How much do you need to earn to be in the top 1% in your state? 2025 Study
Nearly 1.5 million households across the United States now rank among the top 1% of earners, according to the latest tax return data from the Internal Revenue Service (IRS). On average, it takes $731,492 in annual income to be a part of this group. But that threshold looks different depending on where you live. Economic conditions, tax policies, and cost of living vary significantly from state to state, resulting in wide disparities between what it takes to become a top 1% earner across the nation.
SmartAsset ranked U.S. states based on the income it takes to be a part of the top 1% in 2025 dollars based on the latest tax return data from the IRS.
Key Findings
Connecticut is the only state where it takes more than $1 million to be a top 1% earner. Retaining its top ranking with the highest income threshold nationwide, Connecticut residents must earn at least $1,056,996 annually to be in the top 1%. Just over 16,900 tax returns in the state were filed at this income level or above.
The income needed to be in the top 1% of earners decreased in all but three states. North Dakota ($695,759); Florida ($859,381); and Oklahoma ($544,679) were the only states where the minimum income needed to join the top 1% of earners increased year over year. North Dakota saw the most significant shift, a $11,634 jump, which propelled it from 24th to 15th in the national rankings.
California has the largest population of top 1% earners, and some of the highest incomes. A total of 175,045 tax returns qualify as the top 1% in California, each reporting a minimum annual income of $905,396. To be in the top 5% of earners in California, a household must earn $353,073 or more.
In four states, the threshold for reaching the top 1% is less than $500k. West Virginia has the lowest income threshold at $416,310, which 7,316 households reported earning at or above. Mississippi ($439,479); New Mexico ($451,639); and Kentucky ($496,281) follow.
SmartAsset
10 States With the Highest Income Needed to Be in the Top 1%
Connecticut
Income floor for top 1% of earners: $1,056,996
Number of top 1% returns: 16,917
Income floor for top 5% of earners: $362,263
Number of top 5% returns: 84,585
Massachusetts
Income floor for top 1% of earners: $965,170
Number of top 1% returns: 32,795
Income floor for top 5% of earners: $378,434
Number of top 5% returns: 163,973
California
Income floor for top 1% of earners: $905,396
Number of top 1% returns: 175,045
Income floor for top 5% of earners: $353,073
Number of top 5% returns: 875,225
New Jersey
Income floor for top 1% of earners: $901,082
Number of top 1% returns: 43,042
Income floor for top 5% of earners: $367,108
Number of top 5% returns: 215,209
New York
Income floor for top 1% of earners: $891,640
Number of top 1% returns: 91,840
Income floor for top 5% of earners: $307,753
Number of top 5% returns: 459,201
Florida
Income floor for top 1% of earners: $859,381
Number of top 1% returns: 105,101
Income floor for top 5% of earners: $281,811
Number of top 5% returns: 525,503
Washington
Income floor for top 1% of earners: $819,101
Number of top 1% returns: 35,597
Income floor for top 5% of earners: $355,767
Number of top 5% returns: 177,986
Colorado
Income floor for top 1% of earners: $772,989
Number of top 1% returns: 27,685
Income floor for top 5% of earners: $318,659
Number of top 5% returns: 138,423
Wyoming
Income floor for top 1% of earners: $771,369
Number of top 1% returns: 2,611
Income floor for top 5% of earners: $255,320
Number of top 5% returns: 13,057
Texas
Income floor for top 1% of earners: $743,955
Number of top 1% returns: 128,130
Income floor for top 5% of earners: $284,661
Number of top 5% returns: 640,648
10 States With the Lowest Income Needed to Be in the Top 1%
West Virginia
Income floor for top 1% of earners: $416,310
Number of top 1% returns: 7,316
Income floor for top 5% of earners: $196,335
Number of top 5% returns: 36,580
Mississippi
Income floor for top 1% of earners: $439,479
Number of top 1% returns: 11,731
Income floor for top 5% of earners: $195,171
Number of top 5% returns: 58,655
New Mexico
Income floor for top 1% of earners: $451,639
Number of top 1% returns: 9,310
Income floor for top 5% of earners: $211,101
Number of top 5% returns: 46,548
Kentucky
Income floor for top 1% of earners: $496,281
Number of top 1% returns: 18,395
Income floor for top 5% of earners: $215,196
Number of top 5% returns: 91,977
Arkansas
Income floor for top 1% of earners: $517,761
Number of top 1% returns: 12,198
Income floor for top 5% of earners: $217,087
Number of top 5% returns: 60,992
Indiana
Income floor for top 1% of earners: $531,332
Number of top 1% returns: 30,120
Income floor for top 5% of earners: $227,098
Number of top 5% returns: 150,598
Alabama
Income floor for top 1% of earners: $532,600
Number of top 1% returns: 20,185
Income floor for top 5% of earners: $226,634
Number of top 5% returns: 100,924
Oklahoma
Income floor for top 1% of earners: $544,679
Number of top 1% returns: 16,106
Income floor for top 5% of earners: $224,074
Number of top 5% returns: 80,530
Ohio
Income floor for top 1% of earners: $550,724
Number of top 1% returns: 53,103
Income floor for top 5% of earners: $232,196
Number of top 5% returns: 265,514
Maine
Income floor for top 1% of earners: $550,936
Number of top 1% returns: 6,618
Income floor for top 5% of earners: $236,338
Number of top 5% returns: 33,091
Data and Methodology
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. Figures were adjusted to May 2025 dollars using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) U.S. city average series for all items, not seasonally adjusted.
Reader Comments(0)