Incomes Needed to Be a Top 1% Earner Reach Over $1 Million in Some States – 2024 Study. The U.S. median income is around $75,000, with half of Americans earning less than that. High-income earners, on the other hand, can make 10 times that – or more.
As an annual salary, the figure corresponds roughly to the top 2% of American earners. Why $400,000? “That's a number everybody can wrap their minds around,” said Caleb Silver, editor-in-chief of Investopedia, the financial media site.
New York
New York residents earning over $817,796 are considered top 1% taxpayers, while the threshold for the top 5% is much lower at $287,752. The top 1% of taxpayers in the Empire State are taxed at an average rate of 27.48%, which is the second-highest across the country.
In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes less than $56,600, and upper-income households had incomes greater than $169,800.
Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
However, new GOBankingRates research shows that in some major U.S. cities, an annual income of $150,000 is only enough to qualify as “lower middle class.” This is especially pronounced in two Northern California cities and Arlington, Virginia.
The same study also reveals that Americans feel that being wealthy in the U.S. means having an average of $2.5 million, an increase on $2.2 million from 2023 and 2022. Baby boomers believe this figure should be slightly higher at $2.8 million, but Gen Z and Millennials believe they could feel wealthy at a lower figure.
Asian households overall had more wealth than other households two years since the start of the pandemic. In 2021, Asian households had a median net worth of $320,900, compared with $250,400 for White households. The median net worth of Hispanic households ($48,700) and Black households ($27,100) was much less.
The middle class is commonly defined as households earning between two-thirds and double the median income, which is $128,151 in the San Francisco-Oakland-Berkeley, California metro area, the Census Bureau reports. That means middle class households there earn between $85,434 and $256,302 a year.
According to Kiplinger data, to be in the top 1% of wealth in the U.S. in 2024, one must have a net worth of about $11.6 million. That's up significantly from past years, showing just how concentrated wealth has become at the top. But the 1% isn't the only benchmark worth considering.
A choropleth map of the U.S. showing the adjusted gross income needed to be in the top 1% of earners by state, using IRS tax year 2021 data adjusted to October 2024 dollars. Washington, D.C. leads at $1,222,791.28, while West Virginia trails at $425,816.40. The national figure is $797,760.07.
How much is 6 figures? 6 figures is any salary between $100,000 and $999,999, or a dollar amount with 6 digits. Similarly, a 7-figure salary means you make $1 million to $9,999,999, because there are 7 digits in those numbers; $10 million to $99,999,999 is an 8-figure salary.
"A six-figure income is no longer enough to make it out of the lower middle class in 15 cities. In three cities, a $150,000 income isn't even enough," he said. "It's important that prospective homebuyers consider these types of income differences when deciding where to move."
An annual salary of $150K won't get you into the upper 1% — that requires an annual wage of at least $785,968, according to the Economic Policy Institute. But a $150,000 annual income will place you just above the 90th to 95th percentile among U.S. earners.
While there's no definitive line, households in the top 20% of earners are generally considered upper class. According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you'd typically need an income exceeding $153,000 – more than double the national median.
Nationwide, it takes an income of $787,712 to be in the top 1% of earners. The median U.S. income is approximately $75,000, with half of Americans earning less.
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
A $100,000 salary is considered good in most parts of the country, and can cover typical expenses, pay down debt, build savings, and allow for entertainment and hobbies. According to the U.S. Census, only 15.3% of American households make more than $100,000 annually.
Does six figures matter? Only 21% of men earn 6 figures per year, with 8% being Black.