The term “top 1%” is used a lot these days to illustrate the widening chasm between the richest Americans and nearly everyone else in the country. The data is measured either by comparing annual income from wages, rent collection, stock dividends, and capital gains, or by the total value of wealth, which includes home equity, stock portfolios, and other possessions, like second homes, trust funds, and yachts.
Either way you look at it, it’s clear that the richest Americans have for years been pulling away from the rest of the population. To a great extent, today’s wealth inequality can be traced to the robust growth in the value of stocks and real estate since the Great Recession officially ended in June 2009. Income inequality statistics, however, reveal the uneven distribution of the compensation people earn for the work they perform. Here’s a look at states where income inequality has gotten worse since 2010.
According to a widely cited and uncontested analysis of U.S. income data by UC Berkeley economist Emmanuel Saez, the average annual income for a family in the top 1% was nearly $1.46 million in 2018, or almost 40 times greater than that for families in the bottom 90%, whose incomes averaged $36,397. In 2018, the top 1% took in about 22% of all income, up from 15% in 1988, while poor or low-income households (about 40% of the total) fell from 12% to 10% over the same 30-year period.
Click here to learn how much you need to make to be in the top 1% in every state.
Click here to see our detailed methodology.
According to the Economic Policy Institute, the threshold to be in the top 1% of income earners was $737,697 in 2018, but that’s a national average. This threshold varies by state, which means a wealthy household can be comfortably in the top 1% of income earners in Alabama or Kentucky, but not make the cut in wealthier states, like Connecticut and New York. These are the states with the widest gaps between rich and poor.
Source: Sean Pavone / Getty Images
50. West Virginia
> Top 1% earn at least: $329,658 (the lowest)
> Avg. income of the top 1%: $687,843 (the lowest)
> Share of all income earned by the 1%: 11.3% (the lowest)
> Avg. income among all tax filers: $60,766 (2nd lowest)
> Poverty rate: 16.0% (6th highest)
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Source: SeanPavonePhoto / Getty Images
49. Mississippi
> Top 1% earn at least: $340,247 (2nd lowest)
> Avg. income of the top 1%: $783,065 (2nd lowest)
> Share of all income earned by the 1%: 13.6% (5th lowest)
> Avg. income among all tax filers: $57,730 (the lowest)
> Poverty rate: 19.6% (the highest)
Source: ferrantraite / Getty Images
48. New Mexico
> Top 1% earn at least: $361,865 (3rd lowest)
> Avg. income of the top 1%: $863,080 (3rd lowest)
> Share of all income earned by the 1%: 13.8% (7th lowest)
> Avg. income among all tax filers: $62,388 (3rd lowest)
> Poverty rate: 18.2% (3rd highest)
Source: DenisTangneyJr / Getty Images
47. Arkansas
> Top 1% earn at least: $387,474 (4th lowest)
> Avg. income of the top 1%: $1,420,927 (19th highest)
> Share of all income earned by the 1%: 20.7% (10th highest)
> Avg. income among all tax filers: $68,724 (6th lowest)
> Poverty rate: 16.2% (5th highest)
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Source: Davel5957 / Getty Images
46. Kentucky
> Top 1% earn at least: $388,607 (5th lowest)
> Avg. income of the top 1%: $1,079,878 (11th lowest)
> Share of all income earned by the 1%: 16.1% (22nd lowest)
> Avg. income among all tax filers: $67,225 (4th lowest)
> Poverty rate: 16.3% (4th highest)
Source: Kruck20 / Getty Images
45. Alabama
> Top 1% earn at least: $406,956 (6th lowest)
> Avg. income of the top 1%: $1,030,013 (8th lowest)
> Share of all income earned by the 1%: 15.3% (12th lowest)
> Avg. income among all tax filers: $67,340 (5th lowest)
