Are You in the Top 1%?

The term “top 1%” typically refers to the top 1% wealthiest Americans, as measured by annual income or net worth. The top 1% earn many times more than the typical American. According to a SmartAsset study, you need at least $731,492 in annual income to be among the top 1% in 2025, but this varies by where you live. ¹

Making six figures may not be within the reach of some people, but a financial advisor can help you build a financial plan for the future.

What Is a Top 1% Income?

Using IRS data from 2022 and adjusting it for inflation, SmartAsset calculated that the top 1% in the U.S. starts at $731,492. By comparison, the median household income in the U.S. was $83,730 in 2024, according to data from the Federal Reserve Bank of St. Louis. ²

Want to see where you fall? Try inputting your income into this calculator to see your ranking, developed by DQYDJ. The income of the top 1% is still growing. Research from the Economic Policy Institute shows that the earnings of people in the top 1% grew 20.4% from 2009 to 2019, while those in the bottom 90% rose only 8.7%. ³

EPI data shows that from 1979 to 2019, wages for the top 1% grew by 160.3%, while the bottom 90% saw just 26% growth.

EPI data, however, showed that earners in the top 10% make substantially less than the top 1%. Those in the 90th to 95th percentiles earned an average of $129,998 in 2019, which is nearly six times less than the top 1%. Earners in the 95th to 99th percentiles averaged $210,511 in 2019, or just over three times less than the top 1%.

Top 1% Income by State

The top 1% also varies depending on what state you live in. For example, in Connecticut, you’d need to earn $1,056,996 per year to be among the top 1%. That’s highest in the nation, according to the SmartAsset study. In Georgia, that number is significantly lower, at $662,821 annually to earn a place in the top 1%. In Texas, you’ll need to earn $743,955 per year to be considered part of the state’s top 1%, while in California it’s $905,396 (third highest). Massachusetts has the second highest income floor for the 1% at $965,170.

You can read our study to see how much you need to earn in your state to reach the top 1%.

How Many People Are in the Top 1%?

Only 1.5 million American households, or a small fraction of taxpayers, had enough income in 2022 to be considered part of the 1%. It’s no surprise that California, the nation’s most populous state, had the highest number of households in the 1% (175,045).

Income vs. Net Worth: Two Different Ways to Define the Top 1%

Being in the top 1% by income is not the same as being in the top 1% by net worth. Income measures how much you earn in a given year, while net worth reflects the total value of what you own minus what you owe. A household can rank in the top 1% by income without having a top 1% level net worth, and vice versa.

For example, a highly paid professional earning $800,000 per year may qualify for the top 1% by income but still be in the early stages of building wealth if much of that income goes toward taxes, housing and lifestyle expenses. On the other hand, a household with $10 million in net worth could fall outside the top 1% of income if much of its wealth is tied up in investments that generate modest taxable income.

What Is the Top 1% Net Worth in the U.S.?

Net worth thresholds of the top 1% vary depending on the source. For example, the 2024 Wealth Report by Knight Frank found that the 1% in the U.S. started at a net worth of $5.8 million. ⁴

While the 2025 edition of the same report doesn’t offer an updated net worth figure, it does shed light on the number of ultra-wealthy households there are in the U.S. At 905,413, the country has nearly twice the number of households worth $10 million or more than China, which has the second most of any country. In fact, the U.S. is home to nearly 39% of all of the ultra-high-net worth households in the world. ⁵

Meanwhile, DQYDJ estimates that the top 1% starts for households with a net worth of at least $13.66 million. ⁶

Zooming out, numbers from the Federal Reserve Bank of St. Louis show that the top 1% in the U.S. continue to amass a larger percentage of the total wealth in the country. According to Federal Reserve Economic Data (FRED) from the third quarter of 2024 (the most recent data available in March 2025), the top 1% controlled $49.2 trillion or 30.8% of the total wealth in the U.S. Thirty-five years earlier, the top 1% held just 22.8%, according to FRED.

Top 1% by Net Worth and Throughout the World

Bottom Line

In the U.S., reaching the top 1% requires earning at least $731,492 annually, though the threshold varies by state. Keep in mind that the median household income in the U.S. earns just $80,000 annually. If you’re looking to grow your wealth substantially, you might benefit from working with a financial advisor.

Tips for Investing

• 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 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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