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.
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
24/7 Wall St.
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
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)
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)
[in-text-ad-2]
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)
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)
[in-text-ad]
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)
24/7 Wall St.
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)
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)
[in-text-ad-2]
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.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
