Being “rich” isn’t the same in every state — what seems opulent in one territory might seem pedestrian in another, and a dollar might get you a lot more in some areas than others. So how do you define being “rich”? One way is by looking at the top 5% income earners in each state. While, in some states, being in the 5% elite is within relatively close reach, in others, the income benchmark for this cohort is significantly higher, making it a more elusive club to join.

A recent study conducted by GOBankingRates utilized data from the U.S. Census Bureau’s 2021 American Community Survey to delve into the average income required to qualify as part of the top 5% in each state, contrasting it with the state’s overall average income. This analysis not only reveals the stark variation in wealthy thresholds across the country but also paints a picture of the substantial income disparity within each state.

Below is a detailed look at the financial benchmarks for being considered “rich” in each state, as well as the significant income disparity between the top 5% and the average income earners.

Alabama

• Income Threshold for Top 5%: $202,158
• Average Household Income for Top 5%: $336,788
• Median Household Income for the Entire State: $54,943
• Ratio of Top 5% Income to Median Income: 6.1x

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Alaska

• Income Threshold for Top 5%: $250,000
• Average Household Income for Top 5%: $394,694
• Median Household Income for the Entire State: $80,287
• Ratio of Top 5% Income to Median Income: 4.9x

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Arizona

• Income Threshold for Top 5%: $233,908
• Average Household Income for Top 5%: $395,620
• Average Household Income for the Entire State: $65,913
• Ratio of Top 5% Income to Median Income: 6.0x

Arkansas

• Income Threshold for Top 5%: $193,240
• Average Household Income for Top 5%: $344,470
• Average Household Income for the Entire State: $52,123
• Ratio of Top 5% Income to Median Income: 6.6x

California

• Income Threshold for Top 5%: $250,000
• Average Household Income for Top 5%: $555,007
• Median Household Income for the Entire State: $84,097
• Ratio of Top 5% Income to Median Income: 6.6x

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Florida

• Climbing the Rungs: $236,080 to join the top 5% club
• Towering Peaks: Top 5%ers average a household income of $431,870
• Sea Level: Average household income for the entire state settles at $61,777
• Rising Sunrise: Top 5%ers make 7.0x more than the average Floridian

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Georgia

• Top 5% Threshold: $245,320 – the ticket price for entry
• Summit Stats: Top 5% households rake in an average of $422,018
• Statewide Average: Overall median household income stands at $65,030
• Heightened Divide: Top 5%ers out-earn the average Georgian by 6.5x

Hawaii

• Pinnacle Position: $250,000 – the cost of admission to the top 5%
• Peaks of Plenty: Top 5% households average a mighty $459,305
• Middle Summit: Median household income across the state is recorded at $88,005
• Perched Profits: Top 5%ers soar 5.2x higher than the median income

Idaho

• Peak Requirements: A healthy $212,170 required to break into the top 5%
• Summit Yields: Top 5% households fetching an average of $360,622
• Base Camp: Median household income rests at $63,377 statewide
• Top 5% Summit: Peak earners make 5.7x more than the median household

Illinois

• Ascending Ladder: $250,000 to stake a claim in the top 5%
• Peak Payouts: Top 5% households reeling in an average of $466,713
• State Base: Median household income averaging $72,563
• Crested Divide: Top 5% earners exceed the median by 6.4x

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Indiana

• Peak Protocols: $205,154 – the cost of admission to the top 5%
• Summit Payouts: Top 5% households boasting an average of $347,661
• Statewide Median: Median household income perched at $61,944
• Top 5% Peak: Earnings surpass median incomes by 5.6x

Iowa

• Peak Passage: $210,930 required to reach the top 5%
• Peak Earnings: Top 5% households amassing an average of $352,704
• State Summit: Median household income within the state averaging at $65,429
• Top 5% Heights: Grand 5.4x more than median incomes

Kansas

• Peak Ascents: $220,993 – the price of entry to the top 5%
• Pinnacle Returns: Top 5% households reaping an average of $383,038
• Median Plains: Median household income averaging at $64,521 across the state
• Top 5% Summit: Earnings eclipsing median incomes by 5.9x

Kentucky

• Top 5% Thresholds: $197,902 – the admission fare for the top 5%
• Summit Windfalls: Top 5% households raking in an average of $350,411
• Median Grounds: Median household income reaching $55,454 statewide
• Top 5% Ascent: 6.3x more than the median income

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Louisiana

• Top 5% Targets: $210,664 – the required wealth to join the top 5%
• Summit Revenues: Top 5% households earning an average of $357,026
• Median Ascents: Median household income recorded at $53,571 across the state
• Top 5% Summit: Earnings towering 6.7x higher than median incomes

Maine

• Top 5% Entry: $211,731 needed to enter the top 5%
• Peak Profits: Top 5% households netting an average of $359,776
• State Median: Median households earnings gathering at $63,182
• Top 5% Heights: 5.7x more than the median income

The Unequal Economic Landscape in the Top 5% Wealthy States

Maryland: A Fortress of Prosperity

In Maryland, a substantial household annual income of $503,597 puts individuals in the top 5%. This staggering figure towers over the median household income for the entire state which is $91,431. The top 5% in the state make a mind-boggling 5.5 times more than the median household. A figurative fortress of prosperity, Maryland beckons the well-heeled to its opulent abode.

