(NEXSTAR) — The definition of “rich” varies from person to person. For some, it’s owning a home, for others, it’s earning a significant amount of money, and for many today, it’s finding eggs under $4 per dozen. But when it comes to defining wealth by numbers, there is a more straightforward approach.
According to data from the Social Security Administration, GOBankingRates recently calculated that in order to be in the top 1% of earners in the United States, you need to earn at least $794,129 per year. This works out to around $66,180 a month. By comparison, the U.S. Census Bureau’s 2023 data found that the average household income in the country was $80,610.
While this threshold may seem high, GOBankingRates noted that it’s a 3.3% decrease from the previous year, suggesting that the top 1% of earners haven’t experienced the same wage growth as the other 99%.
Top 1% of Earners: A State-by-State Breakdown
Reaching the top 1% of earners in the U.S. isn’t the same across all states. For example, Connecticut requires the highest income, with residents needing to earn nearly $1.2 million annually to join the top 1%. In contrast, in West Virginia, you would need a much lower income of around $435,300 to be in the state’s wealthiest 1% — the lowest in the nation.
Other states with low-income thresholds for the top 1% include Mississippi, where the threshold is $456,300, and New Mexico, where it’s $493,000. On the flip side, Connecticut is one of four states with an income requirement above $1 million, along with Massachusetts ($1,153,000), California ($1,072,300), and Washington ($1,025,000). New Jersey also has a threshold of over $1 million at $1,010,100.
Income Thresholds for the Top 10%
If reaching the top 1% seems out of reach, the top 10% might be a more achievable goal. Nationally, the threshold to enter the top 10% of earners is $148,812. Compared to 2023, these numbers have shifted slightly. For example, while Connecticut continues to lead with the highest threshold of $955,300, Massachusetts follows closely behind with $896,900. Other states such as New Jersey ($825,965), New York ($817,796), and California ($805,519) also have high income thresholds to join the top 10%.
Meanwhile, West Virginia still holds the lowest threshold, with $374,700 qualifying you to be in the state’s top 1% of earners, according to a 2023 SmartAsset survey.
National Wealth vs. State Wealth
For a broader perspective, the U.S. Census Bureau’s 2022 data shows that the median household wealth in the country was $176,500, with one in ten households having a net worth exceeding $1.6 million. This highlights how, while the top 1% income thresholds may seem daunting, the national wealth distribution remains far from equal.
What Does This Mean for You?
As tax brackets and income requirements shift in 2024 and 2025, understanding these thresholds can help you gauge your financial progress. While achieving the top 1% may feel distant, knowing how your income compares to national and state standards can help you set clearer financial goals for the future.
Interactive Tools for Your State’s Income Data
To see if you’re earning enough to be part of the top 1% in your state, GOBankingRates provides an interactive table. This table lets you compare the income thresholds for the wealthiest earners across the U.S. to help you assess your position relative to others.
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