The concept of wealth and affluence can be quite subjective, varying significantly from one individual to another. What one person perceives as affluent might not be the same for another. Furthermore, the purchasing power of money can differ drastically across states.
A practical approach to defining “wealthy” is by examining the top 5% income earners in each state. However, it’s important to note that the threshold to join this exclusive 5% club can be significantly more challenging in some states than others.
To establish what it takes to be considered wealthy, we utilized data from the U.S. Census Bureau’s 2021 American Community Survey. This data allowed us to compare the average income in each state with that of its top 5% earners.
This article provides an overview of the income you need to be considered “wealthy” in each state, and how much more you would earn compared to the average individual once you reach this status.
This article presents a list of states, arranged from the highest to the lowest average household income.
How Much It Costs To Live Comfortably in 15 of the best East Coast Cities
District of Columbia
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 670,768 Average State Income 93,547 Top 5% Income as Multiple of Average 7.2
New York
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 631,695 Median State Income 76,608 Top 5% Income as Multiple of Median 8.2
Connecticut
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 602,707 Median State Income 83,572 Top 5% Income as Multiple of Median 7.2
Massachusetts
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 558,616 Median State Income 89,026 Top 5% Income as Multiple of Median 6.3
New Jersey
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 548,720 Median State Income 85,751 Top 5% Income as Multiple of Median 6.4
California
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 555,007 Median State Income 84,097 Top 5% Income as Multiple of Median 6.6
Washington
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 558,616 Median State Income 89,026 Top 5% Income as Multiple of Median 6.3
Maryland
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 503,597 Median State Income 91,431 Top 5% Income as Multiple of Median 5.5
Illinois
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 466,713 Median State Income 72,563 Top 5% Income as Multiple of Median 6.4
Virginia
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 503,597 Median State Income 91,431 Top 5% Income as Multiple of Median 5.5
Colorado
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 466,181 Median State Income 80,184 Top 5% Income as Multiple of Median 5.8
Wyoming
Income Category Amount ($) Top 5% Threshold 210,000 Average Income of Top 5% 355,264 Median State Income 56,276 Top 5% Income as Multiple of Median 6.3
Hawaii
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 459,305 Median State Income 88,005 Top 5% Income as Multiple of Median 5.2
Texas
Income Category Amount ($) Top 5% Threshold 235,688 Average Income of Top 5% 394,383 Median State Income 68,559 Top 5% Income as Multiple of Median 5.8
Florida
Income Category Amount ($) Top 5% Threshold 236,080 Average Income of Top 5% 431,870 Average State Income 61,777 Top 5% Income as Multiple of Average 7.0
Minnesota
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 441,274 Median State Income 77,706 Top 5% Income as Multiple of Median 5.7
Rhode Island
Income Category Amount ($) Top 5% Threshold 235,688 Average Income of Top 5% 394,383 Median State Income 68,559 Top 5% Income as Multiple of Median 5.8
New Hampshire
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 429,882 Median State Income 81,346 Top 5% Income as Multiple of Median 5.3
Georgia
Income Category Amount ($) Top 5% Threshold 245,320 Average Income of Top 5% 422,018 Average State Income 65,030 Top 5% Income as Multiple of Average 6.5
Oregon
Income Category Amount ($) Top 5% Threshold 230,000 Average Income of Top 5% 395,264 Median State Income 66,276 Top 5% Income as Multiple of Median 6.0
Delaware
Income Category Amount ($) Top 5% Threshold 245,145 Average Income of Top 5% 420,859 Average State Income 72,724 Top 5% Income as Multiple of Average 5.8
Pennsylvania
Income Category Amount ($) Top 5% Threshold 225,688 Average Income of Top 5% 384,383 Median State Income 64,559 Top 5% Income as Multiple of Median 6.0
Arizona
Income Category Amount ($) Top 5% Threshold 233,908 Average Income of Top 5% 395,620 Average State Income 65,913 Top 5% Income as Multiple of Average 6.0
Vermont
Income Category Amount ($) Top 5% Threshold 225,688 Average Income of Top 5% 384,383 Median State Income 64,559 Top 5% Income as Multiple of Median 6.0
Alaska
Income Category Amount ($) Top 5% Threshold 250,000 Average Income of Top 5% 394,694 Median State Income 80,287 Top 5% Income as Multiple of Median 4.9
Utah
