The term “top 1%” typically refers to people among the top 1% wealthiest Americans, as measured by eitherannual income or net worth. The income of those in the top 1% is many multiples above that of the average American. According to a Congressional Budget Office report, you need at least $652,657 in income per year to make the top 1%, but this varies by where you live.
While making six figures is not within the reach for many people, a financial advisor can help you build a financial plan for the future.
Income of the Top 1%
In order to be considered in the top 1% of wage earners in the U.S., you’d need to have wages of $652,657, according to information from the Congressional Budget Office, but that may change based on where you live. By comparison, the average worker in the U.S. earns just $59,384 annually.
Want to see where you fall? Try inputting your income into this calculator to see your ranking, developed by DQYDJ.com. The income of the top 1% is still growing. Research from EPI shows that wages from 2009-2019 grew 20.4%, while those in the bottom 90% rose at less than half that rate — only 8.7%.
For wider context, EPI also found that when you look at wages from 1979–2019, the top 1% grew by 160.3%, while the bottom 90% saw wages grow only 26% during the same time period.
EPI data, however, showed that earners in the top 10% make substantially less than the top 1%. Those making between 90th and 95th percentiles averaged almost six times less —$129,998 in 2019. Earners inbetween the 95th and 99th percentiles averaged just over three times less —$210,511 in 2019.
State by State
The top 1% also varies depending on what state you live in. For example, in Connecticut, you’d need to pull in $952,902 a year to fall into the top 1%. In Georgia, those numbers are significantly lower, at $585,397 annually to earn a place in the top 1%. In Texas, those numbers are $631,849, while in California it’s $844,266.
You can read our study to better understand how much you would need to earn in the state you reside in order to be considered the top 1%.
Top 1% by Net Worth and Throughout the World
According to a wealth report by Knight Frank, you would need to be worth $5.8 million or more to be in the top 1% of the United States. This puts the United States as the country with the fourth highest number in the world.
What you need to earn throughout the world to be considered part of the 1% in that country will depend on where you live. The three countries that are higher than the U.S. are Monaco, Luxembourg and Switzerland. You would need $12.88 million, $10.83 million or $8.51 million in those countries, respectively.
Bottom Line
To be in the top percentage of earners in the U.S., you’d need to pull in an average of $652,657 a year, but it could be more than that depending on what state you live in. Keep in mind that the average worker in the U.S. earns just $59,384 annually.If you’re looking to grow your wealth substantially, you might benefit from working with a financial advisor.
Tips for Investing
- Many financial advisors specialize in tuning your portfolio to boost income.Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- You can consider the wealth gap from many perspectives beyond just the raw numbers. Insightful data exists on the gap considered from the perspectives of race, generation and gender.
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FAQs
Key Takeaways. Top earners across the United States earn at least six figures, with an average income of over $160,000 for those in the top 10% in 2021. Earners in the top 1% must make $1 million per year in California, Connecticut, Massachusetts, New Jersey, and Washington.
What is considered a top 1% income? ›
The U.S. threshold for joining the top 1% stands at $787,712 in 2024, a 20% increase from the roughly $652,000 required last year, according to a new analysis of IRS data from SmartAsset.
What net worth puts you in top 1%? ›
In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.
What is the top 5% net worth and income? ›
Top 5% Threshold: This tier is a significant milestone, with a net worth requirement exceeding $3.8 million. This signifies financial accomplishment achieved through strategic planning and diligent wealth management. Top 1% Echelon: To enter this elite group, one must have a net worth exceeding $11.6 million.
What is more important net worth or income? ›
Even though it's your biggest wealth-building tool, income is only part of your financial picture. Think of it this way: Your income is how you make money, but your net worth measures your actual level of wealth, providing a much more accurate picture of your overall financial health.
What is the top 2% of income in the US? ›
In contrast, the same figure increases to about $50,000 for median workers and further escalates steeply to about $400,000 for the top 2% earners. The figure below illustrates the average earnings between ages 25 and 55 of individuals in the bottom 2%, median and top 2% of the LE distribution.
What is the top 1% net worth by age? ›
Here is the top 1% net worth by age group, courtesy of DQYDJ:
- Top 1% net worth for ages 18-24: $435,076.59.
- Top 1% net worth for ages 25-29: $606,188.36.
- Top 1% net worth for ages 30-34: $956,944.74.
- Top 1% net worth for ages 35-39: $4,034,486.45.
- Top 1% net worth for ages 40-44: $7,909,636.79.
There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more.
What net worth is wealthy? ›
In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
What percentage of retirees have $2 million dollars? ›
And if you're aiming for the $2 million club? Well, the number of those who make it is even smaller. We're talking about a sliver of a sliver – somewhere between that 3.2% and the razor-thin 0.1% who've got $5 million or more.
According to Kiplinger, by 2025, entering the top 2% of America's wealth will require a net worth of approximately $2.7 million, marking the threshold for elite economic status. Last year, the Schwab Modern Wealth Survey revealed Americans believe it takes $2.2 million to feel wealthy.
What is a respectable net worth? ›
People in their 20s and 30s should target net worth of $100,000 to $300,000. A net worth of $1 million or more should be the goal in your 40s and beyond. A seven-figure net worth is usually necessary to ensure a comfortable retirement.
What net worth is wealthy in 2024? ›
Is a net worth of $250,000 good? ›
DQYDJ places those with a $250000 net worth in the 65th percentile of all Americans*. That means 35% of my fellow citizens have at least that much or more. If you're one of the 35% or aspiring to it, this article is for you.
Is it better to have high income or high net worth? ›
Building Wealth: It's Not About High Income
Many low earners save and invest the difference and have a high net worth. The key is to have a positive cash flow, which means your income exceeds your expenses. The bigger the gap, the more you can save and invest. The more you save and invest, the more your wealth grows.
What salary is considered rich for a single person? ›
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
What is considered upper level income? ›
While there's no definitive line, households in the top 20% of earners are generally considered upper class. According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you'd typically need an income exceeding $153,000 – more than double the national median.
What percent of Americans make over 100k? ›
One estimate found that the median U.S. household income is $77,397. Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.
What is the top 1% income group? ›
The top 1 per cent earn on average Rs 5.3 million, 23 times the average Indian (Rs 0.23 million). Average incomes for the bottom 50 per cent and the middle 40 per cent stood at Rs 71,000 (0.3 times national average) and Rs 1,65,000 (0.7 times national average), respectively.
