One in every 15 Americans has a net worth of over seven figures, according to recent data. As more individuals reach this elite income level, data indicates that wealth distribution varies significantly between states, with coastal states leading the way.
Yahoo News compiled 2022 data from the Internal Revenue Service to reveal which states have the most households with adjusted gross incomes of more than $1 million per year. This does not include investments home values, stocks, retirement accounts, and other assets.
In the last year, 379,000 Americans have become millionaires. The research found that about 800,000 households across the U.S. brought in at least $1 million, which is more than double the amount from a decade ago.
According to the Global Wealth Report 2025, the U.S. is home to the world’s wealthiest. These wealthy households tend to be concentrated in coastal states such as Connecticut, Massachusetts, and New York.
One landlocked state comes close behind in wealth. Wyoming made the top 10 with no state income tax and a developing luxury real estate market.
Connecticut leads the nation with nearly 90 tax returns per 10,000 filers in 2022. Massachusetts follows closely behind with 76 million-dollar tax returns per 10,000, and New York follows with 71 per 10,000.
Although coastal states dominate the rankings, the data shows a trend of wealth extending to the West. Mountain states such as Wyoming, Montana, and Idaho have shown remarkable growth as million-dollar households have tripled between 2013 and 2022.
On the other side of the scale, West Virginia ranked last with 16 million-dollar tax returns per 10,000 filers.
Where does Alabama rank?
The southern state is 40th in million-dollar households with 30 million-dollar tax returns per 10,000 filers.
Mountain Brook has the most high earners in Alabama. The average household income in this Birmingham suburb is $302,510. According to the Census Bureau, this is nearly 5 times the state average of $62,212.
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