The Best and Worst States to Be Rich in America
Which states are best for rich Americans? Find out.
Cameron Huddleston
Life and Money Columnist
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If you’re wealthy, it’s certainly easier to live where you want — including the wealthiest zip code in every state. But, there might be some states that are better suited for the rich.
To find out which places are best for the wealthy class, GOBankingRates looked at financial factors such as property tax rates, income tax rates and average earnings of the top 1 percent in each state. We also looked at quality of life factors such as property crime rates and average ACT scores as an indicator of school performance.
Keep reading to discover the best and worst states for rich Americans.
50. New Mexico
New Mexico is one of the worst states for families to live a richer life, according to a separate GOBankingRates study, and it ranks at the bottom of our list. It has the highest property crime rate, and the average income of the top 1 percent in the state is lower than in most states.
49. Hawaii
Hawaii is one of the most expensive states to live in, but it’s not one of the best states for the rich. The average income of the top 1 percent in Hawaii is $619,585 — which is lower than the average income of the upper class in most other states. And, the state income tax rate is among the highest in our rankings.
48. Wisconsin
Wisconsin ranked as one of the best states for the middle class in a 2017 GOBankingRates study. However, it’s one of the worst states for the upper class because of its high income tax rate and high property tax rate of 2 percent. Someone with a $1 million home would pay an average of $20,000 in annual property taxes.
47. Arizona
Arizona’s upper class isn’t as well off as the top 1 percent in other states. In fact, the average income of its top 1 percent is the second lowest in our rankings.
46. Oregon
Oregon’s high state income tax rate drags it down in our rankings. Income over $125,000 for single filers and $250,000 for married couples filing jointly is taxed at 9.9 percent.
45. Iowa
Iowa’s relatively high property and income tax rates and low average income for its top 1 percent pull it down in our rankings. On the plus side, its property crime rate is lower than in most states.
44. Mississippi
The average income of the top 1 percent in Mississippi is lower than most states. However, its affordable cost of living and growing middle class makes it one of the best states for the middle class.
43. North Carolina
North Carolina ranks low for all of the criteria considered except property tax. The state’s average property tax rate is just 0.72 percent, which means those who own million-dollar homes pay just $7,180 in property tax annually.
42. Alabama
Alabama’s upper class isn’t nearly as wealthy as the richest 1 percent in the rest of the states. In fact, the average income of the state’s top 1 percent — $488,634 — is the lowest in our rankings.
41. Michigan
Relatively low standardized test scores and high property and income tax rates pull Michigan down in our rankings. Plus, the average income of the state’s top 1 percent is lower than the average income of the wealthy class in more than half of the states.
40. Nebraska
Nebraska ranks low due to its relatively high property tax rate and the low average income of its top 1 percent. But it’s home to one of the richest entrepreneurs in the U.S., Berkshire Hathaway CEO Warren Buffett.
39. Missouri
High crime and property tax rates pull Missouri down in our rankings — along with a relatively low average ACT score.
38. Alaska
Alaska’s property crime rate — the third highest in our rankings — might be a turnoff for the upper class. High property tax rates, relatively low average ACT scores and average income of the top 1 percent also drag the state down in our rankings.
37. Georgia
Georgia’s property tax rate is higher than the rate in more than half of the states. The average income of the top 1 percent is also lower than in half of the states.
36. Tennessee
High property crime rates and low average ACT scores are strikes against Tennessee. But its low property tax rate softens the blow of owning an expensive home.
35. Kentucky
The average income of Kentucky’s top 1 percent is lower than in most states. However, its property tax is relatively low, which means the rich fork over less in taxes for expensive homes.
34. Arkansas
The average income of the top 1 percent in Arkansas is among the lowest in our rankings. Plus, the state’s property crime rate is the fifth highest.
33. Kansas
A relatively high property tax rate pulls Kansas down in the rankings. It doesn’t help that the average income of its wealthiest residents is less than $1 million.
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32. Louisiana
Louisiana isn’t one of the best states for the wealthy class because it has relatively high property crime rates and low average ACT scores. And, the average income of its top 1 percent is less than $1 million.
31. South Carolina
One of the lowest average ACT scores and relatively high crime rates might make South Carolina unappealing for the wealthy class. It doesn’t help that the average income of the state’s top 1 percent is below $1 million.
30. Illinois
Illinois has the highest average property tax rate of any state. The 2.77 percent rate forces those with a home worth $1 million to pay $27,660 in property taxes annually.
29. Idaho
Low crime and property tax rates are pluses for the upper class in Idaho. However, the average income of the state’s top 1 percent is among the lowest in our rankings.
28. New Jersey
The average income of the top 1 percent in New Jersey — $1.45 million — is the fifth highest in our rankings, but its income tax rate is among the highest. The state’s average property tax rate of 2.2 percent is the fourth highest in our rankings.
27. Vermont
Vermont’s property crime rates and average ACT scores are among the best in our rankings. But its property and income tax rates are relatively high, and the average income of the top 1 percent is relatively low.
26. Utah
On the plus side, Utah’s property tax rate is among the lowest in our rankings. But the state’s relatively high property crime rates, relatively low average ACT scores and average income of the top 1 percent that’s below $ 1 million pull it down in the rankings.
25. Oklahoma
Oklahoma has the fifth-lowest property tax rate. But it’s not one of the best states for the upper class because it doesn’t score well against the other criteria.
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24. Washington
An average income of more than $1 million among Washington’s top 1 percent helps the state land in the top half of our rankings, but a high property crime rate keeps it from ranking higher.
