Special Report

How Much You Need to Make to Be in the 1% in Every State

Source: Ron and Patty Thomas / iStock via Getty Images

1. Alabama
> Top 1% earn at least: $390,066 (7th lowest)
> Avg. income of the top 1%: $1,011,643 (9th lowest)
> Share of all income earned by the 1%: 15.5% (19th lowest)
> Avg. income among all tax filers: $65,249 (5th lowest)

In Alabama, tax filers earning $390,066 rank in the top 1% of all earners, the seventh lowest threshold of any state. Filers in the 1% in Alabama earn an average of $1.0 million and pay $265,363 in federal income taxes, the ninth and 10th smallest such figures of any state’s top 1% of earners.

Source: Joesboy / iStock Unreleased via Getty Images

2. Alaska
> Top 1% earn at least: $433,070 (21st lowest)
> Avg. income of the top 1%: $934,419 (6th lowest)
> Share of all income earned by the 1%: 11.9% (2nd lowest)
> Avg. income among all tax filers: $78,641 (18th highest)

In Alaska, residents need to earn at least $433,070 to rank among the top 1% of earners. Among the wealthiest 1% of taxpayers in the state, the average income is $934,419 — or about $855,000 more than the average income among all taxpayers.

Source: Markanja / iStock via Getty Images

3. Arizona
> Top 1% earn at least: $448,795 (25th lowest)
> Avg. income of the top 1%: $1,235,517 (22nd highest)
> Share of all income earned by the 1%: 17.0% (17th highest)
> Avg. income among all tax filers: $72,696 (20th lowest)

The average income across all taxpayers in Arizona is $72,696. Among the top 1% of earners in the state — those earning at least $448,795 — the average income is $1.2 million. The roughly 28,000 taxpayers who comprise the state’s 1% earned about 17% of all money made in the state annually.

Source: Sean_Gao / iStock via Getty Images

4. Arkansas
> Top 1% earn at least: $377,895 (5th lowest)
> Avg. income of the top 1%: $1,483,488 (13th highest)
> Share of all income earned by the 1%: 21.9% (9th highest)
> Avg. income among all tax filers: $67,841 (10th lowest)

In Arkansas, the income threshold for the top 1% is just $377,895, about $161,000 less than the national 1% threshold and the fifth lowest of any state. While the threshold for the top 1% is lower in Arkansas than in the majority of states, the average filer in the 1% earns $1.5 million — the 13th highest average income of the 1% of any state.

Source: dszc / iStock via Getty Images

5. California
> Top 1% earn at least: $659,503 (5th highest)
> Avg. income of the top 1%: $2,195,775 (6th highest)
> Share of all income earned by the 1%: 23.0% (7th highest)
> Avg. income among all tax filers: $95,494 (5th highest)

With an average statewide income of about $95,500, California is one of the wealthiest states in the country. The high average income in the state is due in part to a high concentration of high-wealth individuals. The threshold for being among California’s 1% is $659,503, higher than in all but four other states. Among the top 1% of earners in the state, the average annual income is $2.2 million.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.