To understand the income required to join the top 1% in the United States, it’s helpful to note that the national average annual household income for a top 1% earner is $652,657.
This figure is more than eight times the median U.S. household income of approximately $74,580. The specific income threshold varies significantly by state.
SmartAsset utilized data from the Internal Revenue Service (IRS) and the Bureau of Labor Statistics to compile these figures.
Below is the annual income needed to be classified as a top 1% earner in each U.S. state, along with the effective tax rate for this income bracket:
1. West Virginia:
West Virginia has the lowest threshold to join the top 1% club, requiring an annual income of $367,582. Achieving this income isn’t easy as salaries are below the national average.
For the top 1% earners in West Virginia, the effective tax rate is 23.26%, highlighting the financial landscape for elite earners in the state.
2. Mississippi:
To be a top 1% earner in Mississippi, households need to make $381,919 annually. The Magnolia State’s financial landscape for its elite earners includes an effective top 1% tax rate of 23.04%.
This income threshold provides insight into the earnings required to be among the wealthiest residents in Mississippi.
3. New Mexico:
In New Mexico, households must earn $411,395 to be classified as a top 1% earner. The Land of Enchantment’s top 1% effective tax rate stands at 23.35%.
This figure illustrates the financial bar for entry into the state’s highest income bracket, offering perspective on economic disparity.
4. Kentucky:
To become a top 1% earner in Kentucky, households need to earn a minimum of $445,294 per year. The effective top 1% tax rate in the state is 24.14%.
This income benchmark demonstrates the earnings required to be among the financial elite in Kentucky, providing a clear economic target.
5. Arkansas:
Arkansas households earning $450,700 or more annually qualify for the 1% club. The top 1% in Arkansas pays an average effective tax rate of 21.11%.
This threshold provides a clear understanding of the income required to be part of the state’s wealthiest residents, along with their tax contribution.
6. Louisiana:
It takes $458,269 to be a top 1% earner in Louisiana. The Pelican State’s effective tax rate for the top 1% is 24.8%.
This income threshold defines the financial requirement for entry into Louisiana’s elite income bracket, offering a snapshot of economic status and tax obligations.
7. Oklahoma:
Households in Oklahoma must earn $460,172 to be a top 1% earner. The Sooner State has an effective top 1% tax rate of 23.68%.
This income figure marks the financial benchmark for Oklahoma’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
8. Alabama:
To become a top 1% earner in Alabama, households must earn a minimum of $470,341 per year. The effective tax rate for the top 1% in Alabama is 23.82%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
9. Indiana:
Indiana households earning $473,685 or more annually join the 1% club. The top 1% in Indiana pays an average effective tax rate of 24.55%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
10. Iowa:
It takes $483,985 to be a top 1% earner in Iowa. The Hawkeye State’s effective tax rate for the top 1% is 24.09%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Iowa, providing context for the state’s economic landscape.
11. Hawaii:
Households in Hawaii must earn $495,263 to be a top 1% earner. The Aloha State has an effective top 1% tax rate of 24.12%.
This income figure establishes the financial benchmark for Hawaii’s wealthiest, offering insight into the economic expectations for elite earners in this unique state.
12. Ohio:
To become a top 1% earner in Ohio, households must earn a minimum of $500,253 per year. The effective tax rate for the top 1% in Ohio is 25.09%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
13. Missouri:
Missouri households earning $500,626 or more annually qualify for the 1% club. The top 1% in Missouri pays an average effective tax rate of 24.93%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
14. Maine:
It takes $502,605 to be a top 1% earner in Maine. The Pine Tree State’s effective tax rate for the top 1% is 24.04%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Maine, providing context for the state’s economic landscape.
15. Michigan:
Households in Michigan must earn $504,671 to be a top 1% earner. The Wolverine State has a top 1% effective tax rate of 25.01%.
This income figure marks the financial benchmark for Michigan’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
16. South Carolina:
To become a top 1% earner in South Carolina, households must earn a minimum of $508,427 per year. The effective tax rate for the top 1% in South Carolina is 24.4%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
17. Wisconsin:
Wisconsin households earning $517,321 or more annually join the 1% club. The top 1% in Wisconsin pays an average effective tax rate of 24.9%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
18. Vermont:
It takes $518,039 to be a top 1% earner in Vermont. The Green Mountain State’s top 1% effective tax rate is 23.63%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Vermont, providing context for the state’s economic landscape.
19. Delaware:
Households in Delaware must earn $529,928 to be a top 1% earner. The First State has an effective top 1% tax rate of 25.37%.
This income figure marks the financial benchmark for Delaware’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
20. Nebraska:
To become a top 1% earner in Nebraska, households must earn a minimum of $535,651 per year. The effective tax rate for the top 1% in Nebraska is 24.1%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
21. Alaska:
Alaska households earning $542,824 or more annually join the 1% club. The top 1% in Alaska pays an average effective tax rate of 25.38%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
22. Tennessee:
It takes $548,329 to be a top 1% earner in Tennessee. The Volunteer State’s top 1% effective tax rate is 25.12%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Tennessee, providing context for the state’s economic landscape.
23. Rhode Island:
Households in Rhode Island must earn $548,531 to be a top 1% earner. The Ocean State has an effective tax rate of 25.26% for the top 1%.
