Some 1.5 million American households rank among the top 1% of earners, SmartAsset reported this week. The personal finance firm cited the latest tax return data from the Internal Revenue Service.
To be part of this elite group, it takes $731,492 on average. However, wide disparities exist across the country, depending on where households are located, SmartAsset said.
Economic conditions, tax policies and cost of living vary significantly from state to state, influencing what it takes to become a top 1%, ranging from more than $1 million to slightly more than $400,000.
To determine the income needed to be in the top 1% of earners in each state, SmartAsset analyzed 2022 data from the IRS for individual tax filers. Researchers adjusted figures to May 2025 dollars, using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers U.S. city average series for all items, not seasonally adjusted.
They determined that the income needed to be in the top 1% of earners decreased in all but three states: North Dakota, Florida and Oklahoma. In four states — Kentucky, Mississippi, New Mexico and West Virginia — the threshold for reaching the top 1% was less than $500,000.
See the accompanying gallery for the 12 states where earners need the most income in order to be in the top 1% and top 5%.
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