You Might Be In The Top 5% If You Have This Income In Your State

Becoming one of the top 5% of income earners in the United States requires knowing what that means based on your home state. If you're single and residing in a state with the highest cost of living for single people, what qualifies as the top 5% will be different from a state where the cost of living is significantly lower. Regionally speaking for instance, according to the Bureau of Labor Statistics, the difference between the lowest to average income, $93,814 in Southern regions and $120,365 in the West, respectively, is as high as $26,551. That's a 22% difference in average incomes, and it demonstrates how potentially far apart the top 5% of incomes could be across all 50 states, especially within certain regions. GoBankingRates research based on data compiled from several sources, including the Missouri Economic and Research Information Center, Zillow, U.S. Census American Community Survey, Bureau of Labor Statistics, and the Federal Reserve, provides an opportunity to create an alphabetical listing of what qualifies as the top 5% of income earners in each state.

According to the most recent Bureau of Labor Statistics 2024 Consumer Expenditures report, the average annual income in the U.S. was $104,207 before taxes, with average expenditures of $78,535. The median average income, as per the United States Census Bureau, may be closer to reality for more Americans at $83,730 in 2024.

According to GoBankingRates, the top 5% of income earners in Alabama earn $388,183 per year in a state where the median state income was $62,027. That's just over six times what the average household earns in a year. According to 2022 individual income returns documented by the Internal Revenue Service (IRS), that represents a total 109,460 taxpayers in Alabama out of 2,116,220 who grossed over $200,000. 

Meanwhile, Alaska's top 5% of earners, as per GoBankingRates, made $477,622 in comparison to the state average of $89,336 per year, or just over five times the state average income. The IRS collected 25,920 tax returns from taxpayers earning $200,000 or more, out of 344,240 tax returns in 2022.

In Arizona, according to the data, the top 5% of income earners earned $461,017 in a state where you need at least $1 million to retire. With an average household income of $76,872, the top earners in the state make six times the average state income. According to the IRS, 226,990 taxpayers out of 3,312,220 reported income of $200,000 or more in 2022. 

Finally, as per GoBankingRates data, Arkansas, the cheapest U.S. state to live in is not considered the best, has a median household income of $58,773. The top 5% of income earners make $364,124, an amount just over six times the state average. IRS records show that, out of 1,272,110 tax returns in 2022, 59,210 taxpayers claimed income of $200,000 or more.

Jumping to the "C" states, California, as per GoBankingRates, has its top 5% of income earners making $619,938 annually, almost 6 ½ times the state median household income of $96,334 per year. Earning enough income in California to become the upper class is challenging enough. According to the IRS however, 1,932,380 tax returns in 2022 show taxpayers earning $200,000 plus. That's out of 18,147,120 tax returns filed in 2022.

The GoBankingRates study found that Colorado's top 5% of income earners make $535,056 per year against the $92,470 State median household income. With, as per the IRS, 2,923,860 tax returns filed in 2022, there were 281,150 tax returns filed with incomes of $200,000 or more.

The last C-state, Connecticut, as per GoBankingRates, has its top 5% of income earners pulling in $637,673 per year in comparison to the state median household income of $93,760. As per the IRS, out of 1,797,180 tax returns filed in 2022, just 196,500 returns claimed income of $200,000 or more. 

Delaware, according to GoBankingRates data, has the top 5% of income earners there making $477,949 versus the state median household income of $82,855. IRS 2022 tax return records show that out of 497,210 tax returns filed, there were 35,560 returns claiming income of $200,000 or more. GoBankingRates also found that Florida, Georgia, and Hawaii's top 5% of income earners make $499,872, $467,103, and $505,977 per year, respectively, compared to their state median household income numbers of $71,711, $74,664, and $98,317, respectively. 

According to 2022 tax return records from the IRS, there were 10,911,940 tax returns collected in Florida, out of which 805,210 returns came from taxpayers earning $200,000 or more. In Georgia, IRS records show 338,330 tax returns with incomes of $200,000 or more compared to 4,847,010 total returns, while IRS records for Hawaii show that out of 674,660 tax returns filed in 2022, 44,330 came from taxpayers earning $200,000 plus. If that seems like a lot of high earners by comparison, keep in mind how much you would need to save every month to retire in Hawaii, and who could actually afford to live there.

