Top 5% of Earners in 12 States Exceed Half a Million Annually
The top 5% of wealthy Americans in 12 states earn over half a million dollars each year. In contrast, the median household income in these states does not surpass $102,000.
To identify the income required to be among the top 5% in each state, GOBankingRates considered factors like household median income, the lower limit of household income, and average household income for each income quintile. Rankings were created to illustrate the highest average income for the top 5% of household earners.
Key Findings
- Top 5% earn $600,000 or more: States like Connecticut, California, Massachusetts, New York, and New Jersey lead this group, known for their high cost of living.
- 12 states have top 5% earners: Their annual earnings exceed half a million dollars:
- Connecticut: $637,673
- California: $619,938
- Massachusetts: $619,385
- New York: $619,178
- New Jersey: $616,334
- Washington: $573,110
- Colorado: $535,056
- Virginia: $534,776
- Maryland: $522,117
- Illinois: $514,347
- New Hampshire: $510,730
- Hawaii: $505,977
- Income disparity: New York’s top 5% make seven times more than the median household income, while 24 other states have their top 5% earning six times more, and 25 states see a fivefold difference.
The following sections detail the specific earnings required to be in the top 5% in each state.
1. Connecticut
- Average income for the top 5%: $637,673
- Median household income: $93,760
- Income gap: Average top 5% earn 6.8 times the median.
2. California
- Average income for the top 5%: $619,938
- Median household income: $96,334
- Income gap: Average top 5% earn 6.4 times the median.
3. Massachusetts
- Average income for the top 5%: $619,385
- Median household income: $101,341
- Income gap: Average top 5% earn 6.1 times the median.
4. New York
- Average income for the top 5%: $619,178
- Median household income: $84,578
- Income gap: Average top 5% earn 7.3 times the median.
5. New Jersey
- Average income for the top 5%: $616,334
- Median household income: $101,050
- Income gap: Average top 5% earn 6.1 times the median.
6. Washington
- Average income for the top 5%: $573,110
- Median household income: $94,952
- Income gap: Average top 5% earn 6 times the median.
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7. Colorado
- Average income for the top 5%: $535,056
- Median household income: $92,470
- Income gap: Average top 5% earn 5.8 times the median.
# Income Disparity Among Top-Earning Households in U.S. States
## Virginia
- Average income for the top 5%: $534,776
- Median household income: $90,974
- Difference between top 5% and median household income: 5.9x
## Maryland
- Average income for the top 5%: $522,117
- Median household income: $101,652
- Difference between top 5% and median household income: 5.1x
## Illinois
- Average income for the top 5%: $514,347
- Median household income: $81,702
- Difference between top 5% and median household income: 6.3x
## New Hampshire
- Average income for the top 5%: $510,730
- Median household income: $95,628
- Difference between top 5% and median household income: 5.3x
## Hawaii
- Average income for the top 5%: $505,977
- Median household income: $98,317
- Difference between top 5% and median household income: 5.2x
## Florida
- Average income for the top 5%: $499,872
- Median household income: $71,711
- Difference between top 5% and median household income: 7x
## Minnesota
- Average income for the top 5%: $496,581
- Median household income: $87,556
- Difference between top 5% and median household income: 5.7x
## Texas
- Average income for the top 5%: $494,328
- Median household income: $76,292
- Difference between top 5% and median household income: 6.5x
## Rhode Island
- Average income for the top 5%: $489,811
- Median household income: $86,372
- Difference between top 5% and median household income: 5.7x
## Delaware
- Average income for the top 5%: $477,949
- Median household income: $82,855
- Difference between top 5% and median household income: 5.8x
## Alaska
- Average income for the top 5%: $477,622
- Median household income: $89,336
- Difference between top 5% and median household income: 5.4x
The data above reveals significant income disparities between the top earners and median households across these states. Understanding these figures is crucial for grasping economic inequality in the U.S.