Income Category Amount ($) Top 5% Threshold 230,000 Average Income of Top 5% 395,264 Median State Income 70,276 Top 5% Income as Multiple of Median 5.6
Nevada
Income Category Amount ($) Top 5% Threshold 230,000 Average Income of Top 5% 393,264 Median State Income 63,276 Top 5% Income as Multiple of Median 6.2
North Dakota
Income Category Amount ($) Top 5% Threshold 228,688 Average Income of Top 5% 384,383 Median State Income 64,559 Top 5% Income as Multiple of Median 6.0
North Carolina
Income Category Amount ($) Top 5% Threshold 230,000 Average Income of Top 5% 395,264 Median State Income 60,276 Top 5% Income as Multiple of Median 6.6
Kansas
Income Category Amount ($) Top 5% Threshold 220,993 Average Income of Top 5% 383,038 Median State Income 64,521 Top 5% Income as Multiple of Median 5.9
Nebraska
Income Category Amount ($) Top 5% Threshold 221,179 Average Income of Top 5% 381,758 Median State Income 67,575 Top 5% Income as Multiple of Median 5.7
Michigan
Income Category Amount ($) Top 5% Threshold 222,336 Average Income of Top 5% 376,426 Median State Income 63,202 Top 5% Income as Multiple of Median 6.0
Wisconsin
Income Category Amount ($) Top 5% Threshold 225,688 Average Income of Top 5% 384,383 Median State Income 64,559 Top 5% Income as Multiple of Median 6.0
Wyoming
Income Category Amount ($) Top 5% Threshold 210,000 Average Income of Top 5% 355,264 Median State Income 56,276 Top 5% Income as Multiple of Median 6.3
South Carolina
Income Category Amount ($) Top 5% Threshold 215,000 Average Income of Top 5% 365,264 Median State Income 57,276 Top 5% Income as Multiple of Median 6.4
Missouri
Income Category Amount ($) Top 5% Threshold 215,882 Average Income of Top 5% 371,741 Median State Income 62,605 Top 5% Income as Multiple of Median 5.9
Ohio
Income Category Amount ($) Top 5% Threshold 215,688 Average Income of Top 5% 364,383 Median State Income 58,559 Top 5% Income as Multiple of Median 6.2
Tennessee
Income Category Amount ($) Top 5% Threshold 225,688 Average Income of Top 5% 384,383 Median State Income 64,559 Top 5% Income as Multiple of Median 6.0
Oklahoma
Income Category Amount ($) Top 5% Threshold 210,000 Average Income of Top 5% 365,264 Median State Income 57,276 Top 5% Income as Multiple of Median 6.4
Idaho
Income Category Amount ($) Top 5% Threshold 212,170 Average Income of Top 5% 360,622 Median State Income 63,377 Top 5% Income as Multiple of Median 5.7
Maine
Income Category Amount ($) Top 5% Threshold 211,731 Average Income of Top 5% 359,776 Median State Income 63,182 Top 5% Income as Multiple of Median 5.7
Louisiana
Income Category Amount ($) Top 5% Threshold 210,664 Average Income of Top 5% 357,026 Median State Income 53,571 Top 5% Income as Multiple of Median 6.7
New Mexico
Income Category Amount ($) Top 5% Threshold 206,688 Average Income of Top 5% 354,383 Median State Income 52,559 Top 5% Income as Multiple of Median 6.7
Montana
Income Category Amount ($) Top 5% Threshold 206,839 Average Income of Top 5% 354,579 Median State Income 60,982 Top 5% Income as Multiple of Median 5.8
Iowa
Income Category Amount ($) Top 5% Threshold 210,930 Average Income of Top 5% 352,704 Median State Income 65,429 Top 5% Income as Multiple of Median 5.4
Kentucky
Income Category Amount ($) Top 5% Threshold 197,902 Average Income of Top 5% 350,411 Median State Income 55,454 Top 5% Income as Multiple of Median 6.3
Indiana
Income Category Amount ($) Top 5% Threshold 205,154 Average Income of Top 5% 347,661 Median State Income 61,944 Top 5% Income as Multiple of Median 5.6
Arkansas
Income Category Amount ($) Top 5% Threshold 193,240 Average Income of Top 5% 344,470 Average State Income 52,123 Top 5% Income as Multiple of Average 6.6
West Virginia
Income Category Amount ($) Top 5% Threshold 195,000 Average Income of Top 5% 335,264 Median State Income 52,276 Top 5% Income as Multiple of Median 6.4
Alabama
Income Category Amount ($) Top 5% Threshold 202,158 Average Income of Top 5% 336,788 Median State Income 54,943 Top 5% Income as Multiple of Median 6.1
Mississippi
Income Category Amount ($) Top 5% Threshold 191,878 Average Income of Top 5% 334,484 Median State Income 47,559 Top 5% Income as Multiple of Median 7.0
Methodology: To determine the pre-tax income required for a household to be within the top 5% of highest earners in each state, we analyzed data from the Census Bureau’s 2021 American Community Survey (ACS). The analysis involved extracting the 2021 ACS data on “Household Income Quintile Upper Limits” to identify the lower income limit of the top 5% of households in each state. Additional data compiled includes the average household income of the top 5%, the average household income for the entire state, and the comparison of how much more the average top 5% household earns than the overall average household in each state. The data, accurate as of August 1, 2023, is subject to change.
