How Much Money Virginians Need to Earn to Be in the Top 1%

Only a handful of Americans can boast about an income that’s higher than 99% of their fellow citizens. Whether you want to be part of that small group or are a curious bystander, the earnings threshold it takes to be in the top 1% in each state puts the average American income into perspective.

SmartAsset used data from the Internal Revenue Service (IRS) and Bureau of Labor Statistics to gather how much income an American must make to be classified as a top 1% earner in their state.

One thing became glaringly obvious: The amount of money it takes to be in the top 1% club varies wildly based on the state Americans live in. Can you guess where Virginia stands?

National Average

To put the following numbers into perspective, the national average to be a top 1% earner is $652,657 of annual household income. That’s over eight times the median household income in the US, which is around $74,580.

The following is what you need to make to be in the top 1% in each state, starting with the lowest amount of money.

1: West Virginia

West Virginia has the lowest threshold to be in the top 1%, with an annual income of $367,582. Salaries in West Virginia are below the national average, so achieving this income isn’t as easy as in states towards the end of this list. The effective tax rate for 1% earners in West Virginia is 23.26%.

2: Mississippi

It takes $381,919 to be a top 1% earner in Mississippi. The Magnolia State’s effective top 1% tax rate is 23.04%.

3: New Mexico

$411,395 is what households must earn to be a top 1% earner in New Mexico. The Land of Enchantment has an effective tax rate of 23.35% for the top 1%.

4: Kentucky

To become a top 1% earner in Kentucky, households must earn a minimum of $445,294 per year. Of that, the effective top 1% tax rate is 24.14%.

5: Arkansas

Arkansas households earning $450,700 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 21.11%.

6: Louisiana

It takes $458,269 to be a top 1% earner in Louisiana. The Pelican State’s effective tax rate for the top 1% is 24.8%.

7: Oklahoma

$460,172 is what households must earn to be a top 1% earner in Oklahoma. The Sooner State has an effective top 1% tax rate of 23.68%.

8: Alabama

To become a top 1% earner in Alabama, households must earn a minimum of $470,341 per year. Of that, the effective tax rate is 23.82% for the top 1%.

9: Indiana

Indiana households earning $473,685 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.55%.

10: Iowa

It takes $483,985 to be a top 1% earner in Iowa. The Hawkeye State’s effective tax rate for the top 1% is 24.09%.

11: Hawaii

$495,263 is what households must earn to be a top 1% earner in Hawaii. The Aloha State has an effective top 1% tax rate of 24.12%.

12: Ohio

To become a top 1% earner in Ohio, households must earn a minimum of $500,253 per year. Of that, the effective tax rate is 25.09% for the top 1%.

13: Missouri

Missouri households earning $500,626 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.93%.

14: Maine

It takes $502,605 to be a top 1% earner in Maine. The Pine Tree State’s effective tax rate for the top 1% is 24.04%.

15: Michigan

$504,671 is what households must earn to be a top 1% earner in Michigan. The Wolverine State has a top 1% effective tax rate of 25.01%.

16: South Carolina

To become a top 1% earner in South Carolina, households must earn a minimum of $508,427 per year. Of that, the effective tax rate is 24.4% for the top 1%.

17: Wisconsin

Wisconsin households earning $517,321 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.9%.

18: Vermont

It takes $518,039 to be a top 1% earner in Vermont. The Green Mountain State’s top 1% effective tax rate is 23.63%.

19: Delaware

$529,928 is what households must earn to be a top 1% earner in Delaware. The First State has an effective top 1% tax rate of 25.37%.

20: Nebraska

To become a top 1% earner in Nebraska, households must earn a minimum of $535,651 per year. Of that, the effective tax rate for the top 1% is 24.1%.

21: Alaska

Alaska households earning $542,824 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 25.38%.

22: Tennessee

It takes $548,329 to be a top 1% earner in Tennessee. The Volunteer State’s top 1% effective tax rate is 25.12%.

23: Rhode Island

$548,531 is what households must earn to be a top 1% earner in Rhode Island. The Ocean State has an effective tax rate of 25.26% for the top 1%.