> Poverty rate: 15.5% (7th highest)
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Source: sara_winter / Getty Images
44. Maine
> Top 1% earn at least: $408,816 (7th lowest)
> Avg. income of the top 1%: $897,119 (4th lowest)
> Share of all income earned by the 1%: 13.0% (4th lowest)
> Avg. income among all tax filers: $68,815 (8th lowest)
> Poverty rate: 10.9% (19th lowest)
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Source: Davel5957 / Getty Images
43. Indiana
> Top 1% earn at least: $411,886 (8th lowest)
> Avg. income of the top 1%: $1,048,519 (10th lowest)
> Share of all income earned by the 1%: 15.0% (11th lowest)
> Avg. income among all tax filers: $70,105 (10th lowest)
> Poverty rate: 11.9% (24th highest)
Source: pabradyphoto / Getty Images
42. Iowa
> Top 1% earn at least: $415,327 (9th lowest)
> Avg. income of the top 1%: $1,028,935 (7th lowest)
> Share of all income earned by the 1%: 13.6% (6th lowest)
> Avg. income among all tax filers: $75,681 (21st lowest)
> Poverty rate: 11.2% (20th lowest)
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Source: SeanPavonePhoto / Getty Images
41. Vermont
> Top 1% earn at least: $425,251 (10th lowest)
> Avg. income of the top 1%: $1,033,210 (9th lowest)
> Share of all income earned by the 1%: 14.2% (8th lowest)
> Avg. income among all tax filers: $72,976 (16th lowest)
> Poverty rate: 10.2% (15th lowest)
Source: Adam-Springer / Getty Images
40. Hawaii
> Top 1% earn at least: $426,856 (11th lowest)
> Avg. income of the top 1%: $958,350 (5th lowest)
> Share of all income earned by the 1%: 12.7% (3rd lowest)
> Avg. income among all tax filers: $75,182 (20th lowest)
> Poverty rate: 9.3% (6th lowest)
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Source: Ronald E Grafe / Getty Images
39. Ohio
> Top 1% earn at least: $433,124 (12th lowest)
> Avg. income of the top 1%: $1,134,613 (16th lowest)
> Share of all income earned by the 1%: 15.7% (19th lowest)
> Avg. income among all tax filers: $72,041 (13th lowest)
> Poverty rate: 13.1% (15th highest)
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Source: knowlesgallery / Getty Images
38. Idaho
> Top 1% earn at least: $435,216 (13th lowest)
> Avg. income of the top 1%: $1,173,796 (18th lowest)
> Share of all income earned by the 1%: 16.2% (23rd lowest)
> Avg. income among all tax filers: $72,537 (14th lowest)
> Poverty rate: 11.2% (21st lowest)
Source: SeanPavonePhoto / Getty Images
37. South Carolina
> Top 1% earn at least: $436,745 (14th lowest)
> Avg. income of the top 1%: $1,097,291 (12th lowest)
> Share of all income earned by the 1%: 15.7% (18th lowest)
> Avg. income among all tax filers: $69,787 (9th lowest)
> Poverty rate: 13.8% (10th highest)
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Source: peeterv / Getty Images
36. Montana
> Top 1% earn at least: $438,370 (15th lowest)
> Avg. income of the top 1%: $1,111,357 (13th lowest)
> Share of all income earned by the 1%: 15.6% (16th lowest)
> Avg. income among all tax filers: $71,334 (12th lowest)
> Poverty rate: 12.6% (20th highest)
Source: DenisTangneyJr / Getty Images
35. Oklahoma
> Top 1% earn at least: $441,767 (16th lowest)
> Avg. income of the top 1%: $1,143,066 (17th lowest)
> Share of all income earned by the 1%: 16.2% (24th lowest)
> Avg. income among all tax filers: $70,450 (11th lowest)
> Poverty rate: 15.2% (8th highest)
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Source: f11photo / Getty Images
34. Missouri
> Top 1% earn at least: $442,678 (17th lowest)
> Avg. income of the top 1%: $1,303,028 (25th lowest)
> Share of all income earned by the 1%: 17.8% (18th highest)
> Avg. income among all tax filers: $73,392 (17th lowest)
> Poverty rate: 12.9% (18th highest)
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Source: f11photo / Getty Images
