Here’s How Much You Need To Earn To Be ‘Rich’ in Every State

Money is a funny thing. Society as a whole often downplays the pursuit of wealth, and yet most people spend their lives in a quest to accumulate it. This dichotomy is put into focus nicely by two characters from Pulitzer Prize-winning author David Mamet’s screenplay for “The Spanish Prisoner”:

Jimmy: Money. Impresses everyone. What did it ever do for one?

Joe: It’s useful if you want to buy things.

If you really want to be in a position to “buy things,” you’ll need to earn a lot more than the average income in America — you’ll want to be rich. But, what exactly does “rich” mean? To a large degree, it’s a matter of geography. 

For example, in the lowest-income state in the nation, Mississippi, earning $254,362 per year is enough to put you in the top 1%. Only $159,419 is needed to crack the top 5%.

While earning a quarter of a million dollars is nothing to sneeze at, in the higher-income states, like New York and Connecticut, $250,000 in earnings is only about one-tenth of what you’ll need to join the top 1%. In fact, the top 1% have an average annual income of over $1 million in 21 states. 

Of course, there are many variables that play into being rich in America, and the state you reside in is only one. As the recent civil unrest has demonstrated, America is unequal along racial lines, and this plays into the income picture as well. According to the National Partnership for Women and Families, black women still only earn 62% of what white males earn, for example.

Macroeconomics also plays a role in shaping who is rich and who is not. The economic fallout from the global COVID-19 pandemic has pointed this out in stark terms. According to the U.S. Department of Labor, the unemployment rate skyrocketed to nearly 15% in April 2020. There’s still a chance that the unemployment rate goes even higher from there. 

Thus, the brackets defining what is “rich” in every state are a moving target. To get a snapshot in time of how income is distributed across America, GOBankingRates conducted a study of state incomes as of May 28. From these numbers, the amount needed to be in the top 1% or 5% of earners was defined. 

One thing that’s made abundantly clear from the study is that America is indeed the land of opportunity. In every single state, at least 5% of the population is earning over $250,000 per year, a staggering sum to the average American. If your goal is to rub elbows with the rich and famous, take a look at these results. You may find that moving just a few states over gives you the opportunity to earn astronomical amounts of money. 

On the flip side, if you’d rather be a big fish in a little pond, consider moving to a state with a lower overall income. Every state has its own richest small town, and if you can maintain your level of earnings, you might find yourself in the top 1% after all.

Last updated: Sept. 1, 2020

Mississippi

• Average annual household income of the top 5%: $266,248
• The minimum you need to make to be in the top 5%: $159,419
• Average annual household income of the top 1%: $580,461
• The minimum you need to make to be in the top 1%: $254,362

Look: 8 Key Signs You’re on Track To Become a 401(k) Millionaire

Arkansas

• Average annual household income of the top 5%: $295,817
• The minimum you need to make to be in the top 5%: $168,132
• Average annual household income of the top 1%: $864,772
• The minimum you need to make to be in the top 1%: $255,050

New Mexico

• Average annual household income of the top 5%: $292,483
• The minimum you need to make to be in the top 5%: $178,600
• Average annual household income of the top 1%: $615,082
• The minimum you need to make to be in the top 1%: $255,429

West Virginia

• Average annual household income of the top 5%: $259,056
• The minimum you need to make to be in the top 5%: $159,695
• Average annual household income of the top 1%: $535,648
• The minimum you need to make to be in the top 1%: $258,078

Kentucky

• Average annual household income of the top 5%: $304,261
• The minimum you need to make to be in the top 5%: $174,490
• Average annual household income of the top 1%: $719,012
• The minimum you need to make to be in the top 1%: $274,818

Alabama

• Average annual household income of the top 5%: $299,563
• The minimum you need to make to be in the top 5%: $178,690
• Average annual household income of the top 1%: $743,644
• The minimum you need to make to be in the top 1%: $297,564

Maine

• Average annual household income of the top 5%: $310,899
• The minimum you need to make to be in the top 5%: $185,543
• Average annual household income of the top 1%: $655,870
• The minimum you need to make to be in the top 1%: $303,897

Hawaii

• Average annual household income of the top 5%: $397,794
• The minimum you need to make to be in the top 5%: $249,798
• Average annual household income of the top 1%: $797,001
• The minimum you need to make to be in the top 1%: $310,566

Idaho

• Average annual household income of the top 5%: $305,153
• The minimum you need to make to be in the top 5%: $174,431
• Average annual household income of the top 1%: $829,268
• The minimum you need to make to be in the top 1%: $314,532

Indiana

• Average annual household income of the top 5%: $305,058
• The minimum you need to make to be in the top 5%: $180,474
• Average annual household income of the top 1%: $804,275
• The minimum you need to make to be in the top 1%: $316,756

