What it takes to be in the top 1 percent in the US varies significantly from $953,000 to $368,000, depending on which state you live in.
Connecticut has the highest threshold for being in the top 1 percent of earners, at $952,902, according to new research from smart asset.
Meanwhile, households in Virginia need the lowest income to count among the richest 1 percent in the state, at $367,000, nearly three times less than those in Connecticut.
If Washington DC were a state, the research found, it would rank at the top of the list, as households are not considered among the wealthiest unless they earn at least $1,013,698 a year in the nation’s capital.
It comes after it was revealed earlier this year that every state is now home to at least one billionaire, as the collective wealth of America’s richest has risen to $1.5 trillion.
If Washington DC were a state, the research found, it would rank at the top of the list, as households need to earn a whopping $1,013,698 a year to be in the top 1 percent of the state.
Nationwide, households that earn more than $652,657 a year are considered to be in the top 1 percent.
This is more than eight times the median household income, which is around $75,000 a year.
After Connecticut, Massachusetts and California have the second and third highest thresholds to qualify for the richest 1 percent: $903,401 and $844,266 respectively.
At the other end of the spectrum, southern states tend to have lower income thresholds, according to the data.
Six of the 10 states with the lowest income thresholds are in the Southeast: West Virginia, Mississippi, Kentucky, Arkansas, Louisiana and Alabama.
Incomes that qualify to be considered among the wealthiest residents in the four largest states also vary significantly.
It takes $844,266 and $776,662 to be in the top 1 percent in California and New York, respectively.
But households in Florida and Texas need to earn much less to be considered among the richest: $694,987 and $631,849.
The amount residents have to pay in taxes also varies by state. Connecticut has the highest effective tax rate for top earners at 28.4 percent, while Arkansas residents pay an average rate of 21.11 percent, the lowest of any state.
According to a report from the Congressional Budget Office last year, the top 1 percent own more than a third of the wealth in the US, up from 27 percent in 1989.
Meanwhile, the bottom half of households control just 2 percent of total wealth in the US.
It comes after an investigation earlier this year revealed that Americans hoping to rank among the richest in the country would have to be value of at least $5.1 million.
Every state is now home to at least one billionaire, as the collective wealth of America’s richest has grown to $1.5 trillion.
Research earlier this year revealed that Americans hoping to rank among the country’s richest should be worth at least $5.1 million.
According to Knight Frank’s wealth report released in May, the US has the fifth-highest fortune required to be part of the world’s richest 1 percent, behind Monaco, Switzerland, Australia and New Zealand.
The combined net worth of America’s richest has nearly doubled from $875 billion in 2019, a record at the time that now pales in comparison to the latest statistics.
analysis by Forbes found that 47 of the 50 states had a billionaire living there, up from 44 in 2019.
Alaska, Delaware and West Virginia were the only three states without a single resident whose wealth is in the nine figures.
The study also found that of the 775 billionaires living in the US, more than 60 percent, or 179, resided in California. The richest among them is the co-founder of Google, Larry Page, who has a fortune of 105,000 million dollars.