STATEN ISLAND, N.Y. – What does it take to be counted among the top 1% of earners nationwide? According to a recent study, an American family needs to earn an annual income of at least $650,000 to be put into that class — and that number could be greater, depending on where you live.
“Nationally, households that make $652,657 are considered among the top 1%. They earn more than eight times as much as the median household, which sits around $75,000,” noted a report from SmartAsset, a financial technology company that publishes articles and reviews to help people make decisions about personal finance.
“However, the 1% threshold varies from state to state, ranging from as much as $953,000 to as little as $368,000,” the report continued.
That’s why SmartAsset analyzed data from the IRS and Bureau of Labor Statistics to determine the minimum income required to be among the top 1% of earners in each state.
The study found that income thresholds vary greatly in America’s four largest states. It takes $844,266 and $776,662 to be in the top 1% in California and New York, respectively, but households in Florida and Texas need to earn much less – the top salaries in those states measure in at $694,987 and $631,849.
And while Northeastern states like Massachusetts and New Jersey have some of the highest income thresholds for the 1%, it takes considerably less income to be considered in the top 1% in many Southern states, the study noted. For example, residents in West Virginia need just $367,582 to reach the top 1% – the least amount of income across the study. In fact, six of the 10 states with the lowest income thresholds are located in the Southeast.
So where is the 1% income threshold the highest? Here’s a look at the top 10 states, according to SmartAsset’s research:
1. Connecticut
The Constitution State is one of two states where households must earn more than $900,000 per year to reach the top 1%. In 2023, ultra-wealthy households are earning $952,902…
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