Study: This is what you need to earn to be in the top 1% in every state

Samantha Jarpe and Jeremy Tanner

2 minutes ago

DENVER (KDVR) – Are you in the top 1%? Well, that depends a lot on which state you live in, according to a new survey from GoBankingRates.

The study used 2021 and 2022 Internal Revenue Service data to determine the top 1% threshold for all states. The amounts were adjusted for inflation.

Five states — Connecticut, Massachusetts, California, Washington and New Jersey — all require people to earn $1 million or more to be in the 1%.

The 10 highest-income states had to be in the top 1% of income earners:

1. Connecticut – $1,192,947
2. Massachusetts – $1,152,992
3. California – $1,072,248
4. Washington – $1,024,599
5. New Jersey – $1,010,101
6. New York – $999,747
7. Colorado – $896,273
8. Florida – $882,302
9. Wyoming – $872,896
10. New Hampshire – $839,742

West Virginia had the lowest income needed to be in the 1%, at $435,302 a year. That’s less than half the amount needed in all but nine of the top 10 states.

The 10 States with the Lowest Thresholds for the 1% Club:

GoBankingRates used the most recent IRS tax return data (2021 data, sourced from 2022 returns) in calculating each state’s figures. More information is available in the study.

How does the 1% compare to the rest?

According to the U.S. Census Bureau, the median household income in 2022 was $74,580. However, recent data shows that this number fluctuates dramatically, with states on both ends of the spectrum showing up.

For a single-earner family, the median income is $51,554 in Mississippi, compared to $85,933 in the District of Columbia.