How much dough do you have to make to be considered the richest of the rich? Well, it really depends on where you live. And a new study has revealed exactly how much money will put you in the highest earners in all 50 states … and that may surprise you.
SmartAsset data analyzed to determine the minimum amount needed to qualify in the top one percent of earners in each state and there were some very interesting findings. It is not surprising that most of the states with the highest income thresholds were on the coast, while the inland states had a much lower barrier to entry to qualify to be a one-percent.
What can be even more interesting and informative is the data that shows how much it takes to be in the top five percent of earners in each state, as the gap narrows quite a bit. For example, the difference between the one percent in Connecticut (the top state at nearly $ 900,000) and West Virginia (the bottom state at $ 350,000) is large, but the difference for those who qualify as a five percent earner is much closer ($ 311,000 vs. $ 171,000). You can find the full map and the study here.
Five states with the highest income thresholds
- Connecticut (1 percent income threshold: $ 896,490 & 5 percent income threshold: $ 311,589)
- Massachusetts (1 percent income threshold: $ 810,256 and 5 percent income threshold: $ 314,389)
- New York (1 percent income threshold: $ 777,126 and 5 percent income threshold: $ 265,530)
- New Jersey (1 percent income threshold: $ 760,462 5 percent income threshold: $ 308,976)
- California (1 percent income threshold: $ 745,314 & 5 percent income threshold: $ 291,277)
Five states with the lowest income thresholds
- West Virginia (1 percent income threshold: $ 350,212 and 5 percent income threshold: $ 171,135)
- Mississippi (1 percent income threshold: $ 361,462 & 5 percent income threshold: $ 168,705)
- New Mexico (1 percent income threshold: $ 384,427 & 5 percent income threshold: $ 185,641)
- Arkansas (1 percent income threshold: $ 411,633 and 5 percent income threshold: $ 183,945)
- Kentucky (1 percent income threshold: $ 412,863 & 5 percent income threshold: $ 184,217)
The study also highlights the evolving definition of the middle class in the United States, as more than two-thirds of Americans consider themselves middle-class even if only half actually fall into the middle-class income group. For families with double incomes, they may have left the middle class and entered the elite without even realizing it.
