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In this day and age, we hear a lot about income equality, and people want to know where they stand on the economic ladder. If you’re curious about how the “other half” lives—or whether you’re already part of the 1%—start by looking at what income and net worth it takes to qualify for the top 1% in your state.
According to recent studies, to be in the top 1% of earners in the U.S., you need to bring in an annual salary of at least $597,815. This means that the other 99% of earners in the U.S. make less than this amount per year. When it comes to net worth, the top 1% of Americans have a minimum net worth of around $11.1 million.
Of course, these numbers vary by state and differ somewhat from study to study. For that reason, it’s necessary to understand income and net worth stats in your area to get the full picture.
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Income of the Top 1%
The earnings required to fall in the top 1% vary by state but generally amount to several hundred thousand dollars per year of household income. For example, in Alabama, the top 1% of earners make about $430,000 or more annually, while in Connecticut the figure is closer to $900,000.
To put these numbers in perspective, the median household income in the U.S. was just over $67,500 in 2020. The top 1% of earners, then, make almost nine times the median income in the U.S. The people who earn enough to meet this threshold work in a range of industries and include doctors, lawyers, business owners and executives—but this also varies regionally.
Top 1% Income by State
In surveying the economies of individual states, it’s clear that job opportunities vary widely, as do costs of living. So, it should come as no surprise that incomes similarly differ by region. The income required to be in the top 1% of household income varies by state, with many states in the northeast as well as California requiring the highest earnings to qualify.
Top 1% Net Worth
Income is one way to measure financial success, but it’s certainly not the only method. Another common metric is net worth, which is the total value of a household’s assets minus liabilities. Data shows that an American household needs to have a net worth of at least $10,374,030 to be in the top 1% of the U.S.
To put this in perspective, the median net worth in the U.S. was $121,760 in 2019, meaning that half of all Americans have a net worth of less than this amount. The top 1% of Americans, then, have a net worth that is more than 85 times the median net worth in the U.S.
Read more: Net Worth Calculator
As with income, however, the amount you need to have to be in the top 1% of net worth varies by state. In Connecticut, for example, you would need a net worth of at least $3,603,629 to be in the top 1%, while in Mississippi you would only need $766,205.
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Bottom Line
Whether you measure it by income or net worth, the top 1% is a select group. But it’s important to remember that the bar for entry varies depending on where you live. So, if you’re wondering if you’re in the top 1%, it’s best to compare yourself to others in your state or local area.
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FAQs
Top 1% by Net Worth
In order to be in the top 1% of household wealth in the U.S., you'd need to be worth at least $10,374,030.10, according to Forbes.
What counts as being in the top 1%? ›
How to Make the Top 1% List. To be in the top 1%, you must have an annual wage of at least $823,763, according to the Economic Policy Institute, That excludes sources of unearned income like investment returns.
How many people are in the top 1%? ›
Ultra high net worth individuals: population of global 1 percent 2021, by country. Over 22 million individuals residing in the United States belonged to the global top one percent of ultra high net worth individuals worldwide in 2021. China ranked second, with over five million top one percent wealth holders globally.
How much is top 1% of wealth? ›
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year.
What is considered top 2 percent? ›
More than 76 percent of Americans get to experience the joys of a six-figure household income for at least one year, just more than half will make $150,000 or more at some point, and about 20 percent hit the $250,000 mark at least once, which these days would put them within the top 2 percent of earners.
How much does the top 5% make? ›
From the top 5% to the top 1%
Salaries start to jump significantly the closer you get to the top 1%. You'll start to see dramatic shifts in the top 5%, where the EPI found the average earners significantly increased to $343,000 in 2020, up from $324,000 the year before.
What income is upper middle class? ›
Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range.
How much assets do you need to be in the top 1? ›
People with the top 1% of net worth (opens in new tab) in the U.S. in 2022 had $10,815,000 in net worth. The top 2% had a net worth of $2,472,000. The top 5% had $1,030,000. The top 10% had $854,900.
How much is 1% of people? ›
With a world population at approximately 7.8 billion, one percent would be about 78 million.
What is 1% of everyone in the world? ›
The current world population (as of March of 2022) is estimated at 7.9 billion. Therefore, 1% of the world population would be about 79 million people.
An annual income of $1 million or more was the most popular answer, with 22% of respondents saying they need to rake in seven figures to feel rich.
Is top 1% or top 99% better? ›
* In any election, the 99% will always beat the 1%. * The 99% combined pay more taxes than the 1%.
What percentage of men make 6 figures? ›
And because of racial and gender wage gaps, women are less likely to reach the six-figure threshold compared with men. Just 11% of women make $100,000 or more on a national level, whereas 21% of men do.
How much does the average 27 year old make? ›
How much does the top 3% make? ›
This section's factual accuracy may be compromised due to out-of-date information.
| Data | Top third | Top 3% |
|---|
| Household income |
|---|
| Lower threshold (annual gross income) | $65,000 | $200,000 |
| Exact percentage of households | 34.72% | 2.67% |
| Personal income (age 25+) |
2 more rowsHere's a look at the top-earning OnlyFans creators in 2021, according to Statista:
- Blac Chyna, $20 million/month.
- Bella Thorne, $11 million/month.
- Cardi B, $9.34 million/month.
- Tyga, $7.69 million/month.
- Mia Khalifa, $6.42 million/month.
Breaking Down Economic Class by Income
From that data, they split earners into different classes such as poor, lower-middle class, middle class, upper-middle class and wealthy.
What jobs are considered upper class? ›
They include such occupations as lawyer, physician, dentist, engineer, professor, architect, civil service executive, and civilian contractor. Many members of the upper-middle class have graduate degrees, such as law, business, or medical degrees, which are often required for professional occupations.
What is poor class income? ›
“Lower-income” adults have household incomes less than $52,000 and “upper-income” adults have household incomes greater than $156,000. The income it takes to be middle income varies by household size, with smaller households requiring less to support the same lifestyle as larger households.
What household income is considered wealthy? ›
Does Half A Million Dollars Feel Rich? With a $500,000+ income, you are considered rich, wherever you live! According to the IRS, any household who makes over $500,000 a year in 2022 is considered a top 1% income earner.
Approximately 33.6% of Americans make over $100,000 per year. 15.3% of that number are those who make between $100,000-$150,000, and only 0.1% make over a million per year. What percentage of Americans live below the poverty line?
What is considered a good salary in the US? ›
According to the US Bureau of Labor Statistics (BLS), the median annual wage across all occupations in 2021 was $58,260 [1]. For a person living in Phoenix, Arizona, where the median wage is $56,610, earning above the national average may be considered very good.
What yearly salary is considered upper class? ›
Based on Pew's analysis, a household of three needs an income of $156,600 to meet the definition of upper class, which amounts to more than double the national median.
What is considered wealthy at each age? ›
The average net worth by age for Americans is $76,300 for those under age 35, $436,200 for those ages 35 to 44, $833,200 for those ages 45 to 54, $1,175,900 for those ages 55 to 64, $1,133,700 for those ages 65 to 74 and $977,600 for those age 75 and above.
What net worth is considered upper class? ›
Households with a net worth of $1 million or more may be classified as members of the upper class, depending on the definition of class used.
