• You need to make over $650,000 to be considered in the top 1%, according to new data.
  • Connecticut, Massachusetts, and California had the highest earnings thresholds.
  • Most states had a higher income floor this year than last year, though New York stayed stagnant.

You need to make nearly three times more money in Connecticut than in West Virginia to be in the top 1%.

New data released Thursday from financial information company SmartAsset broke down how much money people need to make to be among the top 1% of highest earners in each state. This data, which was pulled from the IRS and Bureau of Labor Statistics, found that slightly over $650,000 is the national benchmark to be considered in the top 1%.

According to the Congressional Budget Office, the top 1% of families hold over a third of the nation's wealth. The bottom half of households, on the other hand, hold just 2%.

This map shows how much you need to make in each state to break into this elite demographic.

Connecticut led the nation with an income of just over $950,000, followed by Massachusetts and California, in contrast to around $367,000 in West Virginia. The states with the highest floor for the top 1% were concentrated predominantly in the Northeast and the West, with Southern states have the lowest thresholds.

Most states had a higher threshold this year than in 2022, though New York stayed around the same at around $777,000.

Jaclyn DeJohn, SmartAsset's managing editor of economic analysis, told Bloomberg this drastic variation was due to differences in tax filing procedures, movement of high-earners, and income changes.

Americans across the wealth spectrum have felt the impact of higher prices over the last few years, though inflation has continued to dramatically cool. New Consumer Price Index data from the Bureau of Labor Statistics reported a year-over-year CPI reading of 3.0%, just above the Federal Reserve's 2% target.

A news release from the Bureau of Labor Statistics on Wednesday further revealed real average hourly earnings rose by 0.2% month over month in June.

The amount Americans say they need to feel wealthy is also rather high. A Bankrate survey from last week found Americans felt on average they needed to make $483,000 a year to "be rich and achieve financial freedom."

According to a June survey of 1,000 Americans by Logica Research for financial services company Charles Schwab, respondents said on average, $2.2 million in personal net worth would qualify as wealthy.

Read the original article on Business Insider