Massachusetts: A Beacon of Affluence

Massachusetts glows as a beacon of affluence, with a requirement of $250,000 to be within the top 5%. The average household income for this exclusive cohort totals an impressive $558,616. This sum towers over the median household income for the entire state which stands at $89,026. The average 5% in Massachusetts triples the median income, a staggering 6.3-fold difference.

Michigan: A Realm of Lavishness

In Michigan, the top 5% requires an annual income of $222,336 to dwell in the realm of lavishness. Their average household income reaches an astonishing $376,426, while the median household income for the state is a modest $63,202. This leads to the wealthy 5% making a whopping 6 times more than the median earner, a stratospheric contrast.

Minnesota: A Sanctuary of Opulence

Minnesota boasts a sanctuary of opulence where the top 5% requires an income of $250,000. Their lavish lifestyle is supported by an average household income of $441,274, towering above the state’s median household income of $77,706. This affluent group makes a staggering 5.7 times more than the median inhabitants, creating a vertiginous gap in wealth.

Mississippi: A Gulf of Disparity

In Mississippi, the top 5% reside in a gulf of disparity with an income requirement of $179,799. Their average household income stands at $308,523, whereas the median household income lingers at a meager $49,111. This means the wealthiest 5% in the state accumulate a staggering 6.3 times more than the median – a shocking disparity.

Missouri: A Canyon of Inequality

In Missouri, the top 5% accrue an average household income of $371,277, towering over the state’s median household income of $61,043. The vast chasm of inequality found here means the wealthiest inhabitants make 6.1 times more than the median – a gaping canyon of disparity.

Montana: A Pinnacle of Wealth

Montana sits atop a pinnacle of wealth with the top 5% amassing $370,234 in average household income, towering over the median household income of $60,560. This constitutes a staggering 6.1 times more than the median income, forming a breathtaking peak of wealth in the state.

Nebraska: A Summit of Prosperity

In Nebraska, the top 5% reside at the summit of prosperity. Their average household income of $378,679 dwarfs the state’s median household income at $66,644. The gulf between the two categories is staggering at 5.7 times, creating a lofty peak of wealth and a valley of disparity.

Nevada: An Oasis of Affluence

Nevada provides an oasis of affluence for the top 5%, who boast an annual income of $410,161. This figure is a stark contrast to the state’s median household income of $65,686, resulting in the top 5% making 6.2 times more than the median household, a metaphorical oasis of wealth in the state.

New Hampshire: A Plateau of Riches

New Hampshire provides a plateau of riches for its top 5%, with an average household income of $440,829 dwarfing the state’s median household income of $83,449. That’s a hefty 5.3 times more than the median income, creating an expansive yet divisive plateau of wealth in the state.

New Jersey: A Throne of Opulence

In New Jersey, the top 5% inhabit a throne of opulence, with an average household income of $562,886 towering over the median household income. This creates a vast divide, with the top 5% making a staggering 6.3 times more than the median – a throne distinctly disparate from the broader populace.

Exploring the Income Disparity Across the USA

Don’t judge a book by its cover, they say. But what if that cover could potentially define your entire lifetime? The income disparity among the residents of various U.S. states is painting a rather vivid picture of economic inequalities. From state to state, the top 5% live a life that’s light-years away from the median household income. Buckle up as we embark on an eye-opening journey from New Mexico to South Dakota to uncover the staggering contrasts in economic fortunes.

New Mexico’s Economic Discrepancy

When it comes to the Land of Enchantment, it’s all about the numbers. To join the coveted top 5%, you’d need an annual income of $197,251, while the average household income for this fortunate percentile stands at an impressive $323,568. Now, compare that with the median household income for the entire state, a mere $54,020. The top 5% in New Mexico make a staggering 6.0 times more than the median household—talk about the haves and the have nots.

The Big Apple’s Stark Contrast

Concrete jungle where dreams are made of… and often shattered by economic disparities. In New York, the bar is set astronomically high to join the elite 5%. With an annual income requirement of $250,000, the average household income for this echelon gifts its members a staggering $574,063. In stark contrast, the median household income for the entire state is a paltry $75,157. The average top 5% makes a mind-boggling 7.6 times more than the median income earners—highlighting the cavernous gap in economic fortunes within the Empire State.

