Here’s How Much You Need To Earn To Be ‘Rich’ in 23 Major Countries Around the World

How many Americans can be considered really rich? Not many.

According to a recent report from The Institute for Economic Equality at the Federal Reserve Bank of St. Louis, in the fourth quarter of 2022, the top 10% of households, as measured by wealth, had an average of $6.8 million and 68% of total household wealth. By contrast, the bottom 50% of households had $59,000 in wealth – just 3% of total household wealth.

As the rich get richer and the poor get poorer, the U.S. is hardly the country where everyone’s dreams can come true. It is indeed getting tougher for the middle class to hold their ground, let alone manage their bills and other expenses. But how does your standard of living compare to that of others around the globe?

Here’s a look at how much you need to be considered rich in 23 countries around the world.

• Annual pre-tax income needed to be in the 1%: $2,830,000
• Annual pre-tax income needed to be in the top 10%: $706,723

Australia has been a pioneer in economic freedom since the dawn of the Economic Freedom Index in 1995. According to the group’s most recent statistics, Australia’s annual GDP was $1.5 trillion, representing a 4.7% growth. Unemployment was 6.5%.

• Annual pre-tax income needed to be in the 1%: $195,547
• Annual pre-tax income needed to be in the top 10%: $46,363

It doesn’t take much money (in American dollars) to live like a king in Bangladesh. According to the 2023 Index of Economic Freedom, Bangladesh’s economy remains primarily unfree – ranked No. 123 in the world – and its economy is plagued by “corruption and judicial inefficiency.” The unemployment rate is only 4.4%, however.

• Annual pre-tax income needed to be in the 1%: $525,098
• Annual pre-tax income needed to be in the top 10%: $87,881

According to the Index of Economic Freedom, Brazil is mostly an unfree economy, and it has overwhelming debt. It has a GDP of $3.4 trillion, but it also holds a staggering 13.9% unemployment rate and inflation of 8.3%.

• Annual pre-tax income needed to be in the 1%: $3,130,000
• Annual pre-tax income needed to be in the top 10%: $751,842

Canada’s economy is in the upper tier when it comes to the most free, the Index of Economic Freedom reports. The country’s economy is ranked first among 32 countries in the Americas region, though it does have an unemployment rate of 7.5%.

• Annual pre-tax income needed to be in the 1%: $1,190,000
• Annual pre-tax income needed to be in the top 10%: $184,452

China has one of the largest economies in the world, but according to the Index of Economic Freedom, it’s mostly unfree because the ruling Communist Party maintains direct control of the $27.2 trillion economy.

• Annual pre-tax income needed to be in the 1%: $200,289
• Annual pre-tax income needed to be in the top 10%: $44,542

According to the Index of Economic Freedom, Egypt needs a stronger judicial system and greater property rights before it can move up the economic freedom scale. It ranks 151^st on the world scale.

• Annual pre-tax income needed to be in the 1%: $93,837
• Annual pre-tax income needed to be in the top 10%: $21,765

In the United States, $22,000 doesn’t get you all that far, but in Ethiopia, it can launch you into the top 10% of earners. According to the Index of Economic Freedom, the country’s economy is mostly unfree and progress has been slow. The inflation rate in Ethiopia is currently 26.8%.

• Annual pre-tax income needed to be in the 1%: $2,970,000
• Annual pre-tax income needed to be in the top 10%: $712,003

France runs a mostly free economy, and is working to reduce unemployment, which currently hovers at a rate of 8%. According to the Index of Economic Freedom, France has inflation of only 2.1%, however, and its GDP is $3.4 trillion.

• Annual pre-tax income needed to be in the 1%: $2,390,000
• Annual pre-tax income needed to be in the top 10%: $627,585

It takes less income to be in the 1% in Germany than it does in France. According to the Index of Economic Freedom, Germany is a largely free economy, and it has rebounded from the worldwide economic slowdown. Inflation sits at 3.2%, with unemployment at 3.8%.

• Annual pre-tax income needed to be in the 1%: $430,317
• Annual pre-tax income needed to be in the top 10%: $99,528

According to the Index of Economic Freedom, India has a mostly unfree economy, and would need ample and wide-reaching reform to improve its fiscal health. With 1.4 billion people and a $10.2 trillion GDP, the per capita GDP is just $7,431.

• Annual pre-tax income needed to be in the 1%: $148,620
• Annual pre-tax income needed to be in the top 10%: $35,623

Reforms have led to increased economic freedom in Indonesia, which as a $3.6 trillion GDP. Its economy ranks 10^th out of 39 countries in the Asia-Pacific Region, per the Index of Economic Freedom.

