You Need To Earn More In This State Than Any Other To Be In The Top 1%

Joining the 1% club is a monumental lifetime achievement that stands out from the rest, and is an aspiration of many. The reason for this is obvious, as being ultra wealthy allows people to live lavish, abundant, and care-free lifestyles. Their financial status permits them to be largely unburdened by the economic uncertainties plaguing the bottom 90% of earners in the country, thus taking the stress that comes with that predicament off the table.

For reference, as of January of 2023, the top 1% of earners in the United States hold almost as much wealth as the bottom 90% of earners combined. Just for scale, the average person's net worth in their 50's is around $1.8 million, but that still wouldn't even land you in the top 10% of high net worth individuals in the U.S. However, even amongst the 1% there are varying levels of wealth. What this means is that depending on where you live in the country, some groups of one-percenters may be more financially well off than others. For example, making it into the top 1% in a state like Arkansas is not as significant as making it into the top 1% of earners in a wealthier state like California. That being said, let's take a look at exactly how much money you need to be making on a yearly basis to obtain the status of the top 1% of earners in the wealthiest state in the country.

The amount of money required to be in the top 1% of earners in the U.S. varies pretty significantly depending on what state you reside in. For example, in order to qualify as a top 1% earner in West Virginia, you would have to make at least $367,582 annually. This makes West Virginia the state with the lowest threshold to enter the 1% in the entire country, followed by Mississippi ($381,919) and New Mexico ($411,315.)

On the other hand, in order to qualify for the top 1% of earners in states like California and New Jersey, you would have to make significantly more money than the previously mentioned states. For example, the 1% of top earners in California must reach a threshold of $844,266 annually, and in New Jersey it must be more than $817,346. However, while these numbers may seem significant, they still pale in comparison to the annual income required to be in the top 1% of two states in New England.

In order to qualify for the top 1% of earners in the state of Massachusetts, you would need to bring in over $903,401 annually to make the cut. However, the state of Connecticut still far surpasses this figure. The top 1% of earners in Connecticut need to make over $952,902 annually in order to join the club, a figure that is more than the annual salary of the top 1% of earners in West Virginia and Mississippi combined. However, at the same time, Connecticut also has the highest tax rate for 1% earners in the entire country, coming in at 28.4%.

That being said, if you are indeed blessed enough to be making over $950,000 a year, it might be in your best interest to reside in a state with friendlier tax rates to the ultra wealthy. Arkansas has the lowest tax rate in the country in this regard, coming in at 21.11% for the top 1% of earners, and is followed by South Dakota at 22.99%. Regardless, if you find yourself making over $950,000 annually, paying a higher tax rate to live in your state of preference probably won't be too great of a sacrifice to make. In any case, the ultra wealthy do have some pretty crafty ways to legally avoid paying taxes, so it may be plausible to believe they can figure some way around Connecticut's high tax burden.