33. Louisiana
> Top 1% earn at least: $443,833 (18th lowest)
> Avg. income of the top 1%: $1,128,878 (14th lowest)
> Share of all income earned by the 1%: 16.4% (24th highest)
> Avg. income among all tax filers: $68,786 (7th lowest)
> Poverty rate: 19.0% (2nd highest)
Source: Sean Pavone / Getty Images
32. Wisconsin
> Top 1% earn at least: $447,672 (19th lowest)
> Avg. income of the top 1%: $1,240,245 (24th lowest)
> Share of all income earned by the 1%: 16.0% (21st lowest)
> Avg. income among all tax filers: $77,367 (25th lowest)
> Poverty rate: 10.4% (16th lowest)
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Source: pawel.gaul / Getty Images
31. Michigan
> Top 1% earn at least: $448,401 (20th lowest)
> Avg. income of the top 1%: $1,320,318 (24th highest)
> Share of all income earned by the 1%: 17.6% (19th highest)
> Avg. income among all tax filers: $75,126 (19th lowest)
> Poverty rate: 13.0% (17th highest)
Source: Davel5957 / Getty Images
30. Nebraska
> Top 1% earn at least: $449,299 (21st lowest)
> Avg. income of the top 1%: $1,182,827 (19th lowest)
> Share of all income earned by the 1%: 15.3% (13th lowest)
> Avg. income among all tax filers: $77,140 (24th lowest)
> Poverty rate: 9.9% (10th lowest)
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Source: DenisTangneyJr / Getty Images
29. Delaware
> Top 1% earn at least: $452,273 (22nd lowest)
> Avg. income of the top 1%: $1,129,330 (15th lowest)
> Share of all income earned by the 1%: 14.4% (9th lowest)
> Avg. income among all tax filers: $78,517 (23rd highest)
> Poverty rate: 11.3% (22nd lowest)
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Source: AngelSchwai / Getty Images
28. Alaska
> Top 1% earn at least: $458,108 (23rd lowest)
> Avg. income of the top 1%: $965,635 (6th lowest)
> Share of all income earned by the 1%: 11.8% (2nd lowest)
> Avg. income among all tax filers: $81,699 (19th highest)
> Poverty rate: 10.1% (13th lowest)
Source: Sean Pavone / Getty Images
27. Tennessee
> Top 1% earn at least: $463,673 (24th lowest)
> Avg. income of the top 1%: $1,387,434 (22nd highest)
> Share of all income earned by the 1%: 19.1% (11th highest)
> Avg. income among all tax filers: $72,589 (15th lowest)
> Poverty rate: 13.9% (9th highest)
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Source: SeanPavonePhoto / Getty Images
26. Rhode Island
> Top 1% earn at least: $464,770 (25th lowest)
> Avg. income of the top 1%: $1,224,233 (21st lowest)
> Share of all income earned by the 1%: 15.6% (17th lowest)
> Avg. income among all tax filers: $78,324 (24th highest)
> Poverty rate: 10.8% (18th lowest)
Source: Davel5957 / Getty Images
25. Kansas
> Top 1% earn at least: $471,604 (25th highest)
> Avg. income of the top 1%: $1,354,991 (23rd highest)
> Share of all income earned by the 1%: 17.3% (21st highest)
> Avg. income among all tax filers: $78,323 (25th highest)
> Poverty rate: 11.4% (24th lowest)
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Source: Dreamframer / Getty Images
24. Arizona
> Top 1% earn at least: $473,863 (24th highest)
> Avg. income of the top 1%: $1,306,953 (25th highest)
> Share of all income earned by the 1%: 17.3% (22nd highest)
> Avg. income among all tax filers: $75,722 (22nd lowest)
> Poverty rate: 13.5% (13th highest)
Source: EunikaSopotnicka / Getty Images
23. South Dakota
> Top 1% earn at least: $474,817 (23rd highest)
> Avg. income of the top 1%: $1,457,539 (15th highest)
> Share of all income earned by the 1%: 18.5% (14th highest)
> Avg. income among all tax filers: $78,730 (22nd highest)
> Poverty rate: 11.9% (23rd highest)
Source: Sean Pavone / Getty Images
22. North Carolina
> Top 1% earn at least: $477,051 (22nd highest)
> Avg. income of the top 1%: $1,224,736 (22nd lowest)
> Share of all income earned by the 1%: 16.6% (23rd highest)
