Ever wonder what it takes to be at the top?
SmartAsset analyzed IRS data to figure out what the top 1% of earners make in every state, based on adjusted gross income (AGI) and accounting for inflation.
Nationwide, it takes an AGI of at least $652,657 to be part of the 1%. To see how your AGI compares, check line 11 of your 2022 tax return.
Following is how much the top 1% of earners make in every state, starting with the top 10.
10. New Hampshire
Income threshold for the top 1% of earners in this state: $659,037
Effective tax rate paid by the top 1% of earners in this state: 26.25%
The top 1% of earners in New Hampshire make more than nine times as much as the U.S. median household income of about $71,000. And they’ll gradually get to keep more of it in the next few years, thanks to a phased out state tax on dividends and interest.
9. Illinois
Income threshold for the top 1% of earners in this state: $660,810
Effective tax rate paid by the top 1% of earners in this state: 26.35%
Illinois is one of “9 States That Want To Tax the Wealthy in 2023,” although it hasn’t come to pass yet. If it does, the state would have up to $500 million a year to spend on after-school programs and health care among other things, supporters say.
8. Florida
Income threshold for the top 1% of earners in this state: $694,987
Effective tax rate paid by the top 1% of earners in this state: 25.82%
Florida has no state income tax or estate tax, which are two of many reasons it’s an attractive retirement destination.
7. Colorado
Income threshold for the top 1% of earners in this state: $709,092
Effective tax rate paid by the top 1% of earners in this state: 25.86%
Coloradans pay a flat state income tax rate of 4.4%, and some areas collect local income taxes. Between state and local income taxes, Coloradans pay about $1,763 per capita, according to the Tax Foundation.
6. New York
Income threshold for the top 1% of earners in this state: $776,662
Effective tax rate paid by the top 1% of earners in this state: 28.29%
New York lowered personal income tax for 2023. People who moved out of state during the pandemic also may have cost the state as much as 20% of state tax revenue compared to last fiscal year.
5. Washington
Income threshold for the top 1% of earners in this state: $804,853
Effective tax rate paid by the top 1% of earners in this state: 25.99%
A 7% capital gains tax adopted in 2021 brought in around $848 million this fiscal year for Washington.
4. New Jersey
Income threshold for the top 1% of earners in this state: $817,346
Effective tax rate paid by the top 1% of earners in this state: 28.01%
New Jersey has the highest property taxes in the country, but is lowering them for seniors with incomes of less than $500,000. That could mean up to $6,500 in savings per eligible household by 2026.
3. California
Income threshold for the top 1% of earners in this state: $844,266
Effective tax rate paid by the top 1% of earners in this state: 26.95%
California is another state considering a wealth tax this year. It would amount to 1.5% extra for billionaires.
2. Massachusetts
Income threshold for the top 1% of earners in this state: $903,401
Effective tax rate paid by the top 1% of earners in this state: 27.15%
Massachusetts is the rare state that raised income taxes in 2023. The new 4% surtax targets taxpayers earning more than $1 million a year — which affects less than the top 1% of earners, according to SmartAsset’s analysis.
1. Connecticut
Income threshold for the top 1% of earners in this state: $952,902
Effective tax rate paid by the top 1% of earners in this state: 28.4%
Connecticut is considering multiple new tax proposals on the wealthy, including higher property taxes, corporate business taxes and a surcharge on investment income for those making more than $500,000 a year.
Other states
Following is the threshold to be in the top 1% of income earners in the rest of the country, in descending order:
- Wyoming: $656,118
- Virginia: $643,848
- Maryland: $633,333
- Texas: $631,849
- Utah: $630,544
- Minnesota: $626,451
- Nevada: $603,751
- South Dakota: $590,373
- Pennsylvania: $588,702
- North Dakota: $585,556
- Georgia: $585,397
- Oregon: $571,813
- Arizona: $564,031
- Idaho: $560,040
- North Carolina: $559,762
- Montana: $559,656
- Kansas: $554,912
- Rhode Island: $548,531
- Tennessee: $548,329
- Alaska: $542,824
- Nebraska: $535,651
- Delaware: $529,928
- Vermont: $518,039
- Wisconsin: $517,321
- South Carolina: $508,427
- Michigan: $504,671
- Maine: $502,605
- Missouri: $500,626
- Ohio: $500,253
- Hawaii: $495,263
- Iowa: $483,985
- Indiana: $473,685
- Alabama: $470,341
- Oklahoma: $460,172
- Louisiana: $458,269
- Arkansas: $450,700
- Kentucky: $445,294
- New Mexico: $411,395
- Mississippi: $381,919
- West Virginia: $367,582
