a new GOBankingRates study reveals.
In D.C., you're in the top 1% if you make $1,250,029 or more — the highest threshold in the U.S. That's followed by five states where you also need to come in over the $1 million mark to be a top earner: Connecticut, Massachusetts, California, Washington and New Jersey.
The 1% thresholds are based on individual tax return data processed by the Internal Revenue Service in 2022, which has been adjusted by GOBankingRates to reflect 2024 dollar values. Here's a look at where the 1% earn the most, based on that metric:
- Washington, D.C.: $1,250,029
- Connecticut: $1,192,947
- Massachusetts: $1,152,992
- California: $1,072,248
- Washington: $1,024,599
- New Jersey: $1,010,101
- New York: $999,747
- Colorado: $896,273
- Florida: $882,302
- Wyoming $872,896
One reason that Washington, D.C. has a higher threshold compared with states like California and New York is that it has a smaller population with a larger concentration of high-income earners. Many of the highest paid D.C. professionals are in the government sector, which includes senior officials, lobbyists and lawyers.
Connecticut also has a smaller population compared with most states. The state's largest industry is financial services, and it is home to wealthy hedge funds and investment firms that tend to pay high salaries.
Massachusetts ranks third, largely due to an array of lucrative industries with high-paying specialized jobs, including financial services, education, technology and health care.
In contrast, West Virginia has the lowest income threshold for the top 1% of earners, starting at $435,302. Nationwide, the 1% income threshold is a median of $707,296.
Below are the thresholds for each state, in alphabetical order:
- Alabama: $577,017
- Alaska: $642,707
- Arizona: $713,264
- Arkansas: $550,469
- California: $1,072,248
- Colorado: $896,273
- Connecticut: $1,192,947
- Delaware: $640,330
- Florida: $882,302
- Georgia: $725,284
- Hawaii: $631,383
- Idaho: $728,859
- Illinois: $811,004
- Indiana: $572,403
- Iowa: $591,921
- Kansas: $674,225
- Kentucky: $532,013
- Louisiana: $608,143
- Maine: $609,173
- Maryland: $767,688
- Massachusetts: $1,152,992
- Michigan: $625,158
- Minnesota: $755,880
- Mississippi: $456,309
- Missouri: $610,837
- Montana: $741,182
- Nebraska: $651,641
- Nevada: $804,627
- New Hampshire: $839,742
- New Jersey: $1,010,101
- New Mexico: $493,013
- New York: $999,747
- North Carolina: $688,506
- North Dakota: $708,284
- Ohio: $601,685
- Oklahoma: $559,981
- Oregon: $707,296
- Pennsylvania: $720,778
- Rhode Island: $673,902
- South Carolina: $632,805
- South Dakota: $752,849
- Tennessee: $702,934
- Texas: $789,003
- Utah: $811,929
- Vermont: $645,255
- Virginia: $787,471
- Washington: $1,024,599
- Washington, D.C.: $1,250,029
- West Virginia: $435,302
- Wisconsin: $631,993
- Wyoming: $872,896
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