Louisiana

• Average annual household income of the top 5%: $311,973
• The minimum you need to make to be in the top 5%: $188,350
• Average annual household income of the top 1%: $814,386
• The minimum you need to make to be in the top 1%: $318,393

South Carolina

• Average annual household income of the top 5%: $316,888
• The minimum you need to make to be in the top 5%: $182,745
• Average annual household income of the top 1%: $761,185
• The minimum you need to make to be in the top 1%: $318,463

Montana

• Average annual household income of the top 5%: $310,920
• The minimum you need to make to be in the top 5%: $181,987
• Average annual household income of the top 1%: $855,976
• The minimum you need to make to be in the top 1%: $321,849

Vermont

• Average annual household income of the top 5%: $329,095
• The minimum you need to make to be in the top 5%: $199,305
• Average annual household income of the top 1%: $816,579
• The minimum you need to make to be in the top 1%: $321,969

Missouri

• Average annual household income of the top 5%: $324,853
• The minimum you need to make to be in the top 5%: $189,397
• Average annual household income of the top 1%: $944,804
• The minimum you need to make to be in the top 1%: $326,839

Michigan

• Average annual household income of the top 5%: $332,642
• The minimum you need to make to be in the top 5%: $196,212
• Average annual household income of the top 1%: $917,701
• The minimum you need to make to be in the top 1%: $328,649

Arizona

• Average annual household income of the top 5%: $344,768
• The minimum you need to make to be in the top 5%: $204,323
• Average annual household income of the top 1%: $882,657
• The minimum you need to make to be in the top 1%: $331,074

Read: 39 Jobs That Can Make You a Millionaire Before Retirement

Iowa

• Average annual household income of the top 5%: $316,770
• The minimum you need to make to be in the top 5%: $186,783
• Average annual household income of the top 1%: $788,419
• The minimum you need to make to be in the top 1%: $331,572

Tennessee

• Average annual household income of the top 5%: $339,023
• The minimum you need to make to be in the top 5%: $187,561
• Average annual household income of the top 1%: $947,021
• The minimum you need to make to be in the top 1%: $332,913

Oklahoma

• Average annual household income of the top 5%: $314,584
• The minimum you need to make to be in the top 5%: $183,094
• Average annual household income of the top 1%: $932,520
• The minimum you need to make to be in the top 1%: $333,139

Ohio

• Average annual household income of the top 5%: $325,825
• The minimum you need to make to be in the top 5%: $191,332
• Average annual household income of the top 1%: $858,965
• The minimum you need to make to be in the top 1%: $334,979

Delaware

• Average annual household income of the top 5%: $371,767
• The minimum you need to make to be in the top 5%: $218,650
• Average annual household income of the top 1%: $869,461
• The minimum you need to make to be in the top 1%: $340,770

Nevada

• Average annual household income of the top 5%: $341,392
• The minimum you need to make to be in the top 5%: $194,811
• Average annual household income of the top 1%: $1,354,780
• The minimum you need to make to be in the top 1%: $341,335

North Carolina

• Average annual household income of the top 5%: $340,710
• The minimum you need to make to be in the top 5%: $198,033
• Average annual household income of the top 1%: $902,972
• The minimum you need to make to be in the top 1%: $343,066

Rhode Island

• Average annual household income of the top 5%: $375,825
• The minimum you need to make to be in the top 5%: $223,477
• Average annual household income of the top 1%: $928,204
• The minimum you need to make to be in the top 1%: $346,657

Wisconsin

• Average annual household income of the top 5%: $331,189
• The minimum you need to make to be in the top 5%: $191,091
• Average annual household income of the top 1%: $964,358
• The minimum you need to make to be in the top 1%: $349,905

Related: How Much You Really Take Home From a $100K Salary in Every State

Oregon

• Average annual household income of the top 5%: $346,699
• The minimum you need to make to be in the top 5%: $210,272
• Average annual household income of the top 1%: $908,898
• The minimum you need to make to be in the top 1%: $358,937

Nebraska

• Average annual household income of the top 5%: $323,852
• The minimum you need to make to be in the top 5%: $191,514
• Average annual household income of the top 1%: $945,869
• The minimum you need to make to be in the top 1%: $363,310

Georgia

• Average annual household income of the top 5%: $364,318
• The minimum you need to make to be in the top 5%: $211,854
• Average annual household income of the top 1%: $995,576
• The minimum you need to make to be in the top 1%: $371,811

Utah

• Average annual household income of the top 5%: $357,037
• The minimum you need to make to be in the top 5%: $210,204
• Average annual household income of the top 1%: $1,057,066
• The minimum you need to make to be in the top 1%: $374,467

