Here's what you must earn to be in the top 1% of earners in every state.

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Hello, Wealth Builders! Have you ever wondered about the financial landscape of the top 1% in the United States? According to a study completed earlier this year by Smart Asset, households must earn $652,657 or more annually to be a part of the elusive 1%. The interesting twist? The 1% threshold isn't a one-size-fits-all deal; it varies from as high as $953,000 to as low as $368,000 across states. Smart Asset compiled this data using the IRS and the Bureau of Labor Statistics information to determine the minimum required in each state. Curious about the specifics? Explore the entire list below.

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KEY TAKEAWAYS

Regional Disparities in Top 1% Income Thresholds:

Connecticut has the loftiest entry point into the top 1%, requiring a substantial income of $952,902. In 2023, Massachusetts and California follow closely with thresholds of $903,401 and $844,266, respectively. These Northeastern states set a high bar for reaching the upper echelons of income.

On the other end of the spectrum, the nation's capital, Washington D.C., boasts the highest top 1% income threshold, surpassing $1 million. If treated as a state, it would lead the rankings, mandating a minimum income of $1,013,698 for households to be recognized as part of the top 1%.

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Southern States: Lower Entry Points into the Top 1%:

In contrast, many Southern states present considerably lower income thresholds for inclusion in the top 1%. West Virginia emerges as the state with the least stringent requirements, where residents need just $367,582 to be part of the elite 1%. Notably, six out of the 10 states with the lowest income thresholds are in the Southeastern region.

Taxation Disparities Across States:

Regarding tax rates for the top 1%, Connecticut imposes the highest effective tax rate at 28.4%, creating a significant financial burden for high earners. Conversely, Arkansas stands out for its lower tax rate, with the top 1% facing an average rate of just 21.11%, the lowest among all states.

Income Threshold Variations in Major States:

The four most populous states in America—California, New York, Florida, and Texas—display notable differences in the top 1% income thresholds. California and New York set high bars at $844,266 and $776,662, respectively. In contrast, Florida and Texas offer relatively lower thresholds, requiring incomes of $694,987 and $631,849, respectively, for households to be classified among the top 1%.

As we conclude our deep dive into the wealth landscapes across states, it's clear that understanding the nuances of financial success is a key to unlocking doors. If you're hungry for more insights, conversations, and practical wisdom on building wealth, we invite you to subscribe and tune in to the Black Wealth Renaissance Podcast. Join a community of like-minded Wealth Builders who share their journeys, challenges, and triumphs on the road to financial prosperity. Uncover actionable strategies, gain valuable perspectives, and empower yourself with the knowledge needed to thrive in your wealth-building journey. Don't miss out – subscribe today and embark on a transformative exploration of black wealth with the Black Wealth Renaissance Podcast. Happy listening!