The Tar Heel State’s Uneven Wealth Distribution

North Carolina, the Tar Heel State, boasts a top 5% income entry barrier of $228,071, rewarding its members with an enviable average household income of $390,822. Meanwhile, the median household income for the entire state hovers at $60,516—a stark contrast indeed. Those residing in the top 5% in North Carolina make a looming 6.5 times more than their counterparts in the median income bracket—truly a tale of two cities.

North Dakota’s Economic Polarization

In North Dakota, the elite 5% need to command an annual income of $224,445 to gain entry. Once in, they enjoy an average household income of $380,261, creating a gulf with the median household income for the entire state, which stands at $68,131. Here, the average 5% makes a significant 5.6 times more than the median—underscoring the staggering disparities that engulf the Peace Garden State.

Ohio: A State of Financial Contrasts

Ohio, the Buckeye State, offers yet another glaring demonstration of economic polarity. A minimum annual income of $216,003 opens the doors to the top 5%, with an average household income of $370,964 awaiting those who succeed. Their compatriots in the median income category, meanwhile, crank out an average income of $61,938. Ultimately, the top 5% in Ohio make a substantial 6.0 times more than the median household earners—proof that Lady Luck is selective in the Buckeye State.

Oklahoma’s Economic Dichotomy

When Oil Capital of the World meets income inequality, the outcome is poignant. Those aspiring to join Oklahoma’s elite 5% need to amass $201,605 annually, reaping the rewards of an average household income of $348,180. In stark contrast, the median household income for the entire state is a modest $56,956. This creates a palpable gap, with the average 5% making a noteworthy 6.1 times more than the median earners—accentuating the economic chasm in the Sooner State.

Oregon’s Financial Disparities

The Beaver State boasts a similar narrative of financial disparities. With a prerequisite annual income of $245,626, the top 5% relish an average household income of $404,468. The median household income for the entire state, however, halts at $70,084. This staggering divide sees the average top 5% making 5.8 times more than the median—an irrefutable testament to the chasms in Oregon’s economic landscape.

Pennsylvania’s Wealth Void

Pennsylvania’s story of financial contrasts is both stark and sobering. The Keystone State demands a minimum annual income of $246,367 for the top 5%, offering them an average household income of $417,872 in return. Contrariwise, the median household income for the entire state languishes at $67,587. Owing to this disparity, the top 5% in Pennsylvania make a sizeable 6.2 times more than the median household income earners—emphasizing the deep rifts within the state’s economic framework.

Rhode Island’s Economic Gaps

Even in the quaint backdrop of Rhode Island, economic disparities loom large. An annual income of $250,000 is the ticket to the top 5%, where an average household income of $424,473 awaits. The median household income for the entire state stands at $74,489, showcasing a considerable divide. Notably, the average 5% in Rhode Island makes 5.7 times more than the median household income earners—illuminating the economic fissures within the Ocean State.

South Carolina’s Financial Contrasts

South Carolina, with its sandy shores and historical allure, harbors a profound tale of financial contrasts. To gain entry into the top 5%, one would need a minimum income of $214,275, with the average household income for this privileged percentile ringing in at $374,427. On the flip side, the median household income for the entire state amounts to $58,234. Evidently, the average top 5% makes a striking 6.4 times more than their median counterparts, laying bare the sharp dichotomy in South Carolina’s financial landscape.

South Dakota’s Economic Duality

Amid the serene pastures of South Dakota, economic duality is ripe. A threshold of $202,777 in annual income is the key to the top 5%, boasting an average household income of $358,060. The median household income for the entire state, however, clocks in at $63,920—marking a tangible disparity. Thus, the average top 5% in South Dakota pulls in a notable 5.6 times more than the median household income earners—showcasing the sizable economic contrast within the Mount Rushmore State.

The Financial Heights in Every State: What It Takes to Join the Top 5%

Andrew Lisa and John Csiszar contributed to the reporting of this article.

Methodology: GOBankingRates found how much a household has to make pre-tax to be in the top 5% highest-earning households in each state by analyzing the Census Bureau’s 2021 American Community Survey (ACS). GOBankingRates took the 2021 ACS data on “Household Income Quintile Upper Limits” and found each state’s (1) lower income limit of the top-5 percent of households. Supplemental data compiled includes (2) average household income of the top 5%; (3) average household income for the entire state; and (4) how much more the average 5% household makes than the overall average household in each state. Data is accurate as of May 31, 2023 and is subject to change.

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This article originally appeared on GOBankingRates: How Much You Need To Be in the Top 5% in Every State

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