What percentage of American households make over 500k?

Household Income Percentile Calculator for the United States

On this page is a household income percentile calculator for the United States in 2022. Enter pre-tax (gross) household income between January and December 2021 to compare to household income percentiles in the full year.

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Household Income Percentile Statistics in 2022

Below, see what the household income brackets looked like for the 10th, 25th, 50th, 75th, 90th, 95th, and 99th – top 1% – percentiles in 2022 vs. 2021:

What was the United States average household income?

In 2022, average household income in the United States was $102,310.10.

What was the United States median household income?

In 2022, median household income in the United States was $70,181.

How many US households made $100,000 or more in 2022?

In 2022, 35.7% of households or around 46,934,416 households made a six-figure income.

How many US households made $250,000 or More in 2022?

About 9,195,904 households or 7.00% of all US households made $250,000 or more in 2022.

What was the top 10% household income percentile in 2022?

The threshold to be in the top 10% of household incomes in 2022 in the United States was $212,110.

What was the top 5% household income percentile in 2022?

The threshold to be in the top 5% of household incomes in 2022 in the United States was $286,301

What is the top one percent household income in the US in 2022?

In 2022, the threshold for a household to be top 1% was $570,003 in earnings.

S ee our one percent in America article for more. Net worth is a better take on the one percent, although often one-percenter refers to income.

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Source and Methodology on the 2022 Household Income Percentile Calculator

Sarah Flood, Miriam King, Renae Rodgers, Steven Ruggles, J. Robert Warren and Michael Westberry. Integrated Public Use Microdata Series, Current Population Survey: Version 9.0 [dataset]. Minneapolis, MN: IPUMS, 2021. https://doi.org/10.18128/D030.V9.0

See the household income bracket article for details on methodology – but household is easier to screen for than individual income.

Want to see a past edition? Here are the archived household income calculators:

• 2021 US Household Income Calculator
• 2020 US Household Income Calculator
• 2019 US Household Income Calculator
• 2018 US Household Income Calculator
• 2017 US Household Income Calculator
• 2016 US Household Income Calculator

More interestingly, we have the household income by year post. Try that one first (it does inflation adjustments for you).

What It Takes to Be in the Top 1% by State – 2023 Edition

The gap between the top 1% of earners and average Americans is stark. In fact, the average American household earns a median income of under $70,000, but in some places, the top 1% can earn as much as $955,000. Those annual earnings can seem far out of reach in a country where less than 10% of all households earn more than $200,000, according to the U.S. Census Bureau. Ultimately, climbing the economic ladder is difficult, but it’s less intimidating in some states than in others.

SmartAsset analyzed data to determine the minimum income required to be among the top 1% of earners in each state. To do so, we used data from the IRS and Bureau of Labor Statistics. For more information on our sources and how we ranked states, read our Data and Methodology section below.

This is SmartAsset’s second study on what it takes to be in the top 1% in each state. Check out the previous edition here.

Key Findings

• New Jersey overtakes New York. New York ranked No. 3 in last year’s edition, with residents needing $777,126 to be a top 1% taxpayer, while New Jersey followed with $760,462. This year, New Jersey outpaces New York’s top 1% by $8,168.
• In this one state, you’ll need to earn more than $900,000 to be in the top 1%. That state is Connecticut. The top 1% of taxpayers here have the highest average tax burden (27.77%). Residents in the next highest state need roughly $58,300 less to be a top 1% taxpayer.
• Roughly $374,700 will put you in the top 1% in West Virginia – the lowest threshold across the country. Mississippi follows, where taxpayers will need roughly $383,100 to be a top 1% taxpayer. There are just 11 additional states that require less than $500,000 to be in the top 1%.

States Where the 1% Income Threshold Is Highest

1. Connecticut

The Constitution State takes the No. 1 spot once again. Here, residents would need to earn roughly $955,000 to be in the top 1% of taxpayers. That makes it the only state requiring more than $900,000. Connecticut residents need to earn at least $336,800 to fall into the top 5%. Both groups have a tax burden that exceeds 24%, with the top 1% seeing a rate of 27.77% on average.