Idaho, according to GoBankingRates, has a state median income of $74,636. The top 5% of income earners in the state earn $418,188 per year. That represents a difference of just over five and a half times the median income in Idaho. The data goes on to note Illinois' state median income is $81,702, with the average income for the top 5% of earners landing at $514,347. Meanwhile, GoBankingRates shows the top 5% of income earners in Indiana earn $393,813 compared with the state median household income of $70,051. Last up in the "I" category, is Iowa which, as per GoBankingRates, has a median state income of $73,147 per year representing an income over five times less than the average $400,534 income of the top 5% of income earners.

According to 2022 IRS records, there were 52,000 taxpayers in Idaho who claimed $200,000 or more in income in 2022, out of 854,020 taxpayers income earners. In Illinois, IRS records reveal 495,720 taxpayers with incomes over $200,000 out of 6,030,260 tax filers. In Indiana, as per the IRS, there were 164,890 taxpayers who earned $200,000 plus versus 3,202,280 taxpayers, while in Iowa, IRS records show 83,900 taxpayers claimed filed $200,000 or more in income versus 1,463,980 tax returns.

In Kansas, as per GoBankingRates, the top 5% of income earners in the state made $398,469 to the median state income of $72,639. As per 2022 IRS records, that top 5% would have been a portion of the 84,430 tax returns filed with incomes of $200,000 or above, out of the 1,340,680 returns filed.

 As per the GoBankingRates data, aside from being the location of one of the best towns for retirement, Kentucky has a median state income of $62,417. The top 5% of income earners in Kentucky earned $372,886, an amount almost six times the state median. 2022 IRS tax return filings show that, out of 1,944,780 tax returns, 88,530 were from individuals who earn $200,000 or more.

 Looking at the "L" state on this list, Louisiana's top 5% of income earners, as per GoBankingRates, earn $389,605 to the state's median income of $60,023. Tax return filings from 2022, as per the IRS, show that there were 100,260 tax returns filed showing income of $200,000 or more out of 1,937,150 returns filed that year.

The "M" states start off in Maine with, as per the GoBankingRates study, the average income for the top 5% of income earners is $415,677. By comparison, the state median household income is $71,773. Maryland's top 5% of income earners earned $522,117 compared to the median state household income of $101,652. In 2025, Massachusetts was one of the best states to live in with the second-highest cost of living. It stands to reason that the average income of the top 5% of income earners would be higher than most states on this list at $619,385. The state median income is $101,341, or around six times lower than the top 5% of income earners in the state. The over $200,000 difference between Maine and Massachusetts' top 5% demonstrates how the cost of living in each state impacts what's considered the top percentile of income. Michigan's top 5% of income earners enjoy an average income of $409,636 versus the household state median of $71,149, while Minnesota, Mississippi, Missouri, and Montana's top 5% of income earners earn $496,581, $344,395, $410,472, and $420,968, respectively. 

IRS records from 2022 demonstrate the sliver of taxpayers in each state where the top 5% of income owners are represented. For instance, out of 697,740 tax returns collected in Maine, 37,990 were from taxpayers with incomes of $200,000 or more. In Maryland, out of 3,054,110 tax returns, the upper class made up 297,820, reporting incomes of $200,000 or more. 

According to GoBankingRates, the top 5% of income earners in Nebraska and Nevada earn $471,960 and $460,558, respectively. The top 5% of income earners in New Hampshire earned $510,730, while the top 5% of income earners in New Jersey earned $616,334. With the cost of living in New Jersey's most expensive suburb, it makes sense that New Jersey's top 5% would be earning the top five highest income amounts in that cohort. The GoBankingRates data also found that New Mexico and New York's top 5% of income earners generated $378,797 and $619,178, respectively. Finally, North Carolina's top 5% of income earners earned $443,291, while North Dakota's top 5% earned $399,162.

According to the IRS 2022 records, 56,500 tax returns filed out of Nebraska's 926,500 taxpayers showed incomes of $200,000 or greater. For the same period In Nevada, there were 95,390 tax returns with incomes of $200,000 or more versus 1,523,210 tax returns filed that year. For New Hampshire, New Jersey, New Mexico, and New York, the IRS recorded 69,080 tax returns out of 723,020 with incomes of $200,000 or more, 531,000 tax returns out of 4,574,860; 43,130 tax returns out of 963,220; and 833,920 out of 9,597,940 tax returns with incomes of at least $200,000. North Carolina and North Dakota recorded 344,550 tax returns out of a total 4,867,790, and 25,350 tax returns out of a total 362,520 with incomes of at least $200,000. 

