Whether you dream of being in the top 1% or think you might already be there, one thing is certain: The income a household makes to be in the top 1% club varies by state.
National Average
The national annual household average to be in the top 1% is $652,657. That’s over eight times the medium household income in the U.S., which currently stands at around $75,000.
Determining Earnings by State
SmartAsset used data from the Internal Revenue Service (IRS) and Bureau of Labor Statistics to gather how much income one must make to be classified as a top 1% earner in their state. These are the results, ranked from the lowest to the highest threshold.
1: West Virginia
West Virginia has the lowest threshold to be in the top 1%, with an annual income of $367,582. Salaries in West Virginia are below the national average, so achieving this income isn’t as easy as it is in states towards the end of this list. The effective tax rate for 1% earners in West Virginia is 23.26%.
2: Mississippi
It takes $381,919 to be a top 1% earner in Mississippi. The Magnolia State’s effective top 1% tax rate is 23.04%.
3: New Mexico
$411,395 is what households must earn to be a top 1% earner in New Mexico. The Land of Enchantment has an effective tax rate of 23.35% for the top 1%.
4: Kentucky
To become a top 1% earner in Kentucky, households must earn a minimum of $445,294 per year. Of that, the effective top 1% tax rate is 24.14%.
5: Arkansas
Arkansas households earning $450,700 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 21.11%.
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%.
7: Oklahoma
$460,172 is what households must earn to be a top 1% earner in Oklahoma. The Sooner State has an effective top 1% tax rate of 23.68%.
8: Alabama
To become a top 1% earner in Alabama, households must earn a minimum of $470,341 per year. Of that, the effective tax rate is 23.82% for the top 1%.
9: Indiana
Indiana households earning $473,685 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.55%.
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%.
11: Hawaii
$495,263 is what households must earn to be a top 1% earner in Hawaii. The Aloha State has an effective top 1% tax rate of 24.12%.
12: Ohio
To become a top 1% earner in Ohio, households must earn a minimum of $500,253 per year. Of that, the effective tax rate is 25.09% for the top 1%.
13: Missouri
Missouri households earning $500,626 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.93%.
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%.
15: Michigan
$504,671 is what households must earn to be a top 1% earner in Michigan. The Wolverine State has a top 1% effective tax rate of 25.01%.
16: South Carolina
To become a top 1% earner in South Carolina, households must earn a minimum of $508,427 per year. Of that, the effective tax rate is 24.4% for the top 1%.
17: Wisconsin
Wisconsin households earning $517,321 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.9%.
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%.
19: Delaware
$529,928 is what households must earn to be a top 1% earner in Delaware. The First State has an effective top 1% tax rate of 25.37%.
20: Nebraska
To become a top 1% earner in Nebraska, households must earn a minimum of $535,651 per year. Of that, the effective tax rate for the top 1% is 24.1%.
21: Alaska
Alaska households earning $542,824 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 25.38%.
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%.
23: Rhode Island
$548,531 is what households must earn to be a top 1% earner in Rhode Island. The Ocean State has an effective tax rate of 25.26% for the top 1%.
24: Kansas
To become a top 1% earner in Kansas, households must earn a minimum of $554,912 per year. Of that, the effective tax rate for the top 1% is 25.03%.
25: Montana
Montana households earning $559,656 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.46%.
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%.
27: Idaho
$560,040 is what households must earn to be a top 1% earner in Idaho. The Gem State has an effective top 1% tax rate of 23.17%.
28: Arizona
To become a top 1% earner in Arizona, households must earn a minimum of $564,031 per year. Of that, the effective tax rate for the top 1% is 25.22%.
29: Oregon
Oregon households earning $571,813 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.66%.
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%.
31: North Dakota
$585,556 is what households must earn to be a top 1% earner in North Dakota. The Flickertail State has an effective tax rate of 24.76% for the top 1%.
32: Pennsylvania
To become a top 1% earner in Pennsylvania, households must earn a minimum of $588,702 per year. Of that, the effective tax rate for the top 1% earners is 24.95%.
33: South Dakota
South Dakota households earning $590,373 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 22.99%.
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%.
35: Minnesota
$626,451 is what households must earn to be a top 1% earner in Minnesota. The North Star State has an effective tax rate of 25.53% for the top 1%.
36: Utah
To become a top 1% earner in Utah, households must earn a minimum of $630,544 per year. Of that, the effective top 1% tax rate is 23.77%.
37: Texas
Texas households earning $631,849 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 25.83%.
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%.
39: Virginia
$643,848 is what households must earn to be a top 1% earner in Virginia. The Old Dominion State has an effective tax rate of 26.11% for the top 1%.
40: Wyoming
To become a top 1% earner in Wyoming, households must earn a minimum of $656,118 per year. Of that, the top 1% effective tax rate is 24.79%.
41: New Hampshire
New Hampshire households earning $659,037 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 26.25%.
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%.
43: Florida
$694,987 is what households must earn to be a top 1% earner in Florida. The Sunshine State has an effective top 1% tax rate of 25.82%.
44: Colorado
To become a top 1% earner in Colorado, households must earn a minimum of $709,092 per year. Of that, the effective tax rate for the top 1% is 25.86%.
45: New York
New York households earning $776,662 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 28.29%.
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%.
47: New Jersey
$817,346 is what households must earn to be a top 1% earner in New Jersey. The Garden State has an effective tax rate of 28.01% for the top 1%.
48: California
To become a top 1% earner in California, households must earn a minimum of $844,266 per year. Of that, the effective tax rate is 26.95% for the top 1%.
49: Massachusetts
Massachusetts households earning $903,401 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 27.15%.
50: Connecticut
Connecticut has the highest barrier to entry to become a top 1% earner at $952,902. Its effective tax rate of 28.4% for the top 1% is also the highest in the nation.
The Non-State
Washington D.C. isn’t a state. But if it were, its top 1% would be the highest earning in the nation. The average household income to be in the top 1% in Washington, D.C. is $1,013,698.
Low Income Thresholds
Southern states have the lowest income thresholds to be in the top 1%. Six of the ten states with the lowest top 1% income thresholds are in the Southeast.
Tax Findings
Generally speaking, the higher the income threshold to be in the top 1%, the higher the effective tax. Connecticut has both the highest top 1% threshold and the highest effective tax.
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