24: Kansas

To become a top 1% earner in Kansas, households must earn a minimum of $554,912 per year. Of that, the effective tax rate for the top 1% is 25.03%.

25: Montana

Montana households earning $559,656 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.46%.

26: North Carolina

It takes $559,762 to be a top 1% earner in North Carolina. The Tar Heel State’s effective top 1% tax rate is 25.31%.

27: Idaho

$560,040 is what households must earn to be a top 1% earner in Idaho. The Gem State has an effective top 1% tax rate of 23.17%.

28: Arizona

To become a top 1% earner in Arizona, households must earn a minimum of $564,031 per year. Of that, the effective tax rate for the top 1% is 25.22%.

29: Oregon

Oregon households earning $571,813 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 24.66%.

30: Georgia

It takes $585,397 to be a top 1% earner in Georgia. The Peach State’s effective top 1% tax rate is 25.06%.

31: North Dakota

$585,556 is what households must earn to be a top 1% earner in North Dakota. The Flickertail State has an effective tax rate of 24.76% for the top 1%.

32: Pennsylvania

To become a top 1% earner in Pennsylvania, households must earn a minimum of $588,702 per year. Of that, the effective tax rate for the top 1% earners is 24.95%.

33: South Dakota

South Dakota households earning $590,373 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 22.99%.

34: Nevada

It takes $503,751 to be a top 1% earner in Nevada. The Silver State’s effective top 1% tax rate is 25.19%.

35: Minnesota

$626,451 is what households must earn to be a top 1% earner in Minnesota. The North Star State has an effective tax rate of 25.53% for the top 1%.

36: Utah

To become a top 1% earner in Utah, households must earn a minimum of $630,544 per year. Of that, the effective top 1% tax rate is 23.77%.

37: Texas

Texas households earning $631,849 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 25.83%.

38: Maryland

It takes $633,333 to be a top 1% earner in Maryland. The Free State’s effective tax rate is 25.94% for the top 1%.

39: Virginia

$643,848 is what households must earn to be a top 1% earner in Virginia. The Old Dominion State has an effective tax rate of 26.11% for the top 1%.

40: Wyoming

To become a top 1% earner in Wyoming, households must earn a minimum of $656,118 per year. Of that, the top 1% effective tax rate is 24.79%.

41: New Hampshire

New Hampshire households earning $659,037 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 26.25%.

42: Illinois

It takes $660,810 to be a top 1% earner in Illinois. The Prarie State’s effective tax rate is 26.35% for the top 1%.

43: Florida

$694,987 is what households must earn to be a top 1% earner in Florida. The Sunshine State has an effective top 1% tax rate of 25.82%.

44: Colorado

To become a top 1% earner in Colorado, households must earn a minimum of $709,092 per year. Of that, the effective tax rate for the top 1% is 25.86%.

45: New York

New York households earning $776,662 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 28.29%.

46: Washington

It takes $804,853 to be a top 1% earner in Washington. The Evergreen State’s effective tax rate is 25.99% for the top 1%.

47: New Jersey

$817,346 is what households must earn to be a top 1% earner in New Jersey. The Garden State has an effective tax rate of 28.01% for the top 1%.

48: California

To become a top 1% earner in California, households must earn a minimum of $844,266 per year. Of that, the effective tax rate is 26.95% for the top 1%.

49: Massachusetts

Massachusetts households earning $903,401 or more annually get to call themselves part of the 1% club. The top 1% pays an average effective tax rate of 27.15%.

50: Connecticut

Connecticut has the highest barrier to entry to become a top 1% earner at $952,902. Its effective tax rate of 28.4% for the top 1% is also the highest in the nation.

The Non-State

Washington, D.C., isn’t a state. But if it were, its top 1% would be the highest earning in the nation. The average household income to be in the top 1% in Washington, D.C., is $1,013,698.

Low-Income Thresholds

Southern states have the lowest income thresholds to be in the top 1%. Six of the ten states with the lowest top 1% income thresholds are in the Southeast.

Tax Findings

Generally speaking, the higher the income threshold to be in the top 1%, the higher the effective tax. Connecticut has both the highest top 1% threshold and the highest effective tax.

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