It costs approximately $800,000 to be in the top 1% of earners in the United States, but you could be a one-percenter in your state earning less.
According to a 2024 study conducted by personal finance website SmartAsset, West Virginia has the lowest threshold for becoming a 1% earner at $420,453. On the other hand, it costs $1.21 million to be among the top 1% in Washington, D.C.
Meanwhile, according to SmartAsset, earning at least $290,185 per year puts you in the top 5% of American earners.
To put that in context, according to the most recent data from the United States Census Bureau, the median household income in 2023 was $80,610 per year.
How much do you have to make to be in the top 1%?
According to the SmartAsset study, earning $787,712 puts you in the top 1% of earners. That report was created using 2021 IRS tax return data for individual filers and then adjusted to June 2024 dollars.
The Economic Policy Institute conducted a separate analysis of Social Security wage data and discovered that the top 1% of earners in 2023 earned an average annual wage of $794,129.
That equates to more than $66,000 per month, or approximately $15,200 per week, to be in the top 1% of earners in the United States.
According to the Economic Policy Institute, the average earnings of the ultra-wealthy, or the top 0.1%, will exceed $2.8 million in 2023.
That figure has risen 350% since 1979, while the average annual wage for the bottom 90% has increased by 44% during the same time period.
Does the top 1% vary from state to state?
You’ll need to earn around $800,000 to be in the top 1% of earners nationally, but you could earn much less and still reach that level in your state.
According to SmartAsset, West Virginia has the lowest annual income threshold for a 1% earner: $420,453.
Mississippi ranks second, with residents needing to earn $440,744 to be among the top 1% of earners. New Mexico has the third lowest threshold, $476,196.
States with the lowest income threshold to be in the top 1% of earners, according to SmartAsset:
- West Virginia ($420,453)
- Mississippi ($440,744)
- New Mexico ($476,196)
- Kentucky ($513,865)
- Arkansas ($531,692)
On the other hand, residents of Washington, D.C. ($1.21 million), Connecticut ($1.15 million), and Massachusetts ($1.11 million) must earn more than the national average to be one-percenters in their region.
In California, it costs more than $1.03 million to be in the top 1% of earners. In 2021, more than 177,000 tax returns in California will have reached that threshold.
SmartAsset ranked states according to the minimum pre-tax income required to be considered a top 1% earner.
States with the highest income threshold to be in the top 1% of earners, according to Smart Asset:
- Connecticut ($1,152,254)
- Massachusetts ($1,113,662)
- California ($1,035,673)
- Washington ($989,649)
- New Jersey ($975,645)
How many Americans are in the top 1% of earners?
According to SmartAsset, only 1.49 million Americans, or a small fraction of taxpayers, reported enough income to be in the top 1% in 2021.
California, the most populous state, had the most top 1% taxpayers (177,645), followed by Texas (126,128) and Florida (101,940).
Wyoming, the nation’s least populous state, had the fewest taxpayers (2,616) in the top 1%, followed by Vermont (3,107) and Alaska (3,231).
How much do you need to make to be in the top 5%?
According to the Economic Policy Institute, the top 5% of earners earned an average of $352,773 per year in 2023.
SmartAsset’s analysis revealed that the top 5% income threshold was slightly lower, at $290,185 per year. That is just above the average salary for high-paying professions such as doctors and pilots.
Again, the top 5% varies greatly according to where you live.
To be in the top 5% of earners, Washington, D.C. residents must earn $424,592. Massachusetts leads all states, with earners needing to earn $393,160 per year to be in the top 5%, according to SmartAsset.
Mississippi and West Virginia residents, on the other hand, are in the top 5% of earners, with an annual income of approximately $193,000.
What about the wealthiest 1%?
Income and net worth are two ways to assess financial security, but they are not synonymous.
Income is the money you earn over a given time period, such as your salary, dividends from investments, or interest from a savings account. In contrast, net worth is a measure of wealth that equals the value of all assets minus any outstanding debt.
According to DQYDJ, a personal finance website, the top 1% of US households have a minimum net worth of approximately $13.7 million as of 2023, based on Federal Reserve data. To join the top 0.1%, you must have a net worth of nearly $62 million.
According to the Federal Reserve, the wealthiest 1% of American households had a record $49.2 trillion in assets in the third quarter of 2024. This accounts for more than 30% of all wealth held by US households.
To put that into perspective, a recent Redfin analysis found that the wealthiest 1% can afford to buy nearly every home in America.
According to Fed data, the super wealthy, or top 0.1%, control approximately 14% of all wealth held by American households, up from 9% in 1990.
