Riches can be a subjective term when it comes to wealth, as what may be considered rich by one person may not be the same for another. Money has varying values in different states. Determining what it means to be “rich” could involve looking at the top 5% income earners within a state. However, gaining entry into this exclusive club can be more difficult in some states than others.
To ascertain the threshold for being considered rich, GOBankingRates analyzed data from the U.S. Census Bureau’s 2021 American Community Survey to compare the average income of each state with that of its top 5% earners. This information sheds light on how much is needed to reach that elite status in each state, along with the substantial income gap between the top 5% and the average individual.
Alabama:
– Top 5% income threshold: $202,158
– Average income for top 5%: $336,788
– Median household income for the state: $54,943
– Income difference between top 5% and median: 6.1x
Alaska:
– Top 5% income threshold: $250,000
– Average income for top 5%: $394,694
– Median household income for the state: $80,287
– Income difference between top 5% and median: 4.9x
Arizona:
– Top 5% income threshold: $233,908
– Average income for top 5%: $395,620
– Average household income for the state: $65,913
– Income difference between top 5% and average person: 6.0x
Arkansas:
– Top 5% income threshold: $193,240
– Average income for top 5%: $344,470
– Average household income for the state: $52,123
– Income difference between top 5% and average person: 6.6x
And so on for each state, showcasing the income levels needed to be considered rich in each region.
The text provides information on household income levels in various states, comparing the average income of the top 5% earners to the median income of the entire state. Here are the highlights:
– Florida: Top 5% income needed is $236,080 with an average of $431,870. State average income is $61,777, with the top 5% making 7.0 times more than the average.
– Georgia: Top 5% income needed is $245,320 with an average of $422,018. State average income is $65,030, with the top 5% making 6.5 times more.
– Hawaii: Top 5% income needed is $250,000 with an average of $459,305. State median income is $88,005, with the top 5% making 5.2 times more.
– Idaho: Top 5% income needed is $212,170 with an average of $360,622. State median income is $63,377, with the top 5% making 5.7 times more.
– Illinois: Top 5% income needed is $250,000 with an average of $466,713. State median income is $72,563, with the top 5% making 6.4 times more.
– Indiana: Top 5% income needed is $205,154 with an average of $347,661. State median income is $61,944, with the top 5% making 5.6 times more.
– Iowa: Top 5% income needed is $210,930 with an average of $352,704. State median income is $65,429, with the top 5% making 5.4 times more.
– Kansas: Top 5% income needed is $220,993 with an average of $383,038. State median income is $64,521, with the top 5% making 5.9 times more.
– Kentucky: Top 5% income needed is $197,902 with an average of $350,411. State median income is $55,454, with the top 5% making 6.3 times more.
– Louisiana: Top 5% income needed is $210,664 with an average of $357,026. State median income is $53,571, with the top 5% making 6.7 times more.
– Maine: Top 5% income needed is $211,731 with an average of $359,776. State median income is $63,182, with the top 5% making 5.7 times more.
– Maryland: Top 5% income needed is $250,000 with an average of $503,597. State median income is $91,431, with the top 5% making 5.5 times more.
– Massachusetts: Top 5% income
Michigan:
Top 5% threshold: $222,336
Top 5% average income: $376,426
State median income: $63,202
Difference between top 5% and median: 6.0x
Minnesota:
Top 5% threshold: $250,000
Top 5% average income: $441,274
State median income: $77,706
Difference between top 5% and median: 5.7x
Mississippi:
Top 5% threshold: $179,799
Top 5% average income: $308,523
State median income: $49,111
Difference between top 5% and median: 6.3x
Missouri:
Top 5% threshold: $215,289
Top 5% average income: $371,277
State median income: $61,043
Difference between top 5% and median: 6.1x
Montana:
Top 5% threshold: $209,435
Top 5% average income: $370,234
State median income: $60,560
Difference between top 5% and median: 6.1x
Nebraska:
Top 5% threshold: $216,626
Top 5% average income: $378,679
State median income: $66,644
Difference between top 5% and median: 5.7x
Nevada:
Top 5% threshold: $227,954
Top 5% average income: $410,161
State median income: $65,686
Difference between top 5% and median: 6.2x
New Hampshire:
Top 5% threshold: $250,000
Top 5% average income: $440,829
State median income: $83,449
Difference between top 5% and median: 5.3x
New Jersey:
Top 5% threshold: $250,000
Top 5% average income: $562,886
State median income: $89,703
Difference between top 5% and median: 6.3x
New Mexico:
Top 5% threshold: $197,251
Top 5% average income: $323,568
State median income: $54,020
Difference between top 5% and median: 6.0x
New York:
Top 5% threshold: $250,000
Top 5% average income: $574,063
State median income: $75,157
Difference between top 5% and median: 7.6x
North Carolina:
Top 5% threshold: $228,071
Top 5% average income: $390,822
State median income: $60,516
Difference between top 5% and median: 6.5x
North
In this data set, we have information on household incomes in various states. Here are some details:
– Oklahoma: To be in the top 5%, you need an income of $201,605, with the average top 5% household earning $348,180. The median household income for the state is $56,956. This means the average top 5% household makes 6.0 times more than the median household.
– Oregon: To be in the top 5%, you need an income of $245,626, with the average top 5% household earning $404,468. The median household income for the state is $70,084. This means the average top 5% household makes 5.8 times more than the median household.
– Pennsylvania: To be in the top 5%, you need an income of $246,367, with the average top 5% household earning $417,872. The median household income for the state is $67,587. This means the average top 5% household makes 6.2 times more than the median household.
And so on for each state as mentioned in the original text.
Wisconsin
– Threshold for top 5%: $214,889
– Average income for top 5%: $371,015
– Median household income: $67,080
– Difference between average top 5% and median income: 5.5x
Wyoming
– Threshold for top 5%: $209,639
– Average income for top 5%: $372,110
– Median household income: $68,002
– Difference between average top 5% and median income: 5.5x
Contributors: Andrew Lisa and John Csiszar
Methodology: GOBankingRates determined the pre-tax income required to be in the top 5% of earners in each state by analyzing the Census Bureau’s 2021 American Community Survey. Data includes the upper income limit of the top 5% households, the average income of the top 5%, the average income for the state, and the difference between the average top 5% and overall average household income. Information is accurate as of May 31, 2023, and may change.
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Originally published on GOBankingRates.com: Analysis of Income Requirements for the Top 5% in Each State
