Cracking the Top 1%: How Income Requirements Vary by State

To be in the top 1% of earners in the United States, households need to bring in nearly $800,000 annually on a national scale. However, in some areas, earning half that amount could still grant entry into this exclusive group. A report by Axios highlights that location plays a critical role in determining income thresholds for the top 1%.

The highest income requirement to join the 1% is found in Washington, DC, where residents need an annual income of $1.22 million to reach the elite tier. Connecticut follows closely with a threshold of $1.17 million, while Massachusetts ranks third at $1.13 million. In contrast, West Virginia residents can enter the top 1% with a comparatively modest income of $426,000, making it the state with the lowest entry point. Other states with the lowest thresholds include Mississippi at $446,370 and New Mexico at $482,270.

Joel Berner, senior economist at Realtor.com®, noted that the income levels required to join the top 1% closely align with housing prices in each state. Berner explained that states like Washington, DC, Massachusetts, Washington, and California, which rank among the top six for the highest 1% thresholds, also feature some of the highest median listing prices for homes. Conversely, states like West Virginia, Arkansas, and Mississippi, with the lowest income requirements, are also among the bottom 10 in median home listing prices.

Berner further pointed out that locations with higher concentrations of wealth and higher-earning residents naturally attract more expensive housing developments. Axios gathered its data by analyzing adjusted gross income figures from 2021 tax filings and adjusting them to 2024 dollar values.

The disparity in income thresholds between states is driven by differences in local economic factors, including job opportunities and wealth concentration. These regional variances highlight the role of geography in determining who joins the nation’s wealthiest households.

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