• Annual pre-tax income needed to be in the 1%: $2,580,000
• Annual pre-tax income needed to be in the top 10%: $639,855

Tourism is responsible for 13% of Italy’s GDP, which is $2.7 trillion. Post-pandemic unemployment remains high at 9.2%.

• Annual pre-tax income needed to be in the 1%: $2,250,000
• Annual pre-tax income needed to be in the top 10%: $532,075

According to the Index of Economic Freedom, Japan’s economy falls in the mostly free category. Its only major stumbling block is high government spending. The unemployment rate is about 2.8% in Japan, where the chief exports are cars, heavy machinery, and circuits and electronics.

• Annual pre-tax income needed to be in the 1%: $2,260,000
• Annual pre-tax income needed to be in the top 10%: $530,346

According to the Index of Economic Freedom, South Korea is a mostly free economy, with a top-notch labor force and a tremendous aptitude for innovation. But there’s still some corruption going on that would need to be addressed in order for the economy to better thrive. North Korea, on the other hand, is the least free economy in the world.

• Annual pre-tax income needed to be in the 1%: $810,790
• Annual pre-tax income needed to be in the top 10%: $136,896

According to the Index of Economic Freedom, Mexico is a moderately free economy, but governmental scandals have held the country back from being in the clear. A serious revamping of governmental integrity and a cleaning up of corruption are in order in Mexico, which has 130.3 million people and a $2.7 trillion GDP.

• Annual pre-tax income needed to be in the 1%: $328,552
• Annual pre-tax income needed to be in the top 10%: $77,968

According to the Index of Economic Freedom, Nigeria’s economy is predominantly not free, with violence in the country and fluctuating oil prices impacting the economy. The rate of inflation is 17%, with the GDP per capita at only $5,500. Nigeria’s unemployment rate has soared to 8.5%.

• Annual pre-tax income needed to be in the 1%: $188,798
• Annual pre-tax income needed to be in the top 10%: $43,567

Political and social instability, as well as domestic terrorism and natural disasters, have harmed Pakistan’s economy, according to the Index of Economic Freedom, Despite a population of 225.2 million, Pakistan’s GDP is just $1.3 trillion, which translates to just less than $6,000 per capita.

• Annual pre-tax income needed to be in the 1%: $192,335
• Annual pre-tax income needed to be in the top 10%: $43,757

According to the Index of Economic Freedom, the Philippines is just about in the middle of the freedom scale. The unemployment rate has fallen from 8.7% in 2021 to 2.5%, thanks to government efforts to generate jobs and boost entrepreneurism.

• Annual pre-tax income needed to be in the 1%: $585,000
• Annual pre-tax income needed to be in the top 10%: $107,150

Russia won’t rise in economic status until it deals with corruption, improves judicial independence and respects property rights, per the Index of Economic Freedom. Until then, investors will face risk.

• Annual pre-tax income needed to be in the 1%: $4,130,000
• Annual pre-tax income needed to be in the top 10%: $177,438

It takes a lot of dough to be among the wealthy elite in Singapore. According to the Index of Economic Freedom, Singapore is ranked as the freest economy in the world. This is partly because the country is the most stable in the world, benefiting from a government that enforces anticorruption laws and protects property rights.

• Annual pre-tax income needed to be in the 1%: $3,180,000
• Annual pre-tax income needed to be in the top 10%: $694,186

According to the Index of Economic Freedom, the United Kingdom’s economy is suffering from an expanded government that resulted in more government spending. The public debt is 95.2% of the GDP.

• Annual pre-tax income needed to be in the 1%: $4,680,000
• Annual pre-tax income needed to be in the top 10%: $984,787

According to the Index of Economic Freedom, the United States ranks at only No. 20 on the list of free economies. America’s biggest setback continues to be its high government spending and completely unfeasible levels of debt. Still, to be in either the top 1% or top 10% in the U.S. requires the highest income in the world.

• Annual pre-tax income needed to be in the 1%: $3,320,000
• Annual pre-tax income needed to be in the top 10%: $576,422

Welcome to the richest country in the Middle East/North Africa region, according to the Index of Economic Freedom. Oil and gas account for about 30% of the country’s $703.4 billion GDP.

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Nicole Spector contributed to the reporting for this article.

Methodology: GOBankingRates used data from the World Inequality Database to find the lower income threshold of the top 1% and top 10% of earners in 25 major countries in 2021 US dollars. Countries were chosen for inclusion in this piece on the basis of their exceptionally high GDP, population or income bracket threshold. All data was collected on and up to date as of June 5, 2023.