In the United States, how much money does it take to be considered wealthy? This largely depends on where you live.
According to a recent analysis report released by the personal finance website GOBankingRates, the area with the highest income standard for the wealthy in the United States is Washington, D.C., where an annual salary of $719,000 is needed to be among the top 5% income earners.
When measured by state, Connecticut ranks first in terms of wealthy standards, with residents needing to reach a yearly income level of $656,438 to join the ranks of high-income earners.
The report also shows that Washington state has seen the fastest increase in wealthy standards in recent years. In 2017, an annual salary of around $378,000 could place you among the top 5% of wealthy individuals. But by 2022, the wage needed to maintain this level has exceeded $544,000.
Overall, since 2017, the wealthy in the United States have become wealthier. In that year, only in Connecticut and Washington, D.C., did the threshold to enter the top 5% of highest income earners reach $500,000 per year. However, five years later, standards in 11 states across the U.S. as well as in Washington, D.C. have reached this level.
The report from GoBankingRates analyzed the average household income of the top 5% income earners in each state based on the latest data provided by the 2022 American Community Survey.
Here are the wages required in 2022 to be among the top 5% income earners in each state across the U.S. and Washington, D.C. (listed in alphabetical order by state name):
– Alabama: $370,977
– Alaska: $424,278
– Arizona: $435,414
– Arkansas: $377,043
– California: $613,602
– Colorado: $507,181
– Connecticut: $656,438
– Delaware: $442,860
– Florida: $476,546
– Georgia: $455,439
– Hawaii: $500,183
(Reference: CNBC)