Income of the Top 1%
In 2023, to qualify for the top 1% of earners in the U.S., a household income of at least $591,550 was required, while for a single earner, the cutoff was $407,500 (Investopedia, 2023). However, the income threshold varies significantly by state. For instance, in Alabama, the top 1% of earners make about $430,000 or more annually, while in Connecticut, the figure is closer to $900,000 (Forbes, 2023).
Net Worth of the Top 1%
The top 1% of household net worth in the United States starts at $13,666,778 (DQYDJ, 2023). The spread in net worth tends to be more extreme than in income, with many households having zero or negative net worth, while the same cannot be said for income.
Conclusion
The cutoff for the top 1% of earners and net worth holders varies depending on factors such as location and household structure. It is important to consider these variations when assessing one’s financial standing relative to the top 1% in the United States.
Key Facts
- In 2023, the cutoff for a top 1% household income in the United States was $591,550, while for a single earner, the cutoff was $407,500.
- The earnings required to fall in the top 1% vary by state, ranging from about $430,000 or more annually in Alabama to closer to $900,000 in Connecticut.
Net Worth Cutoff for the Top 1%:
- The top 1% of household net worth in the United States starts at $13,666,778.
- Net worth tends to have an even more extreme spread than income. While many households have zero or negative net worth, the same statement isn’t valid for income.
Sources:
- Investopedia: Average Net Worth of the 1%
- DQYDJ: Top One Percent by Income or Net Worth in 2024?
- Forbes: Are You In The Top 1%?
FAQs
What is the income cutoff for the top 1% in the United States?
In 2023, the cutoff for a top 1% household income in the United States was $591,550, while for a single earner, the cutoff was $407,500.
What is the net worth cutoff for the top 1% in the United States?
The top 1% of household net worth in the United States starts at $13,666,778.
How does the cutoff vary by state?
The income and net worth cutoffs for the top 1% vary significantly by state. For example, in Alabama, the top 1% of earners make about $430,000 or more annually, while in Connecticut, the figure is closer to $900,000.
Why is the cutoff different for income and net worth?
The cutoff for the top 1% of income and net worth is different because net worth takes into account not only income but also assets and liabilities. As a result, it is possible for someone to have a high income but a low net worth, or vice versa.
How many people are in the top 1% in the United States?
Approximately 1.3 million households, or about 1% of the population, are in the top 1% of income earners in the United States.
What are some of the factors that contribute to being in the top 1%?
Some of the factors that contribute to being in the top 1% include high levels of education, specialized skills, entrepreneurship, and inheritance.
Is it possible to move into or out of the top 1%?
Yes, it is possible to move into or out of the top 1% over time. Factors such as changes in income, net worth, and the overall economy can affect an individual’s or household’s ranking.