This income figure marks the financial benchmark for Rhode Island’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
24. Kansas:
To become a top 1% earner in Kansas, households must earn a minimum of $554,912 per year. The effective tax rate for the top 1% in Kansas is 25.03%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
25. Montana:
Montana households earning $559,656 or more annually join the 1% club. The top 1% in Montana pays an average effective tax rate of 24.46%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
26. North Carolina:
It takes $559,762 to be a top 1% earner in North Carolina. The Tar Heel State’s effective top 1% tax rate is 25.31%.
This income threshold illustrates the financial requirement to enter the elite income bracket in North Carolina, providing context for the state’s economic landscape.
27. Idaho:
Households in Idaho must earn $560,040 to be a top 1% earner. The Gem State has an effective top 1% tax rate of 23.17%.
This income figure marks the financial benchmark for Idaho’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
28. Arizona:
To become a top 1% earner in Arizona, households must earn a minimum of $564,031 per year. The effective tax rate for the top 1% in Arizona is 25.22%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
29. Oregon:
Oregon households earning $571,813 or more annually join the 1% club. The top 1% in Oregon pays an average effective tax rate of 24.66%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
30. Georgia:
It takes $585,397 to be a top 1% earner in Georgia. The Peach State’s effective top 1% tax rate is 25.06%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Georgia, providing context for the state’s economic landscape.
31. North Dakota:
Households in North Dakota must earn $585,556 to be a top 1% earner. The Flickertail State has an effective tax rate of 24.76% for the top 1%.
This income figure marks the financial benchmark for North Dakota’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
32. Pennsylvania:
To become a top 1% earner in Pennsylvania, households must earn a minimum of $588,702 per year. The effective tax rate for the top 1% earners in Pennsylvania is 24.95%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
33. South Dakota:
South Dakota households earning $590,373 or more annually join the 1% club. The top 1% in South Dakota pays an average effective tax rate of 22.99%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
34. Nevada:
It takes $503,751 to be a top 1% earner in Nevada. The Silver State’s effective top 1% tax rate is 25.19%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Nevada, providing context for the state’s economic landscape and tax obligations.
35. Minnesota:
Households in Minnesota must earn $626,451 to be a top 1% earner. The North Star State has an effective tax rate of 25.53% for the top 1%.
This income figure marks the financial benchmark for Minnesota’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
36. Utah:
To become a top 1% earner in Utah, households must earn a minimum of $630,544 per year. The effective top 1% tax rate in Utah is 23.77%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
37. Texas:
Texas households earning $631,849 or more annually join the 1% club. The top 1% in Texas pays an average effective tax rate of 25.83%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
38. Maryland:
It takes $633,333 to be a top 1% earner in Maryland. The Free State’s effective tax rate is 25.94% for the top 1%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Maryland, providing context for the state’s economic landscape.
39. Virginia:
Households in Virginia must earn $643,848 to be a top 1% earner. The Old Dominion State has an effective tax rate of 26.11% for the top 1%.
This income figure marks the financial benchmark for Virginia’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
40. Wyoming:
To become a top 1% earner in Wyoming, households must earn a minimum of $656,118 per year. The top 1% effective tax rate in Wyoming is 24.79%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
41. New Hampshire:
New Hampshire households earning $659,037 or more annually join the 1% club. The top 1% in New Hampshire pays an average effective tax rate of 26.25%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
42. Illinois:
It takes $660,810 to be a top 1% earner in Illinois. The Prarie State’s effective tax rate is 26.35% for the top 1%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Illinois, providing context for the state’s economic landscape.
43. Florida:
Households in Florida must earn $694,987 to be a top 1% earner. The Sunshine State has an effective top 1% tax rate of 25.82%.
This income figure marks the financial benchmark for Florida’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
44. Colorado:
To become a top 1% earner in Colorado, households must earn a minimum of $709,092 per year. The effective tax rate for the top 1% in Colorado is 25.86%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
45. New York:
New York households earning $776,662 or more annually join the 1% club. The top 1% in New York pays an average effective tax rate of 28.29%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
46. Washington:
It takes $804,853 to be a top 1% earner in Washington. The Evergreen State’s effective tax rate is 25.99% for the top 1%.
This income threshold illustrates the financial requirement to enter the elite income bracket in Washington, providing context for the state’s economic landscape.
47. New Jersey:
Households in New Jersey must earn $817,346 to be a top 1% earner. The Garden State has an effective tax rate of 28.01% for the top 1%.
This income figure marks the financial benchmark for New Jersey’s wealthiest, providing insight into the economic landscape and tax structure for its elite.
48. California:
To become a top 1% earner in California, households must earn a minimum of $844,266 per year. The effective tax rate for the top 1% in California is 26.95%.
This income threshold indicates the financial level required to be among the highest earners in the state, along with their tax contribution.
49. Massachusetts:
Massachusetts households earning $903,401 or more annually join the 1% club. The top 1% in Massachusetts pays an average effective tax rate of 27.15%.
This financial benchmark highlights the income needed to be considered among the state’s wealthiest residents, along with their average tax burden.
50. Connecticut:
Connecticut has the highest barrier to entry to become a top 1% earner, requiring $952,902 annually.
Its effective tax rate of 28.4% for the top 1% is also the highest in the nation. This highlights Connecticut as the most challenging state for income and taxation for the financial elite.
Alicia Richards