(NEXSTAR) – Becoming one of the top 1% earners in the US may seem like a long time. Given that less than 10% of her households in the US earn more than her $200,000, that’s pretty much true.Census Bureau data showBut new analysis suggests it may be easier to barge in on top earners than others.
After reviewing tax data available from the IRS and adjusting for the Department of Labor Consumer Price Index, smart asset We calculated the income required to be the highest earner in each state.
Overall, SmartAsset found income thresholds to range from roughly $375,000 to just over $955,000. States extending eastward along the Rust Belt from the south of the Plains to the Gulf region had relatively lower income thresholds for entering the top 1% than coastal states and states entering New England.
Connecticut has the highest threshold in the United States, at about $955,000. She was the only state with the lowest amount over $900,000, followed by Massachusetts at about $897,000.
States with the highest income thresholds are:
- Connecticut: $955,300
- Massachusetts: $896,900
- New Jersey: $825,965
- New York: $817,796
- California: $805,519
According to SmartAsset’s findings, the state with the lowest threshold is West Virginia, where you need to earn about $374,700 to be in the top 1%. West Virginia was followed by Mississippi at $383,100.
The states with the lowest income thresholds are:
- West Virginia: $374,712
- Mississippi: $383,128
- New Mexico: $418,970
- Arkansas: $446,276
- Kentucky: $447,300
If it seems difficult to land in the top 1% of residents in your state, SmartAsset also showed you the income needed to land in the top 5% of each state.
Connecticut has the highest top 1% threshold and the third highest top 5% threshold at about $337,000. Massachusetts is the highest at $349,700. At the bottom, Mississippi had the lowest threshold to enter the top 5% with her $181,100.
You can view the full findings here.
To put it in perspective, the average net worth (everything you own minus debt) in 2019 for an American household was $748,800. federal reserveBut a few very wealthy people push the average towards the top of the spectrum. The median net worth, which more accurately describes the typical American household, is much lower at $121,700.
federal data It shows that the average American household has an average income of about $70,000.
Alix Martichoux contributed to this report.
