How much income does it take to crack the top 1%? A lot depends on where you live.

Depending on where you live, being in the top 1% can mean very different things. 

In West Virginia, you can join the top 1% with pre-tax income of about $420,000. In California or Connecticut, by contrast, you’d need a seven-figure salary. 

Those figures come from a recent analysis by SmartAsset, the financial technology company. The report found a wide range of incomes to qualify for the top 1% in different states in 2024. 

The report is one of several to examine the upper reaches of American earnings in an era shaped by inflation and a pandemic. Median household income rose nearly 20% to $80,610 between 2020 and 2023, according to federal data. 

In separate analyses, both published this summer, SmartAsset and the personal finance site GOBankingRates ranked states according to the pre-tax income required to qualify for the top 1% in each one.

Capitalize on high interest rates: Best current CD rates

In these states, the top 1% are all millionaires

Here are the five wealthiest states, in terms of the minimum salary you would need to crack the top 1%. We’ll use SmartAsset’s numbers, which are fairly similar to the ones from GOBankingRates. 

• Connecticut: $1.15 million minimum income for the top 1% 
• Massachusetts: $1.11 million minimum income 
• California: $1.04 million 
• Washington State: $990,000 
• New Jersey: $976,000 

And here are the five states where the lowest income puts you in the top 1%: 

• West Virginia: $420,000 income floor for Top 1% 
• Mississippi: $441,000 minimum income 
• New Mexico: $476,000 
• Kentucky: $514,000 
• Arkansas: $532,000 

'What does it mean to be rich?'

Some of the states with the highest top incomes, including California and New York, host large numbers of Fortune 500 companies.

"There's either lifestyle or business opportunities in all of these places," said Jaclyn DeJohn, director of economic analysis at SmartAsset.

DeJohn noted, too, that three of the 10 states with the highest incomes do not levy income tax: Florida, Washington and Wyoming.

"On average, you're probably saving 6 or 7% of your income every year on that factor alone," she said.

Incomes and local costs of living may partly explain how Americans decide where to live. The five wealthiest states, in terms of top income, all lost population to other states in domestic migration between 2020 and 2023, Census figures show. Three of the lowest-income states, Arkansas, Kentucky and West Virginia, gained population from migration in those years. (New Mexico and Mississippi experienced small net losses.)  

“The question is, What does it mean to be rich?” said Elise Gould, a senior economist at the Economic Policy Institute, a left-leaning thinktank. “Does it mean you have more money than other people, or does it mean you have a higher standard of living? Is it a measure of how comfortable you can live, or is it a measure of how well you do relative to other people?” 

In the United States as a whole, you’d need to earn nearly $788,000 to be in the top 1% of earners, SmartAsset reports. To crack the top 5%, you’d have to take in at least $290,000. The figures are estimates, drawn from IRS data for individual filers in 2021 and adjusted to 2024 dollars. 

Wage equality is rising in America. Between 1979 and 2022, the wages of Americans in the top 1% of earners grew by 172%, after adjusting for inflation, according to the Economic Policy Institute. In the same years, the bottom 90% of earners saw their wages grow by a more modest 33%. 

“When you think about the very top, it’s about what’s happening with executive compensation,” and CEO pay in particular, Gould said.  

In 1965, CEOs were paid 21 times as much as a typical worker, on average, according to EPI research. In 2023, CEOs were paid 290 times as much.  

But lower-income Americans are also earning more money, especially in recent years. Lower-paid workers actually had relatively robust wage growth between 2019 and 2023, the EPI found, because of policy moves that aided them during the pandemic.  

Can't crack the top 1%? How about the top 10%?

If your income isn’t $400,000, let alone $1 million, you may still earn enough to qualify for the top 5% or 10%, either in your state or the nation as a whole. 

Here is how much household income you would need to qualify for the top U.S. income brackets in 2023, according to a new Motley Fool analysis:  

• Top 10%: $234,900 
• Top 20%: $165,300 
• Top 30%: $127,300 

More:In striking reversal, low-paid workers saw biggest wage growth during pandemic years

And here is the minimum income to be in the top 5% in some of the states listed above, according to SmartAsset. These figures are for individual income. 

High-income states: 

• Connecticut: $370,000 minimum income for top 5% 
• Massachusetts: $393,000 
• California: $365,000 
• Washington State: $377,000 
• New Jersey: $372,000 

Low-income states: 

• West Virginia: $193,000 minimum income for top 5% 
• Mississippi: $193,000 
• New Mexico: $215,000 
• Kentucky: $214,000 
• Arkansas: $217,000 

This article was updated to add a new video.