Here's how much income it takes to be considered rich in your state

Many Americans aspire to subordinate nan ranks of nan wealthy, but nan income period for being considered rich | depends a batch connected wherever you live. 

It besides takes considerably much income to subordinate nan apical 5% of earners than conscionable a fewer years ago, according to caller research from GoBankingRates.com, which examined authorities income information for nan five-year play from 2017 to 2022. The second twelvemonth represents nan astir caller family income information from nan U.S. Census Bureau. 

The easiest spot to scope nan apical of nan heap is West Virginia, wherever an yearly income of $329,620 will suffice you arsenic among its highest earners. But you'll person to gain much than doubly that, astatine $719,253, to subordinate nan apical 5% successful Washington D.C. 

Americans' fortunes person improved during nan past fewer years, partially owed to nan national government's pandemic stimulus efforts that doled retired billions successful assistance to businesses and taxpayers, said Andrew Murray, lead information contented interrogator for GoBankingRates. At nan aforesaid time, nan nation's top-earning households are gaining a greater stock of income, fueling rising income inequality, Census data shows.

"COVID alleviation policies bolstered nan economy, starring to boosted banal prices, existent property and savings," Murray told CBS MoneyWatch. "These conditions were particularly favorable for nan wealthiest of Americans, who knowledgeable melodramatic income increases, particularly considering nan truth that galore companies saw grounds profits."

To beryllium sure, income isn't nan aforesaid arsenic wealth, which has besides grown since nan pandemic. But earning a higher net tin thief families build their assets, allowing them to bargain homes, put successful acquisition for their children and return different steps to cement their wealth. 

The outsized income maturation of nan nation's top-earning families earlier and aft nan pandemic whitethorn beryllium 1 of nan U.S. economy's astir important storylines, Murray said. 

"Even though nan bottommost 20% of earners saw drastic increases successful pay, their wide wealthiness stock successful nan state really decreased, arsenic nan rich | became overmuch richer," he said. 

After West Virginia, Mississippi had nan second-lowest period for joining its top-earning households, astatine $333,597, according to GoBankingRates. 

Meanwhile, joining nan 5% of earners requires considerably much successful galore Eastern states, pinch Connecticut's period astatine $656,438 and New York astatine $621,301, nan study found.

"This comes down to costs of living," Murray said. "People successful New York aliases D.C. are paid higher salaries than group successful states pinch a little costs of living, specified arsenic Arkansas aliases Louisiana."

Between 2017 and 2022, Idaho, Nevada and Washington saw nan biggest jumps successful nan magnitude needed to beryllium considered among their states' apical earners, according to GoBankingRates. Idahoans require an other $115,769 successful yearly income, while Nevadans request an further $129,469. Washingtonians must gain $166,144 much to subordinate nan apical 5%.

The logic is owed to changes successful nan economies of Idaho, Nevada and Washington during nan past fewer years, Murray said. Washington, for example, saw residents' incomes emergence 44% betwixt 2017 and 2022, which Murray said is "likely owed to Seattle's rising estimation arsenic a tech hub aft COVID."

In Idaho, thousands of group moved to Boise during nan pandemic, bringing pinch them their salaries from remote-work jobs, he said. 

"In nan lawsuit of Nevada, which classed number 2 studywide, gambling became much readily legalized and accessible from 2017 to 2022," Murray said. "This led to awesome profit increases for companies headquartered successful Las Vegas."

In:
• Income Inequality