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Report: Gen Z can't hold onto money
A new report details results showing Gen Z can't hold onto money. LiveNOW from FOX's Mike Pache takes a deeper look.
null - What it takes to be considered a top 1% income earner can differ significantly from state to state. And, in some states, it can take more than $1 million in income to be considered a top earner, according to a new analysis.
SmartAsset ranked states based on the minimum pre-tax income needed to be considered a top 1% earner, based on the latest IRS tax return data.
The company found that it took over $1 million per year in income to be in the top 1% in three states.
Connecticut had the highest threshold to reach the top 1% of earners at $1.15 million. Massachusetts followed closely behind at $1.11 million, and California residents had to similarly earn $1.04 million or more to be considered a top earner.
Nationwide, SmartAsset found it took $787,712 to be in the top 1% of earners. To be in the top 5% of American earners, a person needed to earn at least $290,185 annually.
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This data backs up a similar study by GoBankRates published earlier this month, which found that Connecticut, Massachusetts and California required at least $1 million in income to be considered in the 1%. However, GoBankRates also said Washington and New Jersey required at least $1 million too.
Income Needed to Be in the Top 1% in all 50 states
What is the ‘top 1%?’
The "top 1%" is a term that generally refers to the wealthiest people in a population based on income or net worth.
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The data from the Economic Policy Institute (EPI) shows that annual wages for the top 1% in 2021 in the U.S. reached $819,324 on average. Those considered to be in the top 0.1% earned an average of $3,312,693 annually.
Meanwhile, those in the bottom 90% earned an average income of $36,571 annually, EPI data showed.
This story was reported from Los Angeles. Kelly Hayes contributed.