Income Disparity: Top 5% Earnings Across the U.S. States
20. Utah
- Average income for the top 5%: $468,606
- Median household income: $91,750
- Income multiplier over median households: 5.1x
21. Pennsylvania
- Average income for the top 5%: $468,603
- Median household income: $76,081
- Income multiplier over median households: 6.2x
22. Georgia
- Average income for the top 5%: $467,103
- Median household income: $74,664
- Income multiplier over median households: 6.3x
23. Oregon
- Average income for the top 5%: $464,386
- Median household income: $80,426
- Income multiplier over median households: 5.8x
24. Arizona
- Average income for the top 5%: $461,017
- Median household income: $76,872
- Income multiplier over median households: 6x
25. Nevada
- Average income for the top 5%: $460,558
- Median household income: $75,561
- Income multiplier over median households: 6.1x
26. Vermont
- Average income for the top 5%: $453,461
- Median household income: $78,024
- Income multiplier over median households: 5.8x
27. South Dakota
- Average income for the top 5%: $452,480
- Median household income: $72,421
- Income multiplier over median households: 6.3x
28. North Carolina
- Average income for the top 5%: $443,291
- Median household income: $69,904
- Income multiplier over median households: 6.3x
29. Tennessee
- Average income for the top 5%: $435,495
- Median household income: $67,097
- Income multiplier over median households: 6.5x
30. Montana
- Average income for the top 5%: $420,968
- Median household income: $69,922
- Income multiplier over median households: 6x
Income Disparities in the United States: A State-by-State Analysis
31. South Carolina
- Average income for the top 5%: $419,871
- Median household income: $66,818
- Income disparity (top 5% vs. median): 6.3x
32. Idaho
- Average income for the top 5%: $418,188
- Median household income: $74,636
- Income disparity (top 5% vs. median): 5.6x
33. Wisconsin
- Average income for the top 5%: $418,095
- Median household income: $75,670
- Income disparity (top 5% vs. median): 5.5x
34. Ohio
- Average income for the top 5%: $417,374
- Median household income: $69,680
- Income disparity (top 5% vs. median): 6x
35. Maine
- Average income for the top 5%: $415,677
- Median household income: $71,773
- Income disparity (top 5% vs. median): 5.8x
36. Missouri
- Average income for the top 5%: $410,472
- Median household income: $68,920
- Income disparity (top 5% vs. median): 6x
37. Michigan
- Average income for the top 5%: $409,636
- Median household income: $71,149
- Income disparity (top 5% vs. median): 5.8x
38. Iowa
- Average income for the top 5%: $400,534
- Median household income: $73,147
- Income disparity (top 5% vs. median): 5.5x
39. Wyoming
- Average income for the top 5%: $400,071
- Median household income: $74,815
- Income disparity (top 5% vs. median): 5.4x
40. North Dakota
- Average income for the top 5%: $399,162
- Median household income: $75,949
- Income disparity (top 5% vs. median): 5.3x
41. Kansas
- Average income for the top 5%: $398,469
- Median household income: $72,639
- Income disparity (top 5% vs. median): 5.5x
# Salary Requirements to Live Comfortably in America’s Largest Cities
#### Income Behind America’s Top 50 Cities
In a recent study by GOBankingRates, the necessary income to be among the top 5% of earners was analyzed across the United States. Below are key insights from the research, highlighting average incomes for the wealthiest brackets and comparing them to median household incomes.
### 42. Indiana
– **Average income for the top 5%:** $393,813
– **Median household income:** $70,051
– **Income disparity:** 5.6 times
### 43. Oklahoma
– **Average income for the top 5%:** $392,351
– **Median household income:** $63,603
– **Income disparity:** 6.2 times
### 44. Louisiana
– **Average income for the top 5%:** $389,605
– **Median household income:** $60,023
– **Income disparity:** 6.5 times
### 45. Alabama
– **Average income for the top 5%:** $388,183
– **Median household income:** $62,027
– **Income disparity:** 6.3 times
### 46. New Mexico
– **Average income for the top 5%:** $378,797
– **Median household income:** $62,125
– **Income disparity:** 6.1 times
### 47. Kentucky
– **Average income for the top 5%:** $372,886
– **Median household income:** $62,417
– **Income disparity:** 6 times
### 48. Arkansas
– **Average income for the top 5%:** $364,124
– **Median household income:** $58,773
– **Income disparity:** 6.2 times
### 49. Mississippi
– **Average income for the top 5%:** $344,395
– **Median household income:** $54,915
– **Income disparity:** 6.3 times
### 50. West Virginia
– **Average income for the top 5%:** $330,270
– **Median household income:** $57,917
– **Income disparity:** 5.7 times
#### Methodology
GOBankingRates conducted this study by analyzing various factors across U.S. states, including total population, age demographics, household income, and cost of living. Data was sourced from the U.S. Census American Community Survey, Missouri Economic and Research Information Center, and Zillow Home Value Index. All data collected was up-to-date as of April 30, 2025.
The findings provide a comprehensive look at the income landscape, illustrating significant disparities between high earners and median households across these states.
