Only a small fraction of Americans reach the top 1% income bracket, a group that earns more than 99% of their fellow citizens.
The income required to join this elite group varies significantly depending on the state. Nationally, an annual household income of $652,657 is needed to be a top 1% earner,
which is more than eight times the median household income of around $74,580. This guide breaks down the income thresholds state by state, starting with the lowest.
1. West Virginia: $367,582
“Almost Heaven” for Top Earners: The Mountain State’s 1% Threshold
West Virginia has the lowest threshold to be in the top 1%, requiring an annual income of $367,582.
While salaries in West Virginia are below the national average, achieving this income still represents a significant accomplishment. The effective tax rate for the top 1% in West Virginia is 23.26%.
2. Mississippi: $381,919
Magnolia Dreams: Joining Mississippi’s Elite Earners
In Mississippi, an annual income of $381,919 is needed to be a top 1% earner. Mississippi’s effective tax rate for the top 1% is 23.04%.
This lower threshold reflects the state’s overall economic landscape, where incomes are generally lower compared to the national average.
3. New Mexico: $411,395
Land of Enchantment, Realm of High Earners
To be a top 1% earner in New Mexico, households must earn $411,395 annually. New Mexico, also known as the “Land of Enchantment”, has an effective tax rate of 23.35% for its top 1%.
This threshold, while higher than West Virginia and Mississippi, still remains relatively accessible compared to wealthier states.
4. Kentucky: $445,294
Bluegrass State, Greenback Dreams: Kentucky’s 1% Club
In Kentucky, households must earn a minimum of $445,294 per year to be considered among the top 1%. The effective tax rate for this income bracket in Kentucky is 24.14%.
Achieving this level of income places Kentuckians in an elite group within the state’s economic landscape.
5. Arkansas: $450,700
The Natural State’s Elite: Hitting the 1% Mark in Arkansas
Arkansas households earning $450,700 or more annually are part of the top 1%. The top 1% in Arkansas pay an average effective tax rate of 21.11%.
This lower tax rate, combined with a relatively lower income threshold, makes Arkansas an interesting case for high earners.
6. Louisiana: $458,269
Pelican State Perks: Joining Louisiana’s 1%
An income of $458,269 is required to be a top 1% earner in Louisiana. The effective tax rate for the top 1% in Louisiana is 24.8%. This threshold reflects the state’s economic conditions and income distribution.
7. Oklahoma: $460,172
Boomer Sooner for High Earners: Oklahoma’s 1% Club
In Oklahoma, households must earn $460,172 to be in the top 1%. The effective tax rate for the top 1% in Oklahoma is 23.68%. Achieving this income places individuals among the highest earners in the state.
8. Alabama: $470,341
Sweet Home, High Income: Alabama’s 1% Threshold
To be 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 level sets apart the highest earners in the state.
9. Indiana: $473,685
Hoosier Heights: Reaching Indiana’s 1% Income
Indiana households earning $473,685 or more annually are considered part of the top 1%. The top 1% in Indiana pay an average effective tax rate of 24.55%. This threshold demonstrates the level of income needed to be among the elite earners in the state.
10. Iowa: $483,985
Hawkeye High-Flyers: Iowa’s 1% Income
An income of $483,985 is needed to be a top 1% earner in Iowa. The effective tax rate for the top 1% in Iowa is 24.09%. This requirement reflects Iowa’s economic landscape and income distribution.
Alicia Richards