For some, making enough money to “live comfortably” can be quite difficult. On the other hand, there are those whose incomes catapult them into the top 1% of earners. It’s an interesting contrast, really—how close might you be to that top echelon?
A recent survey highlights that approximately 1.5 million households in the U.S. qualify for that top 1%. That’s more than the populations of both Dallas and San Diego combined, though it’s only about half of Chicago’s populace for perspective.
According to SmartAsset’s findings, the average income necessary to hit the top tier is around $731,000 annually. However, some states—and Washington D.C.—require significantly more to join this elite group.
For instance, D.C. has the highest threshold, demanding an annual household income of approximately $11.07 million to qualify. Connecticut isn’t far behind, where you’ll need about $1.06 million. Interestingly, in West Virginia, a household can earn less than half of that—under $416,300—and still make it into the top 1%. Roughly 7,300 households there fit this profile.
Only three other states allow you to crack the top tier with a household income under $500,000: Mississippi, New Mexico, and Kentucky.
If you’re curious about how income levels vary across the country, you can find an interactive map illustrating these thresholds for the top 1% in every state.
Now, entering the top 5% might feel a bit more within reach. Nationally, the average income to qualify for this group is just over $287,100, with nearly 7.5 million households meeting this criteria, which surpasses the combined populations of Dallas, San Diego, and Chicago.
The hurdle is steepest in D.C. again, where a household needs around $412,000 to be considered among the top 5%. Elsewhere, the threshold generally exceeds $400,000.
On the flip side, Mississippi has edged out West Virginia, now having the lowest income requirement to top 95% of the state’s earners, needing just around $196,300.
There’s also an interactive map available that shows how much you need to earn to be in the top 5% across the states.
SmartAsset utilized the latest IRS tax return data, adjusting it to 2025 for their analysis. Interestingly, earlier research indicated that someone living in the largest U.S. city needs at least $85,000 annually to live comfortably, while a family of four requires around $200,000. However, these numbers can vary greatly in different cities.
At the same time, new data shows a trend where more Americans are reallocating their finances into accounts that yield investment returns, driven by rising inflation and economic uncertainties.
In an analysis by the JPMorgan Chase Institute, they found that total cash reserves for households are on the rise, based on a survey of 4.7 million households. It included new amounts in securities accounts, funds, and certificates of deposits to gauge financial well-being.
Inflation-adjusted balances in checking and savings accounts continue on a low growth trajectory, but total cash reserves are increasing and trending closer to historical norms, as the analysis suggests.
“Families across various income levels are navigating their financial landscapes differently,” stated Chris Wheat, the president of the institute.