> Avg. income among all tax filers: $73,970 (18th lowest)
> Poverty rate: 13.6% (12th highest)
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Source: 4nadia / Getty Images
21. Oregon
> Top 1% earn at least: $487,229 (21st highest)
> Avg. income of the top 1%: $1,230,360 (23rd lowest)
> Share of all income earned by the 1%: 15.4% (14th lowest)
> Avg. income among all tax filers: $79,696 (21st highest)
> Poverty rate: 11.4% (23rd lowest)
Source: Adventure_Photo / Getty Images
20. Utah
> Top 1% earn at least: $497,825 (20th highest)
> Avg. income of the top 1%: $1,506,364 (13th highest)
> Share of all income earned by the 1%: 18.2% (17th highest)
> Avg. income among all tax filers: $82,677 (18th highest)
> Poverty rate: 8.9% (2nd lowest)
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Source: 4kodiak / Getty Images
19. Nevada
> Top 1% earn at least: $508,331 (19th highest)
> Avg. income of the top 1%: $2,251,301 (7th highest)
> Share of all income earned by the 1%: 27.1% (3rd highest)
> Avg. income among all tax filers: $83,048 (16th highest)
> Poverty rate: 12.5% (21st highest)
Source: DenisTangneyJr / Getty Images
18. North Dakota
> Top 1% earn at least: $509,096 (18th highest)
> Avg. income of the top 1%: $1,209,835 (20th lowest)
> Share of all income earned by the 1%: 14.5% (10th lowest)
> Avg. income among all tax filers: $83,475 (14th highest)
> Poverty rate: 10.6% (17th lowest)
Source: f11photo / Getty Images
17. Pennsylvania
> Top 1% earn at least: $509,824 (17th highest)
> Avg. income of the top 1%: $1,414,588 (20th highest)
> Share of all income earned by the 1%: 17.4% (20th highest)
> Avg. income among all tax filers: $81,301 (20th highest)
> Poverty rate: 12.0% (22nd highest)
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Source: Sean Pavone / Getty Images
16. Georgia
> Top 1% earn at least: $511,835 (16th highest)
> Avg. income of the top 1%: $1,428,946 (18th highest)
> Share of all income earned by the 1%: 18.7% (12th highest)
> Avg. income among all tax filers: $76,260 (23rd lowest)
> Poverty rate: 13.3% (14th highest)
Source: DenisTangneyJr / Getty Images
15. New Hampshire
> Top 1% earn at least: $535,352 (15th highest)
> Avg. income of the top 1%: $1,505,620 (14th highest)
> Share of all income earned by the 1%: 16.4% (25th lowest)
> Avg. income among all tax filers: $91,841 (9th highest)
> Poverty rate: 7.3% (the lowest)
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Source: culbertson / Getty Images
14. Minnesota
> Top 1% earn at least: $541,046 (14th highest)
> Avg. income of the top 1%: $1,448,874 (17th highest)
> Share of all income earned by the 1%: 16.4% (25th highest)
> Avg. income among all tax filers: $88,326 (13th highest)
> Poverty rate: 9.0% (3rd lowest)
Source: SeanXu / Getty Images
13. Wyoming
> Top 1% earn at least: $544,357 (13th highest)
> Avg. income of the top 1%: $2,314,057 (4th highest)
> Share of all income earned by the 1%: 25.1% (5th highest)
> Avg. income among all tax filers: $92,060 (8th highest)
> Poverty rate: 10.1% (14th lowest)
Source: Sean Pavone / Getty Images
12. Virginia
> Top 1% earn at least: $550,463 (12th highest)
> Avg. income of the top 1%: $1,455,687 (16th highest)
> Share of all income earned by the 1%: 15.9% (20th lowest)
> Avg. income among all tax filers: $91,446 (10th highest)
> Poverty rate: 9.9% (11th lowest)
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Source: Davel5957 / Getty Images
11. Maryland
> Top 1% earn at least: $553,523 (11th highest)
> Avg. income of the top 1%: $1,410,065 (21st highest)
> Share of all income earned by the 1%: 15.5% (15th lowest)
> Avg. income among all tax filers: $91,161 (11th highest)
> Poverty rate: 9.0% (4th lowest)
Source: SeanPavonePhoto / Getty Images
10. Texas
> Top 1% earn at least: $559,433 (10th highest)
