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Income Thresholds for America’s Top 5% Households by State

To rank among the top 5% of households in the U.S. by income, a household needs to earn at least $330,000 annually, based on an analysis by GOBankingRates using Census data. However, in 12 states, the income required to reach this elite group is significantly higher, surpassing $500,000 per year.

The analysis ranks states by the average income of their top 5% of households, with Connecticut leading at $637,673—over seven times the state’s median household income of $93,760.

Other high-ranking states include California, Massachusetts, New York, and New Jersey, all with top 5% incomes exceeding $600,000. These figures reflect the concentration of high-earning professionals and wealthier populations in these states.

In contrast, West Virginia has the lowest threshold for the top 5%, with an average of $330,270—still far above the state’s median of $57,917 but only about half of what top earners make in states like Connecticut.

States Where Top 5% Households Earn Over $500,000

The following states have an average top 5% household income exceeding $500,000:

• Connecticut: $637,673

• California: $619,938

• Massachusetts: $619,385

• New York: $619,178

• New Jersey: $616,334

• Washington: $573,110

• Colorado: $535,056

• Virginia: $534,776

• Maryland: $522,117

• Illinois: $514,347

• New Hampshire: $510,730

• Hawaii: $505,977

Here’s a full list:

• Alabama

  • Average household income for top 5%: $388,183

  • Median household income: $62,027

• Alaska

  • Average household income for top 5%: $477,622

  • Median household income: $89,336

• Arizona

  • Average household income for top 5%: $461,017

  • Median household income: $76,872

• Arkansas

  • Average household income for top 5%: $364,124

  • Median household income: $58,773

• California

  • Average household income for top 5%: $619,938

  • Median household income: $96,334

• Colorado

  • Average household income for top 5%: $535,056

  • Median household income: $92,470

• Connecticut

  • Average household income for top 5%: $637,673

  • Median household income: $93,760

• Delaware

  • Average household income for top 5%: $477,949

  • Median household income: $82,855

• Florida

  • Average household income for top 5%: $499,872

  • Median household income: $71,711

• Georgia

  • Average household income for top 5%: $467,103

  • Median household income: $74,664

• Hawaii

  • Average household income for top 5%: $505,977

  • Median household income: $98,317

• Idaho

  • Average household income for top 5%: $418,188

  • Median household income: $74,636

• Illinois

  • Average household income for top 5%: $514,347

  • Median household income: $81,702

• Indiana

  • Average household income for top 5%: $393,813

  • Median household income: $70,051

• Iowa

  • Average household income for top 5%: $400,534

  • Median household income: $73,147

• Kansas

  • Average household income for top 5%: $398,469

  • Median household income: $72,639

• Kentucky

  • Average household income for top 5%: $372,886

  • Median household income: $62,417

• Louisiana

  • Average household income for top 5%: $389,605

  • Median household income: $60,023

• Maine

  • Average household income for top 5%: $415,677

  • Median household income: $71,773

• Maryland

  • Average household income for top 5%: $522,117

  • Median household income: $101,652

• Massachusetts

  • Average household income for top 5%: $619,385

  • Median household income: $101,341

• Michigan

  • Average household income for top 5%: $409,636

  • Median household income: $71,149

• Minnesota

  • Average household income for top 5%: $496,581

  • Median household income: $87,556

• Mississippi

  • Average household income for top 5%: $344,395

  • Median household income: $54,915

• Missouri

  • Average household income for top 5%: $410,472

  • Median household income: $68,920

• Montana

  • Average household income for top 5%: $420,968

  • Median household income: $69,922

• Nebraska

  • Average household income for top 5%: $471,960

  • Median household income: $74,985

• Nevada

  • Average household income for top 5%: $460,558

  • Median household income: $75,561

• New Hampshire

  • Average household income for top 5%: $510,730

  • Median household income: $95,628

• New Jersey

  • Average household income for top 5%: $616,334

  • Median household income: $101,050

• New Mexico

  • Average household income for top 5%: $378,797

  • Median household income: $62,125

• New York

  • Average household income for top 5%: $619,178

  • Median household income: $84,578

• North Carolina

  • Average household income for top 5%: $443,291

  • Median household income: $69,904

• North Dakota

  • Average household income for top 5%: $399, personally identifiable information162

  • Median household income: $75,949

• Ohio

  • Average household income for top 5%: $417,374

  • Median household income: $69,680

• Oklahoma

  • Average household income for top 5%: $392,351

  • Median household income: $63,603

• Oregon

  • Average household income for top 5%: $464,386

  • Median household income: $80,426

• Pennsylvania

  • Average household income for top 5%: $468,603

  • Median household income: $76,081

• Rhode Island

  • Average household income for top 5%: $489,811

  • Median household income: $86,372

• South Carolina

  • Average household income for top 5%: $419,871

  • Median household income: $66,818

• South Dakota

  • Average household income for top 5%: $452,480

  • Median household income: $72,421

• Tennessee

  • Average household income for top 5%: $435,495

  • Median household income: $67,097

• Texas

  • Average household income for top 5%: $494,328

  • Median household income: $76,292

• Utah

  • Average household income for top 5%: $468,606

  • Median household income: $91,750

• Vermont

  • Average household income for top 5%: $453,461

  • Median household income: $78,024

• Virginia

  • Average household income for top 5%: $534,776

  • Median household income: $90,974

• Washington

  • Average household income for top 5%: $573,110

  • Median household income: $94,952

• West Virginia

  • Average household income for top 5%: $330,270

  • Median household income: $57,917

• Wisconsin

  • Average household income for top 5%: $418,095

  • Median household income: $75,670

• Wyoming

  • Average household income for top 5%: $400,071

  • Median household income: $74,815

High-income thresholds in states like Connecticut and California are driven by factors such as robust job markets in finance, technology, and healthcare, as well as higher costs of living.

Urban centers like New York City and San Francisco attract high earners, inflating state averages. In contrast, states like West Virginia, with lower costs and less economic diversification, have lower thresholds.

Implications for Wealth Distribution

The gap between the top 5% and median incomes highlights significant wealth inequality. In high-income states, the top 5% earn 6–7 times the median, while in states like West Virginia, the ratio is closer to 5.7. This disparity underscores varying economic opportunities and cost-of-living pressures across the U.S.

Cost of Living Considerations for Retirees

The income needed to be in the top 5% varies not only by state but also by lifestyle expectations.

Retirees in states like California or New York face higher costs for healthcare, housing, and taxes, which can erode even substantial incomes. For example, in Connecticut, the high income threshold reflects elevated property taxes and healthcare costs, critical factors for retirees. In contrast, states like West Virginia offer lower living costs, allowing retirees to maintain a high relative income with less.

You should look at these factors when deciding where to live.

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