How do you become a member of the 1%? It’s a regional thing.
It has been observed that the wealthiest 1% of Americans reside in coastal states, both the East and West Coast – where big cities are located.
Northeast states like Connecticut ($896,490), Massachusetts ($810,256), New York ($777,126), and New Jersey ($760,462) have the highest one-percenter thresholds.
The state of California rounds out the top five, where a citizen must earn at least $745,314 annually to be included in the top one percent of income earners.
According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) was used to convert 2018 IRS income statistics into 2021 dollars.
Are you one of the 1%? Highest threshold states
West Virginia ($350,212), Mississippi ($361,462), New Mexico ($384,427), Arkansas ($411,633), and Kentucky ($412,836) round out the bottom five.
Individual income taxes may be reduced in some states.
The top 1% makes twice as much as the top 5% in the United States. In order to be included in the country’s top 1 percent of earners, one must earn $597,815, which is 2.48 times more than the $240,712 required to be in the top 5 percent of national earners.
But how much tax do the highest incomes pay?
At least 25 percent of the state’s total income tax is paid by the highest earners. State-by-state breakdown: Nevada’s one-percenters pay the greatest percentage of the state’s total income taxes (50.1 percent). The top 1% of earnings contribute 35.79% of all individual income taxes paid in the United States.