How much it takes to be in Alabamaâs wealthiest 1%
How much it takes to be among the very wealthy – the famed 1% of income earners – varies widely based on where you live.
On the top end is Connecticut, where you need to earn a whopping $952,902 to be among the top 1% of households. On the other end of the spectrum is West Virginia, where you need $367,582 to be among the top 1% of earners in that state.
And Alabama? It falls towards the lower end, according to the latest ranking by SmartAsset.com.
The website used data from the IRS and Bureau of Labor Statistics to determine the minimum income required to be among the top 1% of earners in each state for 2023.
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In general, the analysis found:
- Following Connecticut on the highest earning list were Massachusetts ($903,401) and California ($844,266) with the second and third-highest thresholds, respectively, for entering the top 1%.
- Washington D.C.’s top 1% earn more than $1 million and if the nation’s capital were a state, it would replace Connecticut in the number one slot. Households in D.C. aren’t considered part of the 1% if they don’t earn at least $1,013,698.
- Income thresholds vary in the country’s four largest states. It takes $844,266 and $776,662 to be in the top 1% in California and New York, respectively. But households in Florida and Texas need to earn much less to be considered among the top 1% – $694,987 and $631,849, respectively.
Southern states have the lowest income threshold with six of the 10 states with the lowest income thresholds for the 1% are in the Southeast. Alabama is among those six states, coming in at number 43 with an income of at least $470,341 needed to earn you a spot in the 1%.
Following Alabama were Oklahoma ($460,172), Louisiana ($458,269), Arkansas ($450,700), Kentucky ($445,294), New Mexico ($411,395), Mississippi ($381,919) and West Virginia ($367,582).