If You Earn This Much Income, You're In The Top 5% Of Americans

Simply put, "top 5% earners" refers to people who earn more than 95% of people. To be in this group in the U.S., you need to earn at least $352,773 a year, according to the latest figures from NASDAQ. This threshold adjusts every year to keep pace with changes in the economy, like wage increases and inflation. It's a big number, highlighting the great income differences that exist across the country.

Over the last 10 years, these income levels have bobbed up and down, shaped by new tech and changes in government policy. When the economy is doing well, and things are looking up, these income numbers generally go up too, thanks to better paychecks and more money in the high-flying sectors. But when times are tough, like during the 2008 financial crisis, they flatline because more people are out of work, and businesses aren't making as much money.

Being among the 5% of income earners in the United States is an important milestone. Beyond financial achievement, it indicates access to resources, opportunities, and influence. Individuals within the top 5% often have greater access to quality education, healthcare, and investment opportunities, further reinforcing their economic position. This elite group, while small, wields substantial influence over economic trends. Same with if you are in the Upper Class.

A few factors decide who makes it into the top 5%, with where you live and what industry you work in being key players. For example, in pricey places like New York City and San Francisco, you need a much fatter paycheck to enjoy the same comforts that you might get for less in more budget-friendly cities. Little wonder these are one of the most expensive cities for a one-bedroom apartments. Take San Francisco, the average house there will set you back about $1.1 million. That's way above what you'd pay in many other parts of the country like Ohio ($259,100) or Mississippi ($261,800). So, folks living in these high-cost areas must land high-paying gigs to afford their lifestyle and push them into that top 5% bracket.

Your job is another big piece of the puzzle. Fields like technology, finance, and law are known for coughing up some hefty paychecks and are some of the best jobs if you want to retire early. Software engineers in the U.S. make an average of $105,000 to $180,000 a year. Over in finance, investment bankers start at around $100,000 and can make way up to $600,000 or more, especially when you factor in performance bonuses. And in law, corporate partners at law firms might pull in an average of $1,488,000, while labor and employment partners are looking at around $653,000.

To land in the top 5% of earners, especially if you're just starting out, you'll need to boost your education and pick up skills that employers really want. Tech roles are a solid choice: the 2025 Dice Tech Salary Report shows tech pros earn an average of $112,521 — that's a 1.2% bump from last year. But tech isn't your only ticket. Healthcare is another field with big money potential. Becker's Hospital Review notes that healthcare ranks 14th in IT salaries across North America, with an average paycheck of $113,758. And if you get into specialized roles like healthcare IT project management, you could start at over $124,000 a year.

High-paying jobs sound awesome, but without room to move up, things can get stale pretty quickly. So, look at fields known not just for good pay, but also for plenty of growth — like Artificial Intelligence (AI). Here's what growth to an AI developer looks like: Entry-Level (0 to 2 years), approximately $51,500 to $78,500; Mid-Level (2 to 5 years), around $106,264; Senior-Level (6 to 10 years), approximately $175,000; Lead AI Developer, average of $254,707; AI Director, around $294,432.