Malcolm Rivera
Being in the top 1% of earners in the US requires an annual salary of at least $400,000 to $1 million or more, depending on the state. This figure varies by state and local wage trends, with West Virginia having a lower threshold of $420,000 to $435,302, while California and Connecticut require seven-figure salaries. The top 1% of households have a minimum net worth of around $11.1 million to $13.7 million, which has increased over time. This group owns over 50% of equity shares in private and public companies, contributing to the growing income disparity.
| Characteristics | Values |
|---|---|
| Average net worth | $13.7 million |
| Minimum net worth | $11.1 million |
| Average annual income | $407,500 |
| Mean household income | $591,550 |
| Mean income in West Virginia | $435,302 |
| Mean income in Alabama | $430,000 |
| Mean income in Connecticut | $900,000 |
| Mean income in California | $1 million+ |
| Share of nation's wealth in 1989 | 23% |
| Share of nation's wealth in 2018 | 32% |
| Share of nation's wealth in 2024 | 23.3% |
| Share of wages in 1979 | 7.3% |
| Share of wages in 2021 | 14.6% |
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What You'll Learn
- The minimum net worth of the top 1% of households is $13.7 million
- The top 1% of earners in the US make at least $597,815 annually
- The top 1% threshold varies by state, from $420,000 to over $1 million
- The top 1% of Americans own over 50% of equity shares in companies
- The top 1% of earners' wages grew by 172% from 1979 to 2022
The minimum net worth of the top 1% of households is $13.7 million
The top 1% of the world's wealthiest households have a minimum net worth of $13.7 million. This figure has grown significantly over the past few decades. The top 1% segment of the population owns large portions of major corporations, multibillion-dollar investment funds, Caribbean islands, and even spacecraft.
The minimum net worth of $13.7 million for the top 1% of households is significantly higher than the average citizen's net worth. This disparity has been growing, with the top 1% steadily increasing their share of the nation's wealth. From 1989 to 2018, the share of wealth held by the top 1% in the U.S. increased from 23% to nearly 32%. By 2024, the top 1% held 23.3% of the nation's wealth, nearly three times as much as the 8.1% held by the middle 40-60% of U.S. households.
Income is another factor that distinguishes the top 1%. While the minimum net worth of $13.7 million may be out of reach for most, some individuals can join the top 1% through exceptionally high incomes. The income required to be in the top 1% varies depending on location, with some states having a higher threshold than others. For example, in West Virginia, an income of around $420,000 to $435,302 is enough to be in the top 1%, while in California or Connecticut, a seven-figure salary is required. According to one source, the average individual income required to join the top 1% is $407,500 per year, while a household would need an income of $591,550. Another source places the individual income threshold at $597,815 per year.
The wealth and income disparities between the top 1% and the rest of the population have significant implications. The top 1% benefits from tax breaks, such as the exemption of the first $13.99 million of an estate from taxes as of 2025, which allows them to retain a larger portion of their assets. Additionally, the growing disparity in wages between the top 1% and the bottom 90% contributes to income inequality.
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The top 1% of earners in the US make at least $597,815 annually
The income required to be in the top 1% in the US has increased over time. Between 1979 and 2022, the wages of Americans in the top 1% of earners grew by 172%, compared to a 33% increase for the bottom 90% of earners. This disparity is partly due to the steady flow of tax breaks for income, gifts, and estate taxes, which disproportionately benefit the wealthy. Additionally, the top 1% of earners in the US have seen their share of the nation's wealth increase from 23% in 1989 to nearly 32% in 2018.
The wealth of the top 1% comes from various sources, including stock ownership and executive compensation. They tend to own more than 50% of the equity shares in private and public companies, making them vulnerable to stock price declines but also providing opportunities for reinvestment in hedge funds and private equity ventures. The minimum net worth of the top 1% of households is estimated to be around $11.1 million to $13.7 million, with an average of $13.7 million.
It's important to distinguish between income and wealth when discussing the top 1%. Income refers to the annual earnings, while wealth represents the assets owned, such as savings, investments, and property. High earners often possess significant assets, but this is not always the case, as some individuals may have their wealth tied up in illiquid assets, resulting in relatively lower incomes.
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The top 1% threshold varies by state, from $420,000 to over $1 million
The amount of money required to be in the top 1% varies depending on location and local wage trends. In West Virginia, an income of $420,000 to $435,302 is enough to be in the top 1%, whereas in California or Connecticut, a seven-figure salary is required. In Alabama, the top 1% of earners make about $430,000 or more annually, while in Connecticut the figure is closer to $900,000. In some states, the threshold for the top 1% exceeds $1 million.
