(NewsNation) — It takes about $800,000 to be in the top 1% of earners in the U.S., but you could be a one-percenter in your state making less.
West Virginia has the lowest threshold to be a 1% earner at $420,453, according to a 2024 study by personal finance website SmartAsset. On the other hand, it takes $1.21 million to be among the top 1% in Washington, D.C.
Meanwhile, to be in the top 5% of American earners, you’ll need to earn at least $290,185 a year, SmartAsset found.
To put that in perspective, the most recent data from the U.S. Census Bureau found the median household income in 2023 was $80,610 a year.
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How much do you have to make to be in the top 1%?
The SmartAsset study found it takes $787,712 to be in the top 1% of earners. That report was based on 2021 IRS tax return data for individual filers and then adjusted to June 2024 dollars.
A separate analysis of Social Security wage data by the Economic Policy Institute found the top 1% of earners in 2023 had an average annual wage of $794,129.
That works out to more than $66,000 a month, or about $15,200 per week, to be in the top 1% of earners in the U.S.
For the ultra-wealthy, the top 0.1%, average earnings were more than $2.8 million in 2023, according to the Economic Policy Institute.
That number has surged 350% since 1979, while the average annual wage for the bottom 90% has grown about 44% over the same period.
Does the top 1% vary from state to state?
You’ll need to make about $800,000 to be in the top 1% of earners nationally, but you could earn considerably less and reach that status in your state.
West Virginia has the lowest threshold to be a 1% earner: $420,453 annually, according to SmartAsset.
Mississippi ranks second, where residents have to make $440,744 to be in the top 1% of earners. New Mexico has the third lowest threshold at $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 in places like Washington, D.C. ($1.21 million), Connecticut ($1.15 million) and Massachusetts ($1.11 million) have to make more than the national average to be one-percenters in their region.
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In California, it takes more than $1.03 million to be in the top 1% of earners. Over 177,000 tax returns in The Golden State hit that threshold in 2021.
SmartAsset ranked states based on the minimum pre-tax income needed to be considered a top 1% earner.
States with the highest income threshold to be in the top 1% of earners, according to SmartAsset:
Connecticut ($1,152,254)
Massachusetts ($1,113,662)
California ($1,035,673)
Washington ($989,649)
New Jersey ($975,645)
Here’s how much you need to earn in each state to crack the top 1%:
How many Americans are in the top 1% of earners?
Only 1.49 million Americans, a small fraction of taxpayers, reported enough income to crack the top 1% in 2021, according to SmartAsset.
California, the most populous state, had the most taxpayers (177,645) in the top 1% nationally, followed by Texas (126,128) and Florida (101,940).
Wyoming, the least populous state in the country, 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%?
In 2023, the top 5% of earners had an average annual wage of $352,773, according to the Economic Policy Institute.
SmartAsset’s analysis found the top 5% income threshold was a bit lower, at $290,185 annually. That’s just over the typical salary for high-earning professions like doctors and pilots.
Again, the top 5% varies widely depending on where you live.
Washington, D.C., residents need to make $424,592 to be among the top 5% of earners. Massachusetts leads all states, with earners having to make $393,160 a year to be in the top 5%, according to SmartAsset.
On the other hand, Mississippi and West Virginia residents are in the top 5% if they make roughly $193,000 a year.
What about the wealthiest 1%?
Income and net worth are both ways to measure financial security, but they are not the same.
Income is the money you bring in over a certain period, like your salary, dividends from investments or interest from a savings account. Net worth, meanwhile, is a measure of wealth and is the value of all assets minus any outstanding debt.
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The minimum net worth of the top 1% of U.S. households is roughly $13.7 million as of 2023, according to an analysis of Federal Reserve data by DQYDJ, a personal finance site. To join the top 0.1%, you’ll need a net worth of nearly $62 million.
Altogether, the wealthiest 1% of American households held a record $49.2 trillion in the third quarter of 2024, according to the Federal Reserve. That’s more than 30% of the total wealth held by all U.S. households.
To put that in perspective: The wealthiest 1% can afford to buy nearly every home in America, according to a recent Redfin analysis.
The superwealthy, top 0.1%, control about 14% of all the wealth held by American households, up from 9% in 1990, Fed data shows.
