Ever wonder what it really takes to be in the infamous “one percent”?
I used to think it was a flat million dollars a year, no matter where you lived. Turns out that’s only true in one single state – and even then, barely. The income you actually need to join America’s wealthiest slice varies wildly depending on which state you call home. Some numbers will floor you; others might make you feel a little better about your own paycheck.
Let’s pull back the curtain on the real numbers for 2025.
The Million-Dollar Club Has Exactly One Member
Connecticut stands alone as the only state where you need seven figures – $1,056,996 to be exact – to crack the top 1%. That’s right, over a cool million. Boston-area tech money and New York finance spill over the border, plus old-money enclaves like Greenwich push the bar impossibly high.
Right behind it you’ve got Massachusetts ($965k) and California ($905k) – places where six-figure salaries feel almost middle-class in certain zip codes like Palo Alto or Cambridge. The Northeast and West Coast basically own the top of this list, and it’s not even close.
But here’s the thing that always gets me: even in states we think of as “rich,” the spread is huge. Florida clocks in at $859k while next-door Georgia only asks for $662k. Same sun, wildly different price of entry.
The Complete 50-State Ranking (2025 numbers included)
| Rank | State | Top 1% Income | # of 1% Households | Top 5% Income |
| 1 | Connecticut | $1,056,996 | 16,917 | $362,263 |
| 2 | Massachusetts | $965,170 | 32,795 | $378,434 |
| 3 | California | $905,396 | 175,045 | $353,073 |
| 4 | New Jersey | $901,082 | 43,042 | $367,108 |
| 5 | New York | $891,640 | 91,840 | $307,753 |
| 6 | Florida | $859,381 | 105,101 | $281,811 |
| 7 | Washington | $819,101 | 35,597 | $355,767 |
| 8 | Colorado | $772,989 | 27,685 | $318,659 |
| 9 | Wyoming | $771,369 | 2,611 | $255,320 |
| 10 | Texas | $743,955 | 128,130 | $284,661 |
| … | … | … | … | … |
| 46 | Arkansas | $517,761 | 12,198 | $217,087 |
| 47 | Kentucky | $496,281 | 18,395 | $215,196 |
| 48 | New Mexico | $451,639 | 9,310 | $211,101 |
| 49 | Mississippi | $439,479 | 11,731 | $195,171 |
| 50 | West Virginia | $416,310 | 7,316 | $196,335 |
Yes, you’re reading that right – in West Virginia you “only” need about $416k to be richer than 99% of your neighbors. That’s less than half of what Connecticut demands.
Why the Gap Is So Massive
It basically comes down to three things: industry concentration, cost of living (sort of), and the sheer number of ultra-high earners pulling the average up.
Take tech and finance. When you have thousands of people pulling down eight-figure exit packages or hedge-fund partners clearing $20 million bonuses, the income needed to stay ahead of them skyrockets. Silicon Valley, Seattle, Boston, and lower Manhattan are ground zero for that phenomenon.
On the flip side, states with fewer corporate headquarters, smaller financial sectors, and more traditional economies simply don’t produce as many super-sized paychecks. The ceiling is lower, so the entry ticket to the top 1% is lower too.
Cost of living plays a role, but not as much as people think. After all, Wyoming has the 9th-highest threshold while having one of the lowest costs of living in the country. That’s energy money – oil, gas, and mineral wealth concentrated in relatively few hands.
Surprises That Caught My Eye
- Texas is only 10th despite Dallas, Houston, and Austin booming – Florida actually beats it by a lot.
- North Dakota cracks the top 15 thanks to the Bakken oil boom lingering effects.
- Nevada (Vegas + Reno tech) beats Virginia (D.C. suburbs full of six-figure government contractors).
- New Hampshire sneaks into the top 12 with basically no income tax and a lot of Boston commuters.
- Mississippi and West Virginia are the only two states under $450k.
Honestly, the Wyoming number always makes me laugh a little. Fewer than 3,000 households make the cut, but those ranchers and energy barons are printing money.
What This Means for Regular Investors
These numbers are sobering if your goal is to feel “rich” compared to everyone else in your state. In California or New York, even $500k household income keeps you closer to the top 10% than the top 1%. But in the Southeast or Midwest? You’re knocking on the door.
That’s why geography still matters for wealth-building. The same investment portfolio or business that makes you merely comfortable in the Bay Area can make you genuinely wealthy in Tennessee or Idaho.
I’ve seen friends move from high-cost coastal cities to places like Boise or Raleigh and suddenly feel like they hit the lottery – same income, dramatically higher percentile ranking.
“Location is the last leverage left for the upper-middle class,” one wealth manager told me last year. He wasn’t wrong.
The Bigger Picture on Inequality
Look at the sheer number of top 1% households and you see where the money really concentrates. California has 175,000 of them – more than the bottom 20 states combined. New York and Florida follow, then there’s a steep drop-off.
We’re not just talking about a wage gap anymore; we’re talking about entire regional economies built around producing (and keeping) extreme wealth. The rest of the country plays a different game.
Whether that’s healthy for society is a debate for another day. But as an investor, understanding these fault lines helps you position yourself better – whether that means chasing higher salaries in a boom state or building passive income streams that let you live wherever you want.
Final Takeaway
The top 1% isn’t a monolith. It’s a moving target that changes block by block, state by state. Know your local number. It’ll tell you more about your financial journey than any national headline ever could.
And if you’re nowhere close yet? Good. The game’s more fun from the underdog position anyway.
Now go build something that moves the needle – wherever you happen to live.
