Americans aiming to join the top 1% of earners nationally need an income approaching $800,000. However, the required earnings vary significantly by location, according to a report by Axios.
Washington, DC demands the highest income for entry into this elite group at $1.22 million annually. Connecticut and Massachusetts follow closely with thresholds of $1.17 million and $1.13 million respectively.
In contrast, West Virginia residents can enter the top 1% with an annual salary of $426,000. Mississippi and New Mexico also have lower thresholds at $446,370 and $482,270 respectively.
Realtor.com senior economist Joel Berner notes that “the breakdown of top 1% income by state is, unsurprisingly, quite similar to listing prices in those states.” He adds that regions like Washington, DC; Massachusetts; Washington; and California are among those with high median list prices due to higher earners residing there.
The data compiled by Axios was based on adjusted gross incomes reported on tax filings from the 2021 tax year and adjusted to reflect 2024 dollars. The disparities between states are attributed to local economic factors such as job opportunities and wealth concentration.
