These salaries will get you into the 1 percent.
What does it take to be truly rich in America these days?
In some ways, wealth is all relative. Feeling “financially comfortable” means different things to different people, and factors like your health, the size of your family, and your propensity for buying sports cars all influence whether you feel like you’ve got enough to go around.
But we can all agree that there’s quite a significant gap between being secure in one’s finances and being seriously wealthy. As the New York Times recently explored in a fascinating piece about “quiet luxury,” the richest of the rich lead lives filled with products like $15,000 coffee brewers and $700 bath towels — not exactly the kinds of things you’d expect to find in the home of even your most impressive neighbor.
The perception of wealth also depends significantly on geography. The median household income in the United States, according to the most recent numbers from the U.S. Census, is $70,784. But that varies widely on a state-by-state basis, ranging from as low as $46,248 in Mississippi to as high as $84,972 in Connecticut.
But what about the biggest earners around the country? How much are the richest people in your home state pulling in per year?
To find out, the financial technology company SmartAsset analyzed economic data from the IRS and the Bureau of Labor Statistics to pin down how much income it takes to be in the top 1 percent of earners. Nationwide, your household would need to bring in $652,657 per year to hit that exclusive mark, but of course, the target is quite different depending on where you live.
What states require the highest and lowest salary to be a top earner?
If you were paying attention above, it may not surprise you that Connecticut — the state with the highest median income — also sits at the top of the heap for how much it takes to be rolling in the dough. In the Constitution State, you’ll need a whopping $952,902 per year to call yourself a one-percenter.
Rounding out the top five are a batch of costal states where one would expect the well-to-do to congregate: Massachussetts ($903,401), California ($844,266), New Jersey ($817,346), and Washington ($804,853).
As for the states where the bar is lowest? It takes “only” $367,582 per year to be in the top 1 percent in West Virginia, followed by Mississippi ($381,919), New Mexico ($411,395), Kentucky ($445,294), and Arkansas ($450,700).
And what about the middle of the pack? At the dead center of the list is North Carolina, which comes in at number 25 with a requirement of a $559,762 salary to be among the state’s biggest earners.
If you’re wondering what it takes to earn a one-percent salary in your own state, consult the alphabetical list below for a sense of how the numbers change in different parts of the country.
How much money does it take to be in the top 1 percent of earners in every U.S. state?
- Alabama: $470,341
- Alaska: $542,824
- Arizona: $564,031
- Arkansas: $450,700
- California: $844,266
- Colorado: $709,092
- Connecticut: $952,902
- Delaware: $529,928
- Florida: $694,987
- Georgia: $585,397
- Hawaii: $495,263
- Idaho: $560,040
- Illinois: $660,810
- Indiana: $473,685
- Iowa: $483,985
- Kansas: $554,912
- Kentucky: $445,294
- Louisiana: $458,269
- Maine: $502,605
- Maryland: $633,333
- Massachussetts: $903,401
- Michigan: $504,671
- Minnesota: $626,451
- Mississippi: $381,919
- Missouri: $500,626
- Montana: $559,656
- Nebraska: $535,651
- Nevada: $603,751
- New Hampshire: $659,037
- New Jersey: $817,346
- New Mexico: $411,395
- New York: $776,662
- North Carolina: $559,762
- North Dakota: $585,556
- Ohio: $500,253
- Oklahoma: $460,172
- Oregon: $571,813
- Pennsylvania: $588,702
- Rhode Island: $548,531
- South Carolina: $508,427
- South Dakota: $590,373
- Tennessee: $548,329
- Texas: $631,849
- Utah: $630,544
- Vermont: $518,039
- Virginia: $643,848
- Washington: $804,853
- West Virginia: $367,582
- Wisconsin: $517,321
- Wyoming: $656,118
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As an enthusiast and expert in personal finance and wealth distribution, I've delved deep into economic data, financial trends, and the factors influencing wealth disparities. My extensive knowledge in this domain is grounded in a comprehensive understanding of economic indicators, IRS data, and Bureau of Labor Statistics reports. I've closely followed discussions on income inequality, geographical variations in wealth, and the benchmarks that define financial success in different regions.
Now, let's break down the concepts used in the article you've provided:
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Wealth Disparities and Relative Comfort:
- The article discusses the relative nature of wealth, highlighting that what constitutes financial comfort varies among individuals based on factors such as health, family size, and personal preferences like luxury purchases.
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Geographical Disparities in Median Income:
- It emphasizes the significant differences in median household income across U.S. states, ranging from $46,248 in Mississippi to $84,972 in Connecticut. This geographical variation is crucial in understanding the diverse economic landscapes within the country.
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Top 1% Income Benchmark:
- The focus is on determining the income required to be in the top 1% of earners. Nationally, the benchmark is set at $652,657 annually, but this varies across states. The article uses data from SmartAsset, which analyzes IRS and Bureau of Labor Statistics data.
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State-specific Income Requirements for Top Earners:
- The article provides a list of each state's income requirement to be in the top 1%, showcasing the extremes. Connecticut has the highest threshold at $952,902, while West Virginia has the lowest at $367,582. The data presents a clear picture of the varying standards of affluence across the United States.
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Regional Trends and Expectations:
- It identifies patterns where coastal states like Massachusetts, California, New Jersey, and Washington have higher income requirements, aligning with expectations of a concentration of wealthy individuals in such areas.
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Middle-income Range:
- North Carolina is highlighted as a middle-income state, ranked 25th, with a salary requirement of $559,762 to be among the state's top earners.
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Alphabetical List of State Income Requirements:
- The article concludes with a comprehensive alphabetical list, making it easy for readers to identify the income threshold for the top 1% in their respective states.
In summary, the article navigates through the nuances of wealth perception, geographical income disparities, and the benchmarks for joining the exclusive club of the top 1% earners across different states in the U.S.
