Here’s the income you need to be in the top 1% in California
New research highlights widening income wage gap in California
An analysis done by the Public Policy Institute of California shows the top 10% of earners in California make 10 times more money than those in the bottom 10% of earners. KTVU's Alex Savidge discusses the key takeaways from this research with Tess Thorman, PPIC Research Associate and study co-author.
Time and time again, we hear that the Golden State is an expensive place to live, but a new study shows just how much money Californians need to earn to be considered in the top 1% of workers in the state.
Personal finance site GoBankingRates used IRS data from 2021, the most recent available tax year data, and adjusted it to reflect 2024 dollar values in order to find the top 1% income threshold for each state.
What is the ‘top 1%?’
The "top 1%" is a term that generally refers to the wealthiest people in a population based on income or net worth.
The data from the Economic Policy Institute (EPI) shows that annual wages for the top 1% in 2021 in the U.S. reached $819,324 on average. Those considered to be in the top 0.1% earned an average of $3,312,693 annually.
Meanwhile, those in the bottom 90% earned an average income of $36,571 annually, EPI data showed.
In five states, earners need to make over $1 million annually to be in the 1% range. California comes in at number three on the list, with workers needing to earn $1,072,248 annually.
Income needed to be in top 1% in all 50 US states
- Connecticut: $1,192,947
- Massachusetts: $1,152,992
- California: $1,072,248
- Washington: $1,024,599
- New Jersey: $1,010,101
- New York: $999,747
- Colorado: $896,273
- Florida: $882,302
- Wyoming: $872,896
- New Hampshire: $839,742
- Utah: $811,929
- Illinois: $811,004
- Nevada: $804,627
- Texas: $789,003
- Virginia: $787,471
- Maryland: $767,688
- Minnesota: $755,880
- South Dakota: $752,849
- Montana: $741,182
- Idaho: $728,859
- Georgia: $725,284
- Pennsylvania: $720,778
- Arizona: $713,264
- North Dakota: $708,284
- Oregon: $707,296
- Tennessee: $702,934
- North Carolina: $688,506
- Kansas: $674,225
- Rhode Island: $673,902
- Nebraska: $651,641
- Vermont: $645,255
- Alaska: $642,707
- Delaware: $640,330
- South Carolina: $632,805
- Wisconsin: $631,993
- Hawaii: $631,383
- Michigan: $625,158
- Missouri: $610,837
- Maine: $609,173
- Louisiana: $608,143
- Ohio: $601,685
- Iowa: $591,921
- Alabama: $577,017
- Indiana: $572,403
- Oklahoma: $559,981
- Arkansas: $550,469
- Kentucky: $532,013
- New Mexico: $493,013
- Mississippi: $456,309
- West Virginia: $435,302