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January 30, 2023 at 02:51 PM
Related: 15 Best States for Retirement: 2023
The 1% has entered common usage as an often negative epithet referring to the wealthiest folks.
But how much income does it take to be considered part of this elite group in 2023?
According to a new report from SmartAsset, the top 1% of U.S. households have an income of $645,600 — up from $597,815 a year ago. In stark contrast, the average American household earns a median income of less than $70,000.
SmartAsset’s analysis found wide variation between states in the income threshold for the 1%, ranging from about $375,000 to nearly $1 million.
A study released by SmartAsset last year also found that high earners, despite their relatively low numbers, have a significant effect on their states when they relocate to another one, as they make up an outsize share of states’ income tax base.
To determine the income needed to be in the top 1% of earners in each state, SmartAsset analyzed 2019 data from the Internal Revenue Service for single, married or head-of-household filers. Researchers adjusted figures to 2022 dollars using the Consumer Price Index for Urban Wage Earners and Clerical Workers from the Bureau of Labor Statistics.
See the gallery to how much income it takes to be among 15 states’ top earners, according to SmartAsset.
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