The United States has revealed significant regional variations in the income necessary to join the top 1% of earners, according to IRS data from 2022 adjusted for inflation to May 2025 dollars.
Connecticut sets the highest bar at $1,056,996, while West Virginia requires only $416,310. The main drivers behind these differences are cost of living, industry density, and migration trends.
Northeastern states dominate the rankings due to their finance, technology, and professional services clusters, such as New York City’s Wall Street and Silicon Valley. These regions attract high-paying jobs, making it difficult for individuals from lower-income backgrounds to enter the top 1%.
States like California and Massachusetts have thresholds of $1 million, driven by their biotech and higher education industries. The District of Columbia surpasses all with a threshold of $1,250,029, largely due to its influential lobbying, law firms, and policymakers.
In contrast, Southern and Midwestern states like Mississippi ($270,000) and West Virginia ($416,310) rank lower due to their lower living costs and reliance on agriculture, manufacturing, and energy sectors.
Federal policies, such as the top marginal tax rate of 37%, also contribute to these disparities. Meanwhile, real wage growth has stagnated for the bottom 90% according to Census data, leading to widening income inequality.
Source: https://indiadatamap.com/2025/11/29/income-needed-to-join-the-top-1-in-usa