Kansas

• Average annual household income of the top 5%: $343,132
• The minimum you need to make to be in the top 5%: $197,180
• Average annual household income of the top 1%: $1,034,676
• The minimum you need to make to be in the top 1%: $375,344

Pennsylvania

• Average annual household income of the top 5%: $365,336
• The minimum you need to make to be in the top 5%: $214,807
• Average annual household income of the top 1%: $1,100,962
• The minimum you need to make to be in the top 1%: $388,593

Alaska

• Average annual household income of the top 5%: $367,820
• The minimum you need to make to be in the top 5%: $232,313
• Average annual household income of the top 1%: $910,059
• The minimum you need to make to be in the top 1%: $400,017

New Hampshire

• Average annual household income of the top 5%: $384,297
• The minimum you need to make to be in the top 5%: $243,075
• Average annual household income of the top 1%: $1,134,101
• The minimum you need to make to be in the top 1%: $405,286

Wyoming

• Average annual household income of the top 5%: $321,324
• The minimum you need to make to be in the top 5%: $188,048
• Average annual household income of the top 1%: $1,900,659
• The minimum you need to make to be in the top 1%: $405,596

South Dakota

• Average annual household income of the top 5%: $320,616
• The minimum you need to make to be in the top 5%: $179,579
• Average annual household income of the top 1%: $1,130,048
• The minimum you need to make to be in the top 1%: $407,406

Florida

• Average annual household income of the top 5%: $376,014
• The minimum you need to make to be in the top 5%: $205,967
• Average annual household income of the top 1%: $1,543,124
• The minimum you need to make to be in the top 1%: $417,587

Also See: What You Actually Take Home From a $200,000 Salary in Every State

Virginia

• Average annual household income of the top 5%: $423,736
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $1,109,984
• The minimum you need to make to be in the top 1%: $425,144

Texas

• Average annual household income of the top 5%: $389,861
• The minimum you need to make to be in the top 5%: $226,914
• Average annual household income of the top 1%: $1,343,897
• The minimum you need to make to be in the top 1%: $440,758

Minnesota

• Average annual household income of the top 5%: $391,667
• The minimum you need to make to be in the top 5%: $228,969
• Average annual household income of the top 1%: $1,185,581
• The minimum you need to make to be in the top 1%: $443,118

North Dakota

• Average annual household income of the top 5%: $376,227
• The minimum you need to make to be in the top 5%: $209,093
• Average annual household income of the top 1%: $1,080,845
• The minimum you need to make to be in the top 1%: $445,415

Maryland

• Average annual household income of the top 5%: $445,412
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $1,135,718
• The minimum you need to make to be in the top 1%: $445,783

Washington

• Average annual household income of the top 5%: $403,364
• The minimum you need to make to be in the top 5%: $243,781
• Average annual household income of the top 1%: $1,383,223
• The minimum you need to make to be in the top 1%: $451,395

Illinois

• Average annual household income of the top 5%: $411,973
• The minimum you need to make to be in the top 5%: $237,486
• Average annual household income of the top 1%: $1,412,024
• The minimum you need to make to be in the top 1%: $456,377

Colorado

• Average annual household income of the top 5%: $402,872
• The minimum you need to make to be in the top 5%: $239,011
• Average annual household income of the top 1%: $1,261,053
• The minimum you need to make to be in the top 1%: $458,576

California

• Average annual household income of the top 5%: $473,720
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $1,693,094
• The minimum you need to make to be in the top 1%: $514,694

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New York

• Average annual household income of the top 5%: $501,802
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $2,202,480
• The minimum you need to make to be in the top 1%: $550,174

Massachusetts

• Average annual household income of the top 5%: $482,625
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $1,904,805
• The minimum you need to make to be in the top 1%: $582,774

New Jersey

• Average annual household income of the top 5%: $495,447
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $1,581,829
• The minimum you need to make to be in the top 1%: $588,575

Connecticut

• Average annual household income of the top 5%: $547,071
• The minimum you need to make to be in the top 5%: $250,000+
• Average annual household income of the top 1%: $2,522,806
• The minimum you need to make to be in the top 1%: $700,800

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Methodology: In order to find out how much you need to earn to be ‘rich’ in each state, GOBankingRates looked at the 2018 American Community Survey conducted by the U.S. Census Bureau to source the (1) average household income of the top 5% in every state and (2) lower limit household income for the top 5% in every state. GOBankingRates then looked at the Economic Policy Institute’s 2018 report “Income Inequality in the United States” to find the (3) average household income for the top 1% in each state and (4) lower limit household income for the top 1% in every state. All data was collected and is up to date as of May 28, 2020.

About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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