According to SmartAsset, the threshold to be in the top 1% of earners in the US as a whole is nearly $788,000. Another source suggests that to be in the top 1% of earners in the US, an annual salary of at least $597,815 is required. This means that 99% of earners in the US make less than this amount per year.
The minimum net worth of the top 1% of households is estimated to be roughly $13.7 million, with a minimum net worth of around $11.1 million for the top 1% of Americans. An individual would need to earn an average of $407,500 per year to join the top 1%, while a household would need an income of $591,550.
The top 1% of earners in the US has seen a significant increase in their share of the nation's wages over time. In 2021, the top 1% earned 14.6% of all wages, which is twice as high as their 7.3% share in 1979. During the same period, the bottom 90% of earners experienced a much smaller increase in their share of wages, receiving 58.6% of all wages in 2021 compared to 69.8% in 1979.
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The top 1% of Americans own over 50% of equity shares in companies
The amount of money that constitutes being in the top 1% varies depending on location and local wage trends. For example, in West Virginia, an income of $420,000 to $435,302 is enough to be considered part of the top 1%, whereas in California or Connecticut, you would need to earn seven figures. In 2024, the average wealth of households in the top 1% was about $35.5 million, with an average income of $785,968.
The top 1% has seen their wealth grow at a much faster rate than the rest of the population. Between 1979 and 2022, their wages grew by 172%, compared to 33% for the bottom 90%. The top 1% earned 14.6% of all wages in 2021, up from 7.3% in 1979.
This wealth inequality is also reflected in the stock market. The top 1% of Americans own over 50% of equity shares in companies, with a value of over $16 trillion in 2021. In contrast, the bottom 50% of Americans own just 1% of stocks, worth approximately $480 billion. The wealthiest 10% of Americans hold a record 93% of US equities, according to Federal Reserve data from 2024.
The concentration of wealth among the top 1% has led to concerns about income inequality and the need for policies to address this gap.
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The top 1% of earners' wages grew by 172% from 1979 to 2022
The amount of money required to be in the top 1% varies depending on location and local wage trends. In West Virginia, an income of \$435,302 is enough to be in the top 1%, while in states like California, Connecticut, Massachusetts, New Jersey, and Washington, the top 1% earners make over \$1 million per year. According to SmartAsset, the average for the whole of the US is \$788,000.
Between 1979 and 2022, the top 1% of earners saw their wages grow by 172%, while the bottom 90% of earners experienced a more modest wage growth of 33%. This disparity in wage growth reflects a long-term upward redistribution of wages from the bottom 90% to the top 1%. According to the Economic Policy Institute (EPI), the top 1% earned twice as much in 2021 as they did in 1979, while the bottom 90% saw their share of wages decrease over the same period.
The pace of income disparity between the highest and lowest earners has been striking, with the wealthiest Americans growing richer much faster than the rest of the population. This trend is also observed in the top 0.1% of earners, who have experienced even more significant wage growth than the top 1%.
While income inequality has become a major political issue, it is important to note that lower-income Americans have also been earning more, especially in recent years. Policies implemented during the pandemic aided lower-paid workers, resulting in relatively robust wage growth between 2019 and 2023.
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Frequently asked questions
The amount varies by location and local wage trends. In 2020, the threshold to be in the top 1% of earners in Georgia was an annual income of $501,914. In California, the threshold was $659,503. In 2024, the threshold in West Virginia was $435,302, while in California and Connecticut, you would need a seven-figure salary. According to one source, the minimum income to be in the top 1% in the US is $597,815. Another source states that you would need to earn nearly $788,000.
In Switzerland, you would need to have a wealth of $8.5 million or more. In Monaco, you would need a net worth of $12.9 million. In Germany, France and the UK, you would need over $3 million. In Japan, you would need $2 million in assets. In China, $1.1 million was enough to be considered part of the top 1% in 2023.
The top 1% of households hold 30.3% of the total wealth, according to the Federal Reserve. The top 0.1% own 13.5% of the total wealth, with an average of more than $158 million per household. The average wealth of households in the top 1% was about $35.5 million. The top 1% of earners make almost nine times the median income in the US.
The wealth of the top 1% is often correlated with high earnings, but this is not always the case. High earners may spend a lot and therefore not hold as many assets. As individuals move up the scale, they are more likely to have unearned income, such as dividends and capital gains.
