The term “top 1%” typically refers to people among the top 1% wealthiest Americans, as measured by eitherannual income or net worth. The income of those in the top 1% is many multiples above that of the average American. According to a Congressional Budget Office report, you need at least $652,657 in income per year to make the top 1%, but this varies by where you live.
While making six figures is not within the reach for many people, a financial advisor can help you build a financial plan for the future.
Income of the Top 1%
In order to be considered in the top 1% of wage earners in the U.S., you’d need to have wages of $652,657, according to information from the Congressional Budget Office, but that may change based on where you live. By comparison, the average worker in the U.S. earns just $59,384 annually.
Want to see where you fall? Try inputting your income into this calculator to see your ranking, developed by DQYDJ.com. The income of the top 1% is still growing. Research from EPI shows that wages from 2009-2019 grew 20.4%, while those in the bottom 90% rose at less than half that rate — only 8.7%.
For wider context, EPI also found that when you look at wages from 1979–2019, the top 1% grew by 160.3%, while the bottom 90% saw wages grow only 26% during the same time period.
EPI data, however, showed that earners in the top 10% make substantially less than the top 1%. Those making between 90th and 95th percentiles averaged almost six times less —$129,998 in 2019. Earners inbetween the 95th and 99th percentiles averaged just over three times less —$210,511 in 2019.
State by State
The top 1% also varies depending on what state you live in. For example, in Connecticut, you’d need to pull in $952,902 a year to fall into the top 1%. In Georgia, those numbers are significantly lower, at $585,397 annually to earn a place in the top 1%. In Texas, those numbers are $631,849, while in California it’s $844,266.
You can read our study to better understand how much you would need to earn in the state you reside in order to be considered the top 1%.
Top 1% by Net Worth and Throughout the World
According to a wealth report by Knight Frank, you would need to be worth $5.8 million or more to be in the top 1% of the United States. This puts the United States as the country with the fourth highest number in the world.
What you need to earn throughout the world to be considered part of the 1% in that country will depend on where you live. The three countries that are higher than the U.S. are Monaco, Luxembourg and Switzerland. You would need $12.88 million, $10.83 million or $8.51 million in those countries, respectively.
Bottom Line
To be in the top percentage of earners in the U.S., you’d need to pull in an average of $652,657 a year, but it could be more than that depending on what state you live in. Keep in mind that the average worker in the U.S. earns just $59,384 annually.If you’re looking to grow your wealth substantially, you might benefit from working with a financial advisor.
- Many financial advisors specialize in tuning your portfolio to boost income.Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- You can consider the wealth gap from many perspectives beyond just the raw numbers. Insightful data exists on the gap considered from the perspectives of race, generation and gender.
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FAQs
The top 1% of household net worth in the U.S. was just shy of $13.7 million in 2023. An individual would have to earn an average of $407,500 per year to join the top 1%. A household would need an income of $591,550. The median household income was $74,580 in 2023 and $45,440 for individuals.
What net worth puts you in the top 1% in the US? ›
In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.
What is considered to be in the top 1%? ›
The income of those in the top 1% is many multiples above that of the average American. According to a Congressional Budget Office report, you need at least $652,657 in income per year to make the top 1%, but this varies by where you live.
What percentile is a $3 million net worth? ›
The 95th percentile, with a net worth of $3.2 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, or the 99th percentile, has a net worth of $16.7 million and represents the very wealthy, who enjoy considerable financial freedom and luxury.
What is the net worth of the top 2% USA? ›
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
What net worth is upper class? ›
The upper class has an average net worth of $793,120 to $2.65 million, while the lower class has $16,900. The middle class ranges from $58,550 to $300,800. You can grow your net worth by saving and investing consistently, investing in the stock market, and being careful about taking on debt.
Does net worth include home? ›
Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.
What is the top 5 net worth in the US? ›
The most recent data from the Fed's Survey of Consumer Finances took a snapshot of the American public at the end of 2022. At that point, a net worth of $3,795,000 was enough to put you in the top 5% of all American households.
What is the net worth to be considered wealthy? ›
According to Schwab's 2023 Modern Wealth Survey, its seventh annual, Americans said it takes an average net worth of $2.2 million to qualify a person as being wealthy.
What is considered a good net worth? ›
Determining what your net worth should be at any age can be a bit tricky, and it depends on your income. Say you're 30 years old and your income is $50,000 per year. Your net worth should be $150,000, according to this formula. A $25,000 salary at age 30 would mean an ideal net worth of $75,000.
Specifically, those with over $1 million in retirement accounts are in the top 3% of retirees. The Employee Benefit Research Institute (EBRI) estimates that 3.2% of retirees have over $1 million, and a mere 0.1% have $5 million or more, based on data from the Federal Reserve Survey of Consumer Finances.
What percentage of retirees have $4 million dollars? ›
According to a 2020 working paper from the Center for Retirement Research at Boston College, the top 1% of retirees—which a retiree with $4 million in assets would fall into—can expect to pay about 22.7% in state and federal taxes.
What is a good net worth to retire? ›
The final multiple — 10 to 12 times your annual income at retirement age. If you plan to retire at 67, for instance, and your income is $150,000 per year, then you should have between $1.5 and $1.8 million set aside for retirement.
What is considered wealthy in retirement? ›
Super wealthy (99th percentile): $16.7 million. Wealthy (95th percentile): $3.2 million. Well off (90th percentile): $1.9 million. Middle class (50th percentile): $281,000.
What is the net worth of the top 1% in the US? ›
The top 1% of household net worth in the U.S. was just shy of $13.7 million in 2023. An individual would have to earn an average of $407,500 per year to join the top 1%. A household would need an income of $591,550. The median household income was $74,580 in 2023 and $45,440 for individuals.
What is top 5 percent net worth in us? ›
The most recent data from the Fed's Survey of Consumer Finances took a snapshot of the American public at the end of 2022. At that point, a net worth of $3,795,000 was enough to put you in the top 5% of all American households.
What is the top 1% net worth in 2024? ›
To hold a top 1% net worth in America, according to Knight Frank, a person in 2024 must have a net worth of at least $5.8 million. This amount is at least $7.2 million lower than what the Federal Reserve believes is required to be in the top 1% net worth in America.
How many people have $3 million? ›
There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more.
