TAMPA, Fla. (WFLA) — The top 1% may seem out of reach for most Americans, but joining the nation’s wealthiest may be slightly more attainable in some states.
In Florida, the average income to make the 1% is $694,987. Sitting with a 26% tax rate, Florida rates No. 8 in the nation to make the 1%, according to SmartAsset.
Florida is one of the nine states with no state income tax. As a result, homes are taxed at an average of 25.82% which is lower than in 12 other states.
To reach the top 5% in Florida, you will need to be earning an average annual income of $242,996.
| Rank | State | Top 1% threshold | 1% tax rate |
|---|---|---|---|
| 1 | Connecticut | $952,902 | 28.40% |
| 2 | Massachusetts | $903,401 | 27.15% |
| 3 | California | $844,266 | 26.95% |
| 4 | New Jersey | $817,346 | 28.01% |
| 5 | Washington | $804,853 | 25.99% |
| 6 | New York | $776,662 | 28.29% |
| 7 | Colorado | $709,092 | 25.86% |
| 8 | Florida | $694,987 | 25.82% |
| 9 | Illinois | $660,810 | 26.35% |
| 10 | New Hampshire | $659,037 | 26.25% |
| 11 | Wyoming | $656,118 | 24.79% |
| 12 | Virginia | $643,848 | 26.11% |
| 13 | Maryland | $633,333 | 25.94% |
| 14 | Texas | $631,849 | 25.83% |
| 15 | Utah | $630,544 | 23.77% |
| 16 | Minnesota | $626,451 | 25.53% |
| 17 | Nevada | $603,751 | 25.19% |
| 18 | South Dakota | $590,373 | 22.99% |
| 19 | Pennsylvania | $588,702 | 24.95% |
| 20 | North Dakota | $585,556 | 24.76% |
| 21 | Georgia | $585,397 | 25.06% |
| 22 | Oregon | $571,813 | 24.66% |
| 23 | Arizona | $564,031 | 25.22% |
| 24 | Idaho | $560,040 | 23.17% |
| 25 | North Carolina | $559,762 | 25.31% |
| 26 | Montana | $559,656 | 24.46% |
| 27 | Kansas | $554,912 | 25.03% |
| 28 | Rhode Island | $548,531 | 25.26% |
| 29 | Tennessee | $548,329 | 25.12% |
| 30 | Alaska | $542,824 | 25.38% |
| 31 | Nebraska | $535,651 | 24.10% |
| 32 | Delaware | $529,928 | 25.37% |
| 33 | Vermont | $518,039 | 23.63% |
| 34 | Wisconsin | $517,321 | 24.90% |
| 35 | South Carolina | $508,427 | 24.40% |
| 36 | Michigan | $504,671 | 25.01% |
| 37 | Maine | $502,605 | 24.04% |
| 38 | Missouri | $500,626 | 24.93% |
| 39 | Ohio | $500,253 | 25.09% |
| 40 | Hawaii | $495,263 | 24.12% |
| 41 | Iowa | $483,985 | 24.09% |
| 42 | Indiana | $473,685 | 24.55% |
| 43 | Alabama | $470,341 | 23.82% |
| 44 | Oklahoma | $460,172 | 23.68% |
| 45 | Louisiana | $458,269 | 24.80% |
| 46 | Arkansas | $450,700 | 21.11% |
| 47 | Kentucky | $445,294 | 24.14% |
| 48 | New Mexico | $411,395 | 23.35% |
| 49 | Mississippi | $381,919 | 23.04% |
| 50 | West Virginia | $367,582 | 23.26% |
In the U.S., an annual income of $652,657 will land you in the 1% level of wealth.
The state with the highest income is Connecticut at $952,902. Following behind is Massachusetts at $903,401 and California at $844,266.
The state with the lowest income rate to reach the 1% is West Virginia at $367,582.
According to Pew Research Center, household incomes appear to be growing again. In 2018, the average household income in the nation was $74,600, in 2018 dollars. From 2000 to 2018, household incomes grew by only 0.3%. From 2015 to 2018, the average income rose from $70, 200 to $74,600, a 2.1% increase.
This data was analyzed by the IRS for individual tax filers in 2020. Figures have been adjusted to May 2023 dollars using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers to reflect inflation values.