According to the GoBankingRates data, the top 5% of income earners in Ohio earned $417,374 in a state where the median household income is $69,680. As per the IRS, 303,430 tax returns in Ohio reported income of at least $200,000 out of 5,625,160 total returns in 2022. The data also shows that the top 5% of income earners in the states of Oklahoma and Oregon earned $392,351 and $464,386, respectively. 

As per the IRS, out of 1,678,230 tax returns filed in 2022 in Oklahoma, 84,170 showed incomes of at least $200,000. In Oregon, the number of tax returns showing incomes of $200,000 or more were 147,990 out of a total 1,997,850. Pennsylvania and Rhode Island's top 5% of income earners, as per the GoBankingRates study, earned $468,603 and a slightly higher $489,811. According to IRS records, out of Pennsylvania's 6,234,950 tax returns filed in 2022, 449,380 came from taxpayers earning $200,000 or more. For Rhode Island, the number of tax returns showing income of $200,000 or greater was 39,910 versus the total 559,830 returns filed in 2022.

GoBankingRates found that South Carolina's top 5% of income earners made $419,871. The value of $100 if you live in South Carolina aside, the state household median income is $66,818, or over six times less than the annual earnings of the top 5% in South Carolina. South Dakota's top 5% earn an average $452,480 per year against a state median household income of $72,421, an amount over six times the state household median income in one of the best places to live in for affordability. 

In 2022, the IRS collected a total of 2,445,530 tax returns from South Carolina, with 142,560 of those reflecting incomes greater than $200,000. In South Dakota, IRS records show that out of 433,640 tax returns, there were 26,170 tax returns showing income of $200,000 or more, of which the top 5% of income earners would be a part. Interestingly, although the population numbers are vastly different, the difference between the top 5% of income earners in South Carolina and South Dakota aren't, with only a difference of around $32,609.

The "T" states Tennessee and Texas, according to GoBankingRates, have their fair share of five percenters. Tennessee comes in 29th place for top 5% of income earners, with an average $435,495. By comparison, the state household median income is $67,097, of which the top 5% on income earned is over six times greater than. A difference in income that great is a sign you've made it to the upper class. Texas' top 5% of income earners earn an average of $494,328 to the state median income of $76,292. 

Ironically, the difference between Tennessee's and Texas' state median household income and the incomes of the top 5% of income earners are almost equivalent. The lone "U" state, Utah, has its top 5% of income earners making $468,606 per year, while the state median income is $91,750. That said, there are scenic towns in Utah with a cost of living way below the national average that won't require you to be among the upper class. 

Vermont, as per the GoBankingRates study, has a state median household income of $78,024. The top 5% of income earners, however, made $453,461. This state has the highest rates of homeownership, and with houses also being assets that are signs of being upper class, you can rest assured the top 5% of income earners are doing their part to drive that momentum. Virginia's state median household income is $90,974. Not to be outdone, the state's top 5% of income earners are in the top 10 of the highest incomes paid in that percentile with the top 5% of earners making an average of $534,776 per year.

According to IRS records, out of a total 330,580 tax returns filed in Vermont in 2022, 19,950 of those returns claimed income at least $200,000 or greater. For the same tax year in Virginia, a total 411,030 tax returns showed income of $200,000 or more as part of a total 4,108,450 tax returns received from the state.

The GoBankingRates "W" grouping of states shows Washington's top 5% of income earners earned $573,110 in a state where the state median household income is $94,952. The top 5% earned just over six times the state median income. The data shows West Virginia's top 5% of income earners earned the least out of all 50 states with $330,270. The state median household income is also the lowest however, at $57,917. That this state with the highest rate of homeownership but is also considered the worst to live in may have a lot to do with these last place rankings. Wisconsin, according to the data collected by GoBankingRates, has a state median household income of $75,670. For the top 5% of income earners in the state the average income is more like $418,095. Finally, the top 5% of income earners in Wyoming earn $400,071 compared to the state median household income of $74,815.

According to the IRS, out of 3,705,170 tax returns collected in 2022 for Washington, 423,160 returns recorded incomes of $200,000 or more. In West Virginia for the same period, 26,660 tax returns showed incomes of $200,000 or greater compared to a total of 764,090 tax returns. Wisconsin IRS records show 170,730 out of 2,902,800 tax returns claimed at least $200,000 in income, while out of 275,130 tax returns in Wyoming, 17,390 reported incomes of $200,000 plus.