How much do I have to earn in California to be considered rich? New study breaks it down
How rich is rich in California?
As of 2022, the top 5% of earners in the state made $613,602 a year on average, according to a recent analysis from personal finance site GoBankingRates.
That’s roughly a 37% increase from 2017, when top earners raked in an average annual income of $447,207.
Washington took the top spot in the United States with a 43.9% increase in average annual income for top earners between 2017 and 2022, followed by Nevada with 40.4%, Idaho with 40.3% and South Carolina with 37.6%.
The Golden State ranked fifth.
“Over the five-year period of 2017 through 2022, wealth has changed significantly across most U.S. states,” GoBankingRates senior finance writer Heather Taylor wrote in an April 25 article titled “Here’s How Much the Definition of Rich Has Changed in Every State.” “The median income may be $500,000 or more for those in the top 5% depending on where you live.”
In 2017, Connecticut and Washington D.C. were the only U.S. states whose top 5% made a median annual income of at least $500,000.
That list has grown over the past five years to include 10 other states, such as California, Colorado, Hawaii and Washington state.
Also on the list are Illinois, Maryland, Massachusetts, New Jersey, New York and Virginia.
How did GoBankingRates analysis come up with data?
GoBankingRates used data from the U.S. Census Bureau to analyze each state’s median income, the average income of its top 20% of earners and the average income of its top 5% of earners.
Also examined was the five-year change in average income of the top 20% of earners.
North Dakota had the lowest five-year percentage increase in average income for top earners at 14.68%.
Which states are in the top 10 for income increases?
Here are the top 10 states that saw the largest percentage increase in average income for top earners between 2017 and 2022:
Washington
2017 average income: $378,374
2022 average income: $544,518
Five-year change: 43.9%
Nevada
2017 average income: $320,403
2022 average income: $449,872
Five-year change: 40.41%
Idaho
2017 average income: $286,974
2022 average income: $402,743
Five-year change: 40.34%
South Carolina
2017 average income: $296,503
2022 average income: $408,138
Five-year change: 37.65%
California
2017 average income: $447,207
2022 average income: $613,602
Five-year change: 37.21%
Utah
Five-year change: 36.96%
2017 average income: $463,437
2022 average income: $338,384
Oregon
2017 average income: $329,517
2022 average income: $448,649
Five-year change: 36.96%
Arkansas
2017 average income: $277,187
2022 average income: $377,043
Five-year change: 36.02%
Montana
2017 average income: $302,605
2022 average income: $411,205
Five-year change: 35.89%
Nebraska
2017 average income: $302,217
2022 average income: $407,646
Five-year change: 35.77%
Which U.S. state is home to the richest people?
Overall, Connecticut’s top 5% earners made the most money in 2022 compared to those in other U.S. states, with an average median annual income of $656,438.
In 2017, its top 5% made $127,071 less each year.
New York’s top 5% trailed closely behind, with an average median annual income of $621,301.
Massachusetts, New Jersey and California also had an average median annual income of at least $600,000.
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