You have to earn more than $1 million annually to be among the top 1% of earners in the richest U.S. states and Washington, D.C., a new GOBankingRates study reveals.
In D.C., you're in the top 1% if you make $1,250,029 or more — the highest threshold in the U.S. That's followed by five states where you also need to come in over the $1 million mark to be a top earner: Connecticut, Massachusetts, California, Washington and New Jersey.
The 1% thresholds are based on individual tax return data processed by the Internal Revenue Service in 2022, which has been adjusted by GOBankingRates to reflect 2024 dollar values. Here's a look at where the 1% earn the most, based on that metric:
- Washington, D.C.: $1,250,029
- Connecticut: $1,192,947
- Massachusetts: $1,152,992
- California: $1,072,248
- Washington: $1,024,599
- New Jersey: $1,010,101
- New York: $999,747
- Colorado: $896,273
- Florida: $882,302
- Wyoming $872,896
One reason that Washington, D.C. has a higher threshold compared with states like California and New York is that it has a smaller population with a larger concentration of high-income earners. Many of the highest paid D.C. professionals are in the government sector, which includes senior officials, lobbyists and lawyers.
Connecticut also has a smaller population compared with most states. The state's largest industry is financial services, and it is home to wealthy hedge funds and investment firms that tend to pay high salaries.
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Massachusetts ranks third, largely due to an array of lucrative industries with high-paying specialized jobs, including financial services, education, technology and health care.
Money Report
In contrast, West Virginia has the lowest income threshold for the top 1% of earners, starting at $435,302. Nationwide, the 1% income threshold is a median of $707,296.
Below are the thresholds for each state, in alphabetical order:
- Alabama: $577,017
- Alaska: $642,707
- Arizona: $713,264
- Arkansas: $550,469
- California: $1,072,248
- Colorado: $896,273
- Connecticut: $1,192,947
- Delaware: $640,330
- Florida: $882,302
- Georgia: $725,284
- Hawaii: $631,383
- Idaho: $728,859
- Illinois: $811,004
- Indiana: $572,403
- Iowa: $591,921
- Kansas: $674,225
- Kentucky: $532,013
- Louisiana: $608,143
- Maine: $609,173
- Maryland: $767,688
- Massachusetts: $1,152,992
- Michigan: $625,158
- Minnesota: $755,880
- Mississippi: $456,309
- Missouri: $610,837
- Montana: $741,182
- Nebraska: $651,641
- Nevada: $804,627
- New Hampshire: $839,742
- New Jersey: $1,010,101
- New Mexico: $493,013
- New York: $999,747
- North Carolina: $688,506
- North Dakota: $708,284
- Ohio: $601,685
- Oklahoma: $559,981
- Oregon: $707,296
- Pennsylvania: $720,778
- Rhode Island: $673,902
- South Carolina: $632,805
- South Dakota: $752,849
- Tennessee: $702,934
- Texas: $789,003
- Utah: $811,929
- Vermont: $645,255
- Virginia: $787,471
- Washington: $1,024,599
- Washington, D.C.: $1,250,029
- West Virginia: $435,302
- Wisconsin: $631,993
- Wyoming: $872,896
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