How Much Do You Need to Earn to Be in the Top 1% in Your State? 2025 Study

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.