> Avg. income of the top 1%: $1,733,335 (11th highest)
> Share of all income earned by the 1%: 21.0% (8th highest)
> Avg. income among all tax filers: $82,683 (17th highest)
> Poverty rate: 13.6% (11th highest)
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Source: Sean Pavone / Getty Images
9. Florida
> Top 1% earn at least: $587,128 (9th highest)
> Avg. income of the top 1%: $2,257,765 (6th highest)
> Share of all income earned by the 1%: 27.2% (2nd highest)
> Avg. income among all tax filers: $83,110 (15th highest)
> Poverty rate: 12.7% (19th highest)
Source: lhongfoto / Getty Images
8. Illinois
> Top 1% earn at least: $590,511 (8th highest)
> Avg. income of the top 1%: $1,899,007 (9th highest)
> Share of all income earned by the 1%: 20.9% (9th highest)
> Avg. income among all tax filers: $90,693 (12th highest)
> Poverty rate: 11.5% (25th lowest)
Source: Ron and Patty Thomas / Getty Images
7. Colorado
> Top 1% earn at least: $595,169 (7th highest)
> Avg. income of the top 1%: $1,696,104 (12th highest)
> Share of all income earned by the 1%: 18.3% (16th highest)
> Avg. income among all tax filers: $92,557 (7th highest)
> Poverty rate: 9.3% (7th lowest)
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Source: thyegn / iStock via Getty Images
6. Washington
> Top 1% earn at least: $644,918 (6th highest)
> Avg. income of the top 1%: $1,856,727 (10th highest)
> Share of all income earned by the 1%: 18.6% (13th highest)
> Avg. income among all tax filers: $99,568 (6th highest)
> Poverty rate: 9.8% (9th lowest)
Source: choness / Getty Images
5. California
> Top 1% earn at least: $701,571 (5th highest)
> Avg. income of the top 1%: $2,307,445 (5th highest)
> Share of all income earned by the 1%: 23.1% (7th highest)
> Avg. income among all tax filers: $99,967 (5th highest)
> Poverty rate: 11.8% (25th highest)
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Source: SeanPavonePhoto / Getty Images
4. New Jersey
> Top 1% earn at least: $715,830 (4th highest)
> Avg. income of the top 1%: $1,912,855 (8th highest)
> Share of all income earned by the 1%: 18.5% (15th highest)
> Avg. income among all tax filers: $103,590 (3rd highest)
> Poverty rate: 9.2% (5th lowest)
Source: TomasSereda / Getty Images
3. New York
> Top 1% earn at least: $731,516 (3rd highest)
> Avg. income of the top 1%: $2,823,677 (2nd highest)
> Share of all income earned by the 1%: 28.1% (the highest)
> Avg. income among all tax filers: $100,593 (4th highest)
> Poverty rate: 13.0% (16th highest)
Source: SeanPavonePhoto / Getty Images
2. Massachusetts
> Top 1% earn at least: $762,702 (2nd highest)
> Avg. income of the top 1%: $2,617,881 (3rd highest)
> Share of all income earned by the 1%: 23.3% (6th highest)
> Avg. income among all tax filers: $112,207 (2nd highest)
> Poverty rate: 9.4% (8th lowest)
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Source: SeanPavonePhoto / Getty Images
1. Connecticut
> Top 1% earn at least: $843,875 (the highest)
> Avg. income of the top 1%: $2,927,402 (the highest)
> Share of all income earned by the 1%: 25.7% (4th highest)
> Avg. income among all tax filers: $114,124 (the highest)
> Poverty rate: 10.0% (12th lowest)
Methodology
To determine how much you need to make to be in the 1% in every state, 24/7 Wall St. reviewed adjusted gross income percentile data for the 2018 tax year from the Internal Revenue Service. We also calculated the average incomes and average income taxes for earners in the top 1% using total adjusted gross income, total federal income taxes, and number of returns data from the IRS. All income data was adjusted for inflation using consumer price index data for 2018 and 2020 from the U.S. Bureau of Labor Statistics. Poverty rates came from the U.S. Census Bureau’s 2019 American Community Survey.
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