(NEXSTAR) – It may seem like it takes a lot to be in the top 1% of earners in the US. That’s mostly true, considering that less than 10% of all US households earn more than $200,000, Office of the Census data sample. But a new analysis found that it may be easier to break into the highest income bracket than others.
After reviewing available tax data from the IRS and adjusting it with the Department of Labor’s Consumer Price Index, smart asset He calculated how much he would need to earn to be among the top earners in each state.
Overall, SmartAsset found that the income threshold ranges from about $375,000 to just over $955,000. Income thresholds for being in the top 1% in states stretching from the southern Plains to the Gulf region and east along the Rust Belt were relatively lower than thresholds in states along the coasts and toward New England.
Connecticut has the highest threshold in the US at approximately $955,000. It was the only state with a minimum threshold above $900,000, with the next closest being Massachusetts at approximately $897,000.
The states with the highest income thresholds are:
- Connecticut: $955,300
- Massachusetts: $896,900
- New Jersey: $825,965
- New York: $817,796
- California: $805,519
The state with the lowest threshold, according to SmartAsset’s findings, was West Virginia, where you need to earn about $374,700 to be in the top 1%. Following West Virginia was Mississippi with $383,100.
The states with the lowest income thresholds are:
- West Virginia: $374,712
- Mississippi: $383,128
- New Mexico: $418,970
- Arkansas: $446,276
- Kentucky: $447,300
If ranking in the top 1% of residents in your state sounds like a stretch, SmartAsset also found how much you would need to earn to rank in the top 5% of each state.
While Connecticut has the highest threshold for being in the top 1%, it has the third-highest threshold for being in the top 5% at nearly $337,000. Massachusetts has the highest rate, at $349,700. At the low end, Mississippi had the lowest threshold to be in the top 5% at $181,100.
You can see the results of the complete study here.
From one perspective, the median net worth (everything you own added up, minus any debt you owe) of an American household was $748,800 in 2019, according to the Federal Reserve. But the average is driven by a smaller number of very wealthy people toward the top of the spectrum. The median net worth, which provides a more accurate picture of a typical American home, is much lower at $121,700.
federal data It shows that the average American household earns a median income of about $70,000.
Alix Martichoux contributed to this report.