(NEXSTAR) – The disparity between what the average U.S. resident makes each year and the income of each state’s highest earners has always been a topic of great debate.
in fact, Wallet Hub “The most recent Census data shows that the highest 10 percent of earners in the United States earn more than 12 times more than the lowest 10 percent of earners.”
And when we looked at the “average salary” across the country, ($74,600While these figures seem to paint a clear picture of just how far most Americans are from the 5% club, a closer look at top salaries reveals an even starker disparity, according to the latest data from the Federal Reserve.
Wallet Hub We broke down incomes for all 50 US states and Washington, DC, into three groups: the average annual income of the top 5%, the average of the bottom 20%, and the median for all residents of each state.
Coming in at number one is New York, where the top 5% earn about $553,000 a year. That’s about $35,000 more than the next two states and about $100,000 more than the 10th-placed state.
While the top 5% of New York state residents are thriving, the bottom 20% lag far behind, ranking 44th with salaries of $13,301.
Close behind New York are Connecticut and Virginia, with averages of around $518,000 each, followed by New Jersey and Illinois, both of which hover around $505,000.
The state with the lowest bar for the top 5% is Alaska, where you need to earn about $321,000 to get into that club. Hawaii and Vermont are not far behind, with the top 5% earning about $334,000.
Check to see what you need to make in your state:
| Rank | state | Average annual income of the top 5% | Average annual income | Average annual income of the bottom 20% |
|---|---|---|---|---|
| 1 | new york | $553,436 | $91,366 | $13,301 |
| 2 | Connecticut | $518,757 | $114,156 | $14,576 |
| 3 | Virginia | $518,296 | $89,393 | $18,694 |
| Four | New Jersey | $505,621 | $117,847 | $16,445 |
| Five | Illinois | $504,800 | $78,304 | $16,192 |
| 6 | Georgia | $487,870 | $66,612 | $16,472 |
| 7 | Texas | $481,483 | $70,513 | $16,802 |
| 8 | Washington | $474,067 | $103,748 | $18,223 |
| 9 | Florida | $470,308 | $68,818 | $15,375 |
| Ten | Massachusetts | $466,208 | $127,760 | $13,689 |
| 11 | Minnesota | $464,981 | $86,364 | $19,797 |
| 12 | Colorado | $456,603 | $97,301 | $18,451 |
| 13 | California | $454,829 | $123,988 | $13,949 |
| 14 | Tennessee | $453,539 | $59,077 | $15,679 |
| 15 | District of Columbia | $450,892 | $162,265 | $9,011 |
| 16 | North Carolina | $450,592 | $63,025 | $15,836 |
| 17 | Utah | $448,195 | $89,786 | $22,491 |
| 18 | Michigan | $446,114 | $62,446 | $17,019 |
| 19 | Missouri | $446,069 | $59,715 | $16,821 |
| 20 | Pennsylvania | $445,261 | $74,711 | $15,801 |
| twenty one | Ohio | $436,922 | $61,904 | $16,188 |
| twenty two | Maryland | $427,135 | $124,693 | $16,647 |
| twenty three | Arizona | $424,913 | $74,375 | $16,604 |
| twenty four | Kansas | $423,517 | $68,489 | $17,176 |
| twenty five | Nebraska | $416,325 | $72,384 | $17,380 |
| 26 | Arkansas | $416,224 | $51,032 | $14,069 |
| 27 | South Carolina | $412,771 | $62,909 | $13,996 |
| 28 | Kentucky | $411,897 | $55,629 | $13,800 |
| 29 | Oklahoma | $405,113 | $57,215 | $15,205 |
| 30 | Idaho | $403,737 | $70,041 | $18,372 |
| 31 | Delaware | $402,989 | $87,173 | $16,930 |
| 32 | Wisconsin | $402,256 | $72,602 | $17,973 |
| 33 | Nevada | $401,062 | $80,366 | $14,472 |
| 34 | New Hampshire | $400,343 | $110,205 | $18,075 |
| 35 | Indiana | $399,270 | $64,170 | $16,670 |
| 36 | Alabama | $398,584 | $55,480 | $13,242 |
| 37 | Montana | $395,720 | $68,937 | $15,337 |
| 38 | Louisiana | $395,155 | $56,282 | $11,504 |
| 39 | Iowa | $395,093 | $68,974 | $17,621 |
| 40 | South Dakota | $393,809 | $69,266 | $17,252 |
| 41 | North Dakota | $387,548 | $79,874 | $15,661 |
| 42 | Wyoming | $387,280 | $76,307 | $16,199 |
| 43 | Oregon | $377,399 | $91,100 | $14,720 |
| 44 | Mississippi | $377,040 | $46,880 | $12,168 |
| 45 | Rhode Island | $353,721 | $104,252 | $12,668 |
| 46 | New Mexico | $351,972 | $58,911 | $11,944 |
| 47 | West Virginia | $345,239 | $52,719 | $12,477 |
| 48 | Maine | $338,866 | $79,800 | $13,749 |
| 49 | Vermont | $334,470 | $89,695 | $14,477 |
| 50 | Hawaii | $334,369 | $141,832 | $14,014 |
| 51 | Alaska | $321,634 | $113,934 | $15,646 |
In terms of which state residents earn the most on average, Washington DC finished with the highest median income at $162,265. Unfortunately, DC also had the lowest median annual income for the bottom 20% at $9,011.
Other states with high median incomes were Hawaii ($141,832), Massachusetts ($127,760), Maryland ($124,693) and California ($123,988).
In these states, the gap between the median income and the top 5% of earners is smaller, making it easier to get promoted, but still difficult.
according to GoBankingRatesmaking that leap requires a variety of factors. First, your income needs to steadily increase, which could mean making better financial decisions, investing wisely, or even experiencing a career advancement.
Another element is having a solid investment strategy, making sure you are getting a positive return on your investments and that your portfolio is well diversified.
Finally, prioritize long-term financial security: make sure you prioritize savings over short-term pleasures.
If you want to go beyond the top 5%, Forbes Now that we know you need to earn at least $597,815 a year to be in the top 1% of income earners in the United States, it’s time to start saving.
