The top 1 percent has long been a benchmark of financial success in the United States. But the income required to attain that elite status depends heavily on where you live.
A recent study by SmartAsset, using the latest IRS tax return data adjusted for inflation to 2025 dollars, shows the income threshold to join the 1 percent in every U.S. state.
The thresholds vary dramatically. In Connecticut, you need to earn more than $1 million, while in West Virginia, just over $416,000 will get you into the 1 percent.
Being in the 1 percent
To be counted among the top 1 percent of U.S. earners, a household needs an average annual income of $731,492. That is more than nine times the national median of $80,610. Reaching this level often comes with financial freedom and access to more investment opportunities.
It also comes with more complex financial planning. High earners may face greater scrutiny and a higher risk of audits. In 2025, the income needed to reach the top 1 percent fell in nearly every state, reflecting a wider trend of slowing wage growth and easing inflation. Only North Dakota, Florida, and Oklahoma saw their thresholds increase.
Top 1% Income thresholds by state
Where you live plays a major role in what it takes to be among the top 1 percent.
Here is the full list of states, ordered from highest to lowest income threshold:
- Connecticut: $1,056,996
- Massachusetts: $965,170
- California: $905,396
- New Jersey: $901,082
- New York: $891,640
- Florida: $859,381
- Washington: $819,101
- Colorado: $772,989
- Wyoming: $771,369
- Texas: $743,955
- New Hampshire: $735,374
- Illinois: $731,202
- Virginia: $701,792
- Nevada: $703,713
- North Dakota: $695,759
- Utah: $690,548
- South Dakota: $687,190
- Georgia: $662,821
- Montana: $656,830
- Pennsylvania: $655,636
- Kansas: $609,946
- Oregon: $603,006
- Rhode Island: $603,162
- Nebraska: $603,899
- Minnesota: $671,408
- Maryland: $677,543
- Arizona: $641,262
- North Carolina: $640,783
- Tennessee: $638,299
- Idaho: $627,839
- Delaware: $578,580
- South Carolina: $580,600
- Vermont: $583,559
- Alaska: $586,381
- Hawaii: $561,147
- Michigan: $561,582
- Missouri: $559,043
- Iowa: $554,046
- Louisiana: $551,125
- Maine: $550,936
- Ohio: $550,724
- Oklahoma: $544,679
- Alabama: $532,600
- Indiana: $531,332
- Arkansas: $517,761
- Kentucky: $496,281
- New Mexico: $451,639
- Mississippi: $439,479
- West Virginia: $416,310
Making progress without a 1% paycheck
You do not need to be in the 1% to live comfortably or retire well. For some, aiming high provides a helpful target. It encourages better habits, clearer goals, and a longer-term view of money.
Most people who reach this income tier do more than earn a big paycheck. They grow their wealth through ownership, investing, and strategic planning.
If you want to feel more in control of your money, no matter how much you earn, here are a few simple ways to start.
- Grow your income. Earn extra income with minimal effort by taking surveys in your spare time. This company's members collectively earn over $55,000 daily.
- Put your money to work. Earn as much as possible on your emergency savings. SoFi Checking is offering 3.8% interest, plus a potential $300 signup bonus. (May change without notice.)
- Track what matters. Get a full picture of your finances with Origin. Build a budget, track your spending, and plan ahead for taxes and retirement.
- Use smart tax tools. If you have a high-deductible health plan, you should have a Health Savings Account. Check out Lively HSAs.
- Ask for advice. If you have more than $100,000 in savings, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than five minutes.
There’s no magic number that defines financial freedom. What matters is taking control, making thoughtful decisions, and building habits that support your life goals, not only your bank balance.
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