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Here’s How Much It Takes To Be in the Top 1% in America

Young businesswoman in a car at night with neon urban lights
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Ever wonder what it takes to be at the top?

SmartAsset analyzed IRS data to figure out what the top 1% of earners make in every state, based on adjusted gross income (AGI) and accounting for inflation.

Nationwide, it takes an AGI of at least $652,657 to be part of the 1%. To see how your AGI compares, check line 11 of your 2022 tax return.

Following is how much the top 1% of earners make in every state, starting with the top 10.

10. New Hampshire

Manchester, New Hampshire
Sean Pavone / Shutterstock.com

Income threshold for the top 1% of earners in this state: $659,037

Effective tax rate paid by the top 1% of earners in this state: 26.25%

The top 1% of earners in New Hampshire make more than nine times as much as the U.S. median household income of about $71,000. And they’ll gradually get to keep more of it in the next few years, thanks to a phased out state tax on dividends and interest.

9. Illinois

Chicago, Illinois
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Income threshold for the top 1% of earners in this state: $660,810

Effective tax rate paid by the top 1% of earners in this state: 26.35%

Illinois is one of “9 States That Want To Tax the Wealthy in 2023,” although it hasn’t come to pass yet. If it does, the state would have up to $500 million a year to spend on after-school programs and health care among other things, supporters say.

8. Florida

Fisher Island, Miami
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Income threshold for the top 1% of earners in this state: $694,987

Effective tax rate paid by the top 1% of earners in this state: 25.82%

Florida has no state income tax or estate tax, which are two of many reasons it’s an attractive retirement destination.

7. Colorado

Centennial, Colorado
Faina Gurevich / Shutterstock.com

Income threshold for the top 1% of earners in this state: $709,092

Effective tax rate paid by the top 1% of earners in this state: 25.86%

Coloradans pay a flat state income tax rate of 4.4%, and some areas collect local income taxes. Between state and local income taxes, Coloradans pay about $1,763 per capita, according to the Tax Foundation.

6. New York

Wealthy businesswoman in New York City
Nick Starichenko / Shutterstock.com

Income threshold for the top 1% of earners in this state: $776,662

Effective tax rate paid by the top 1% of earners in this state: 28.29%

New York lowered personal income tax for 2023. People who moved out of state during the pandemic also may have cost the state as much as 20% of state tax revenue compared to last fiscal year.

5. Washington

Tacoma, Washington
Sean Pavone / Shutterstock.com

Income threshold for the top 1% of earners in this state: $804,853

Effective tax rate paid by the top 1% of earners in this state: 25.99%

A 7% capital gains tax adopted in 2021 brought in around $848 million this fiscal year for Washington.

4. New Jersey

Newark, New Jersey
mandritoiu / Shutterstock.com

Income threshold for the top 1% of earners in this state: $817,346

Effective tax rate paid by the top 1% of earners in this state: 28.01%

New Jersey has the highest property taxes in the country, but is lowering them for seniors with incomes of less than $500,000. That could mean up to $6,500 in savings per eligible household by 2026.

3. California

Malibu, California beach at sunset
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Income threshold for the top 1% of earners in this state: $844,266

Effective tax rate paid by the top 1% of earners in this state: 26.95%

California is another state considering a wealth tax this year. It would amount to 1.5% extra for billionaires.

2. Massachusetts

Boston, Massachusetts
f11photo / Shutterstock.com

Income threshold for the top 1% of earners in this state: $903,401

Effective tax rate paid by the top 1% of earners in this state: 27.15%

Massachusetts is the rare state that raised income taxes in 2023. The new 4% surtax targets taxpayers earning more than $1 million a year — which affects less than the top 1% of earners, according to SmartAsset’s analysis.

1. Connecticut

Hartford, Connecticut
Sean Pavone / Shutterstock.com

Income threshold for the top 1% of earners in this state: $952,902

Effective tax rate paid by the top 1% of earners in this state: 28.4%

Connecticut is considering multiple new tax proposals on the wealthy, including higher property taxes, corporate business taxes and a surcharge on investment income for those making more than $500,000 a year.

Other states

Grand Teton National Park
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Following is the threshold to be in the top 1% of income earners in the rest of the country, in descending order:

  • Wyoming: $656,118
  • Virginia: $643,848
  • Maryland: $633,333
  • Texas: $631,849
  • Utah: $630,544
  • Minnesota: $626,451
  • Nevada: $603,751
  • South Dakota: $590,373
  • Pennsylvania: $588,702
  • North Dakota: $585,556
  • Georgia: $585,397
  • Oregon: $571,813
  • Arizona: $564,031
  • Idaho: $560,040
  • North Carolina: $559,762
  • Montana: $559,656
  • Kansas: $554,912
  • Rhode Island: $548,531
  • Tennessee: $548,329
  • Alaska: $542,824
  • Nebraska: $535,651
  • Delaware: $529,928
  • Vermont: $518,039
  • Wisconsin: $517,321
  • South Carolina: $508,427
  • Michigan: $504,671
  • Maine: $502,605
  • Missouri: $500,626
  • Ohio: $500,253
  • Hawaii: $495,263
  • Iowa: $483,985
  • Indiana: $473,685
  • Alabama: $470,341
  • Oklahoma: $460,172
  • Louisiana: $458,269
  • Arkansas: $450,700
  • Kentucky: $445,294
  • New Mexico: $411,395
  • Mississippi: $381,919
  • West Virginia: $367,582

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