Personal finance site SmartAsset analyzed data from the Internal Revenue Service (IRS) and the Bureau of Labor Statistics (BLS) to determine the minimum income required to be among the top 1% earners in each state.
According to the report, American wealth is increasingly concentrated at the top of the economic ladder, with the top 1% of families owning more than a third of the total wealth in the US.up from 27% in 1989. Meanwhile, the bottom half of all households control just 2% of total wealth.
SmartAsset notes that the ultra-rich are those households that earn $652,657 on average and are considered to be in the top 1%, earning more than eight times more than the median household, which is around $75,000.
The site notes that the 1% threshold varies from state to state, and that it ranges from $368,000 to $953,000 dollars.
Key results of the analysis:
· Connecticut has the highest floor, where you need to earn $952,902 to be in the top 1%, more than any other state by 2023.
· Massachusetts ($903,401) and California ($844,266) have the second and third highest thresholds to enter the top 1%, respectively.
· The top 1% in Washington DC earn more than $1 million. If the nation’s capital were a state, it would rank first overall in the study. That’s because households aren’t considered part of the top 1% if they don’t earn at least $1,013,698 in 2023.
· The southern states have the lowest income thresholds. For example, West Virginians need just $367,582 to reach the top 1%, the lowest income in the entire study.
· 6 of the 10 states with the lowest income thresholds They are in the southeast.
· Connecticut has the highest effective tax rate for top earners (28.4%). On the other hand, Arkansas taxes the top 1% at an average rate of just 21.11%, less than any other state.
Income thresholds vary in the four largest states in the United States. It takes $844,266 and $776,662 to be in the top 1% in California and New York, respectively. But households in Florida and Texas need to earn much less to be considered in the top 1%: $694,987 and $631,849, respectively.
States with the highest family income to be in the richest 1%
State: (1) Connecticut
Income to be in the 1%: $952,902
Tax rate: 28.40%
State: (2) Massachusetts
Income to be in the 1%: $903,401
Tax rate: 27.15%
State: (3) California
Income to be in the 1%: $844,266
Tax rate: 26.95%
State: (4) New Jersey
Income to be in the 1%: $817,346
Tax rate: 28.01%
State: (5) Washington
Income to be in the 1%: $804,853
Tax rate: 25.99%
State: (6) New York
Income to be in the 1%: $776,662
Tax rate: 28.29%
State: (7) Colorado
Income to be in the 1%: $709,092
Tax rate: 25.86%
State: (8) Florida
Income to be in the 1%: $694,987
Tax rate: 25.82%
State: (9) Illinois
Income to be in the 1%: $660,810
Tax rate: 26.35%
State: (10) New Hampshire
Income to be in the 1%: $659,037
Tax rate: 26.25%
To consult the complete list, enter here.
Keep reading:
· The most powerful billionaires of each state in 2023: Find out who leads the list!
· New report reports that the billionaire population has shrunk by 2022
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2023-07-20 14:29:30
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