You’ll need to clear $330,000 in household income to be considered part of the top 5% of earners in the U.S., according to a new analysis by GOBankingRates.
But in 12 states, the bar is much higher. In these places, the average income for top-earning households exceeds $500,000 a year.
To determine how much income is needed to reach the top 5% in each state, GOBankingRates analyzed the most recent Census data from 2023. Each state was ranked by the average income of its top 5% of households.
Connecticut ranks highest with an average top 5% income of $637,673 — more than seven times the state’s median household income, according to the study. California, Massachusetts, New York and New Jersey also rank near the top, each with average top 5% incomes over $600,000.
According to the analysis, the average income among the top 5% of households exceeds $500,000 in the following states:
Connecticut: $637,673California: $619,938Massachusetts: $619,385New York: $619,178New Jersey: $616,334Washington: $573,110Colorado: $535,056Virginia: $534,776Maryland: $522,117Illinois: $514,347New Hampshire: $510,730Hawaii: $505,977
At the other end of the list, the average income of the top 5% is lowest in West Virginia, at just over $380,000 — still well above the state’s median of $57,917, but only about two-thirds of what top earners make in high-income states like Connecticut or California.
Here’s a look at the top 5% income threshold and median income for each state, in alphabetical order:
Alabama
Average household income for top 5%: $388,183Median household income: $62,027
Alaska
Average household income for top 5%: $477,622Median household income: $89,336
Arizona
Average household income for top 5%: $461,017Median household income: $76,872
Arkansas
Average household income for top 5%: $364,124Median household income: $58,773
California
Average household income for top 5%: $619,938Median household income: $96,334
Colorado
Average household income for top 5%: $535,056Median household income: $92,470
Connecticut
Average household income for top 5%: $637,673Median household income: $93,760
Delaware
Average Household Income for Top 5%: $477,949Median household income: $82,855
Florida
Average household income for top 5%: $499,872Median household income: $71,711
Georgia
Average household income for top 5%: $467,103Median household income: $74,664
Hawaii
Average household income for top 5%: $505,977Median household income: $98,317
Idaho
Average household income for top 5%: $418,188Median household income: $74,636
Illinois
Average household income for top 5%: $514,347Median household income: $81,702
Indiana
Average household income for top 5%: $393,813Median household income: $70,051
Iowa
Average household income for top 5%: $400,534Median household income: $73,147
Kansas
Average household income for top 5%: $398,469Median household income: $72,639
Kentucky
Average household income for top 5%: $372,886Median household income: $62,417
Louisiana
Average household income for top 5%: $389,605Median household income: $60,023
Maine
Average household income for top 5%: $415,677Median household income: $71,773
Maryland
Average household income for top 5%: $522,117Median household income: $101,652
Massachusetts
Average household income for top 5%: $619,385Median household income: $101,341
Michigan
Average household income for top 5%: $409,636Median household income: $71,149
Minnesota
Average household income for top 5%: $496,581Median household income: $87,556
Mississippi
Average household income for top 5%: $344,395Median household income: $54,915
Missouri
Average household income for top 5%: $410,472Median household income: $68,920
Montana
Average household income for top 5%: $420,968Median household income: $69,922
Nebraska
Average household income for top 5%: $471,960Median household income: $74,985
Nevada
Average household income for top 5%: $460,558Median household income: $75,561
New Hampshire
Average household income for top 5%: $510,730Median household income: $95,628
New Jersey
Average household income for top 5%: $616,334Median household income: $101,050
New Mexico
Average household income for top 5%: $378,797Median household income: $62,125
New York
Average household income for top 5%: $619,178Median household income: $84,578
North Carolina
Average household income for top 5%: $443,291Median household income: $69,904
North Dakota
Average household income for top 5%: $399,162Median household income: $75,949
Ohio
Average household income for top 5%: $417,374Median household income: $69,680
Oklahoma
Average household income for top 5%: $392,351Median household income: $63,603
Oregon
Average household income for top 5%: $464,386Median household income: $80,426
Pennsylvania
Average household income for top 5%: $468,603Median household income: $76,081
Rhode Island
Average household income for top 5%: $489,811Median household income: $86,372
South Carolina
Average household income for top 5%: $419,871Median household income: $66,818
South Dakota
Average household income for top 5%: $452,480Median household income: $72,421
Tennessee
Average household income for top 5%: $435,495Median household income: $67,097
Texas
Average household income for top 5%: $494,328Median household income: $76,292
Utah
Average household income for top 5%: $468,606Median household income: $91,750
Vermont
Average household income for top 5%: $453,461Median household income: $78,024
Virginia
Average household income for top 5%: $534,776Median household income: $90,974
Washington
Average household income for top 5%: $573,110Median household income: $94,952
West Virginia
Average household income for top 5%: $330,270Median household income: $57,917
Wisconsin
Average household income for top 5%: $418,095Median household income: $75,670
Wyoming
Average household income for top 5%: $400,071Median household income: $74,815
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