Special Report

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

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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.

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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.

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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.

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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.

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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.

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