What Annual Income Gets You Into the Top 1 Percent Across US States in 2025

Achieving top 1 percent income status varies dramatically depending on where you live. Based on IRS tax data from 2022 adjusted to current 2025 dollars, only three states allow individuals to reach the highest earner bracket with less than $500,000 in annual income—a stark illustration of regional wealth inequality.

The Income Gap Between States

To understand what it takes to break into the top 1 percent income tier, we analyzed IRS filings and applied inflation calculations through the Bureau of Labor Statistics CPI converter. The results reveal significant disparities: Connecticut demands $1,102,674 annually for top 1 percent status, while Mississippi requires just $458,471.

The most affordable entry points to elite earner status cluster in lower-cost regions. West Virginia ($434,301), Mississippi ($458,471), and Kentucky ($517,727) represent the minimum thresholds. Indiana requires $554,293 in 2025 dollars—roughly in the middle range—placing it above the national accessibility floor but well below high-income states like California and New York.

High-Income States Set the Bar Higher

The wealthiest states impose substantially steeper requirements. Connecticut tops the list at $1,102,674, followed by Massachusetts at $1,006,879 and California at $944,522. New York ($930,173), New Jersey ($940,022), and Florida ($896,519) round out the six states requiring nine-figure thresholds.

These elevated requirements reflect not just higher average incomes but also concentrated wealth and cost-of-living pressures that inflate income expectations for top earners.

The Inflation Effect: 2022 to 2025

Comparing 2022 figures to inflation-adjusted 2025 values shows consistent increases averaging 13%. For context, Indiana’s threshold rose from $490,566 to $554,293—a $63,727 jump driven entirely by inflation erosion.

This trend highlights how currency devaluation continuously resets wealth goalposts. Someone earning $500,000 today doesn’t retain the same purchasing power as that same earner possessed three years ago.

Regional Patterns and Geographic Clustering

Midwest and Southern states generally maintain lower top 1 percent income requirements, with Indiana, Iowa ($577,988), and Illinois ($762,800) showing moderate thresholds. Meanwhile, coastal regions and tech hubs demand significantly more to achieve top-tier earner status.

States without income taxes (like Texas at $776,105, Florida at $896,519, and Wyoming at $804,703) paradoxically still show substantial variation, suggesting that tax policy alone doesn’t determine income distribution patterns.

What This Means for High Earners

The data underscores a critical reality: becoming a top 1 percent earner remains highly geographically dependent. Whether you’re in Indiana working toward that $554,293 threshold or pursuing California’s $944,522 requirement, regional economic structures fundamentally shape what “success” financially looks like.

For those tracking their position relative to peers, these numbers provide a definitive benchmark tied to actual federal tax records—making them far more reliable than speculative wealth estimates.

Data source: IRS tax records from the 2022 season, adjusted to 2025 dollars using Bureau of Labor Statistics CPI inflation calculator. Analysis current as of February 2025.