23. Maine
Maine has low property crime rates, relatively low property tax rates and high average ACT scores. But its income tax rate is among the highest in our rankings, and the average income of Maine’s wealthiest ranks near the bottom.
22. Montana
Montana’s property tax rate is among the lowest in our rankings, which is a plus for the upper class with expensive homes. But the average income of the state’s top 1 percent is also among the lowest.
21. Delaware
Like Montana, Delaware has a low property tax rate. However, the average income of its wealthiest residents is less than $750,000.
20. New York
The average income of New York’s top 1 percent — $2 million — is the third highest in our rankings. But its average property tax rate of 2.22 percent is the second highest, and its income tax rate is among the highest.
19. Texas
The average income of the top 1 percent in Texas — $1.3 million — is among the highest in our rankings. Plus, Texas is one of only seven states with no income tax.
18. Pennsylvania
Pennsylvania benefits from low property crime rates and relatively high average ACT scores. But its property tax rate is relatively high.
17. Ohio
Relatively low property and income tax rates make Ohio one of the better states for the upper class. However, the average income of its top 1 percent ranks among the bottom half of states.
16. New Hampshire
New Hampshire has the lowest property crime rate of any state, but its property tax rate is among the highest in our rankings.
15. Minnesota
Relatively low property and income tax rates make Minnesota a good state for the upper class. Plus, the average income of the top 1 percent in the state is more than $1 million.
14. Indiana
Although the average income of the top 1 percent in Indiana is relatively low, the state ranks high for all of the other criteria considered. It’s also one of the best states to retire rich because of its low cost of living, another GOBankingRates study found.
13. Colorado
Colorado’s 0.7 percent property tax rate is among the lowest in our rankings. It helps that its income tax is a flat 4.63 percent of federal taxable income.
12. California
The top 1 percent in California have a higher average income than the wealthiest in most states. However, those high-income earners can get hit by the state’s top income tax rate of 13.3 percent.
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11. Maryland
The upper class in Maryland benefit from relatively low property and income tax rates. Plus, the average income of the top 1 percent is more than $1 million.
10. Connecticut
Connecticut’s upper class is among the wealthiest in the U.S. The average income of the state’s top 1 percent — $2.4 million — is the highest in our rankings.
9. Virginia
Virginia’s property crime rate is among the lowest, and its property and income tax rates are relatively low.
8. Rhode Island
A low crime rate and relatively low property and income tax rates help Rhode Island land among the top 10 best states for the upper class.
7. Florida
The average income of the top 1 percent in Florida — $1.2 million — is higher than in most states. But what really makes Florida one of the best states for the wealthy class is its lack of an income tax.
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6. North Dakota
The average income of the top 1 percent in North Dakota is about $1.3 million. Fortunately for these high earners, the state’s top income tax rate is a low 2.9 percent.
5. West Virginia
The average income of the top 1 percent in West Virginia isn’t as high as the income of the richest in the other top 10 states, but its property tax rate is the fourth lowest — just 0.52 percent.
4. Nevada
The upper class benefits from living in this tax-friendly state. In fact, it’s one of the most tax-friendly states for retirees. Nevada has no income tax, and its property tax rate is less than 1 percent.
3. Massachusetts
Massachusetts has the highest average ACT scores, which could be a sign of good school districts. Plus, the average income of its top 1 percent — $1.7 million — is the fourth highest in our rankings.
2. South Dakota
A low property crime rate, relatively low property tax rates and no state income tax help South Dakota land the No. 2 spot in our rankings.
1. Wyoming
Wyoming’s top 1 percent has the second-highest average income in our rankings. Unlike Connecticut, which has the highest, Wyoming has no income tax. Plus, it’s one of the states where the rich are getting richer, another GOBankingRates study found.
Top and Bottom States for the Wealthy Class
For a recap, here are the top five states for the upper class:
1. Wyoming
2. South Dakota
3. Massachusetts
4. Nevada
5. West Virginia
Here are the five worst states for the wealthy:
50. New Mexico
49. Hawaii
48. Wisconsin
47. Arizona
46. Oregon
Now click through to see the best and worst states to grow your money.
Methodology: GOBankingRates considered five factors when ranking the best states for the wealthy class: 1) property crime by rate per 100,000 people, sourced from the FBI; 2) average ACT scores as an indicator of school performance, sourced from the ACT; 3) income tax, sourced from Tax Foundation; 4) average property tax, sourced from Smart Asset; and 5) average income of the top 1 percent, sourced from the Economic Policy Institute.
About the Author
Cameron Huddleston
Cameron Huddleston is an award-winning journalist with more than 18 years of experience writing about personal finance. Her work has appeared in Kiplinger’s Personal Finance, Business Insider, Chicago Tribune, Fortune, MSN, USA Today and many more print and online publications. She also is the author of Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances.
U.S. News & World Report named her one of the top personal finance experts to follow on Twitter, and AOL Daily Finance named her one of the top 20 personal finance influencers to follow on Twitter. She has appeared on CNBC, CNN, MSNBC and “Fox & Friends” and has been a guest on ABC News Radio, Wall Street Journal Radio, NPR, WTOP in Washington, D.C., KGO in San Francisco and other personal finance radio shows nationwide. She also has been interviewed and quoted as an expert in The New York Times, Chicago Tribune, Forbes, MarketWatch and more.
She has an MA in economic journalism from American University and BA in journalism and Russian studies from Washington & Lee University.
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