Nearly 1.5 million households across the United States now rank among the top 1% of earners, according to the latest tax return data from the Internal Revenue Service (IRS). On average, it takes $731,492 in annual income to be a part of this group. But that threshold looks different depending on where you live. Economic conditions, tax policies and cost of living vary significantly from state to state, resulting in wide disparities between what it takes to become a top 1% earner across the nation. 

SmartAsset ranked U.S. states based on the income it takes to be a part of the top 1% in 2025 dollars based on the latest tax return data available from the IRS. 

Key Findings

Connecticut is the only state where it takes more than $1 million to be a top 1% earner. Retaining its top ranking with the highest income threshold nationwide, Connecticut residents must earn at least $1,056,996 annually to be in the top 1%. Just over 16,900 tax returns in the state were filed at this income level or above.

The income needed to be in the top 1% of earners decreased in all but three states. North Dakota ($695,759); Florida ($859,381); and Oklahoma ($544,679) were the only states where the minimum income needed to join the top 1% of earners increased year over year. North Dakota saw the most significant shift, a $11,634 jump, which propelled it from  24th to 15th in the national rankings. 

California has the largest population of top 1% earners, and some of the highest incomes. A total of 175,045 tax returns qualify as the top 1% in California, each reporting a minimum of $905,396 in annual income. To be in the top 5% of earners in California, a household must earn $353,073 or more.

In four states, the threshold for reaching the top 1% is less than $500k. West Virginia has the lowest income threshold at $416,310, which 7,316 households reported earning at or above. Mississippi ($439,479); New Mexico ($451,639); and Kentucky ($496,281) follow.

10 States With the Highest Income Needed to Be in the Top 1%

Connecticut

Income floor for top 1% of earners: $1,056,996

Number of top 1% returns: 16,917

Income floor for top 5% of earners: $362,263

Number of top 5% returns: 84,585

Massachusetts

Income floor for top 1% of earners: $965,170

Number of top 1% returns: 32,795

Income floor for top 5% of earners: $378,434

Number of top 5% returns: 163,973

California

Income floor for top 1% of earners: $905,396

Number of top 1% returns: 175,045

Income floor for top 5% of earners: $353,073

Number of top 5% returns: 875,225

New Jersey

Income floor for top 1% of earners: $901,082

Number of top 1% returns: 43,042

Income floor for top 5% of earners: $367,108

Number of top 5% returns: 215,209

New York

Income floor for top 1% of earners: $891,640

Number of top 1% returns: 91,840

Income floor for top 5% of earners: $307,753

Number of top 5% returns: 459,201

Florida

Income floor for top 1% of earners: $859,381

Number of top 1% returns: 105,101

Income floor for top 5% of earners: $281,811

Number of top 5% returns: 525,503

Washington

Income floor for top 1% of earners: $819,101

Number of top 1% returns: 35,597

Income floor for top 5% of earners: $355,767

Number of top 5% returns: 177,986

Colorado

Income floor for top 1% of earners: $772,989

Number of top 1% returns: 27,685

Income floor for top 5% of earners: $318,659

Number of top 5% returns: 138,423

Wyoming

Income floor for top 1% of earners: $771,369

Number of top 1% returns: 2,611

Income floor for top 5% of earners: $255,320

Number of top 5% returns: 13,057

Texas

Income floor for top 1% of earners: $743,955

Number of top 1% returns: 128,130

Income floor for top 5% of earners: $284,661

Number of top 5% returns: 640,648

10 States With the Lowest Income Needed to Be in the Top 1%

West Virginia

Income floor for top 1% of earners: $416,310

Number of top 1% returns: 7,316

Income floor for top 5% of earners: $196,335

Number of top 5% returns: 36,580

Mississippi

Income floor for top 1% of earners: $439,479

Number of top 1% returns: 11,731

Income floor for top 5% of earners: $195,171

Number of top 5% returns: 58,655

New Mexico

Income floor for top 1% of earners: $451,639

Number of top 1% returns: 9,310

Income floor for top 5% of earners: $211,101

Number of top 5% returns: 46,548

Kentucky

Income floor for top 1% of earners: $496,281

Number of top 1% returns: 18,395

Income floor for top 5% of earners: $215,196

Number of top 5% returns: 91,977

Arkansas

Income floor for top 1% of earners: $517,761

Number of top 1% returns: 12,198

Income floor for top 5% of earners: $217,087

Number of top 5% returns: 60,992

Indiana

Income floor for top 1% of earners: $531,332

Number of top 1% returns: 30,120

Income floor for top 5% of earners: $227,098

Number of top 5% returns: 150,598

Alabama

Income floor for top 1% of earners: $532,600

Number of top 1% returns: 20,185

Income floor for top 5% of earners: $226,634

Number of top 5% returns: 100,924

Oklahoma

Income floor for top 1% of earners: $544,679

Number of top 1% returns: 16,106

Income floor for top 5% of earners: $224,074

Number of top 5% returns: 80,530

Ohio

Income floor for top 1% of earners: $550,724

Number of top 1% returns: 53,103

Income floor for top 5% of earners: $232,196

Number of top 5% returns: 265,514

Maine

Income floor for top 1% of earners: $550,936

Number of top 1% returns: 6,618

Income floor for top 5% of earners: $236,338

Number of top 5% returns: 33,091

Data and Methodology

To determine the income needed to be in the top 1% of earners in each state, SmartAsset analyzed 2022 data from the IRS for individual tax filers. Figures were adjusted to May 2025 dollars using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) U.S. city average series for all items, not seasonally adjusted.

Questions about this study? Contact us at press@smartasset.com

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