2. Massachusetts

Residents in Massachusetts need to earn just under $900,000 to be in the top 1% of taxpayers. This group accounts for roughly 38.12% of all income taxes paid in the state and is typically taxed at a rate of 26.46%. The income cutoff for falling into the top 5% is $547,000 less than the top 1% cutoff.

3. New Jersey

The threshold to be a top 1% taxpayer in the Garden State is $825,965. For the top 5%, the lower limit sits at $338,884. New Jersey residents within the top 5% account for 55.60% of the state’s income taxes, with the top 1% making up 33.58%.

4. New York

New York residents earning over $817,796 are considered top 1% taxpayers, while the threshold for the top 5% is much lower at $287,752. The top 1% of taxpayers in the Empire State are taxed at an average rate of 27.48%, which is the second-highest across the country. This group also accounts for 45.59% of the entire state’s total income taxes (fourth-highest).

5. California

The most populous state in the country has the fifth-highest threshold to be a top 1% taxpayer ($805,519, which is also the last state to exceed $800,000). California residents earning beyond this threshold are taxed at an average rate of 26.78% (fifth-highest) and account for roughly 39% of total income tax in the state. To be a top 5% taxpayer in the Golden State, a resident would need to earn almost $317,800.

States Where the 1% Income Threshold Is Lowest

1. West Virginia

As it did last year, West Virginia takes the top spot for the lowest threshold needed to be a top 1% taxpayer: $374,712. The difference between the top 1% and top 5% in West Virginia is roughly $190,700. The average tax rate for the top 1% is 23.56%, and these residents account for 27.49% of the state’s total income taxes. Comparatively, the top 5% pays an average tax rate of 18.45% and accounts for 48.03% of West Virginia’s total income taxes.

2. Mississippi

To be a top 1% taxpayer in this southern state, residents must earn at least $383,128. Additionally, Mississippi and West Virginia are the only two states where you need to earn less than $400,000 to be in the top 1% of taxpayers. For this group of taxpayers, there is an average tax rate of 22.47% and they account for just under a third of the state’s total income taxes.

3. New Mexico

New Mexico taxpayers in the top 1% account for roughly 33% of total income taxes in the state. To meet the threshold for the top 1%, a New Mexico resident needs at least $418,970 in earnings and can expect to be taxed at an average rate of 22.67%. The top 5% needs a minimum of $201,646 and pays an average tax rate of 18.86%

4. Arkansas

In the state known for diamonds, residents will need to earn at least $446,276 to fall into the top 1% of taxpayers. Those earning over $198,233 fall into the top 5%, almost a 56% difference in earnings. The top 1% of taxpayers are taxed at an average rate of 22.57%, while the top 5% can expect roughly a 19% rate. Both groups account for 58.41% of the state’s total income taxes.

5. Kentucky

Earnings of just over $447,300 are needed to be considered a top 1% taxpayer in the Bluegrass State, and just under $200,000 is required to be in the top 5%. Kentucky residents who fall into the top 1% are taxed at an average rate of 23.78% and account for just under a third of the state’s total income taxes.

Data and Methodology

To determine the income needed to be in the top 1% of earners in each state, SmartAsset analyzed 2019 data from the IRS for tax units (i.e. single, married or head of household). Figures were adjusted to 2022 dollars using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor Statistics.

Tips for Financial Planning

• Learn how to maximize your tax breaks. Tax season is fast approaching. Make sure you’re prepared and the whole process will be far less daunting. Here are some of the most popular tax breaks you can potentially use on your tax return.
• Get a sense for what your taxes might look like this year. SmartAsset’s federal income tax calculator can help you estimate your taxes before the filing deadline.
• Work with a finance professional. Whether you’re in the top 1%, top 5% or below, you should plan ahead for retirement. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Questions about our study? Contact press@smartasset.com.

Photo credit: ©iStock/Tom Merton

What percentage of American households make over 500k?

Urban Wire Eighty Percent of Homes on the Market Aren’t Affordable for Households Earning Median Incomes or Less

Jung Hyun Choi , Amalie Zinn
Display Date
December 7, 2022

Home prices have risen substantially above the inflation rate, putting homeownership increasingly out of reach for many Americans. Rising interest rates have slowed home price growth (PDF) but have introduced a new barrier to affordability.

As a result, households earning median incomes or less can afford only 20 percent of homes for sale, compared with the roughly half of homes they could afford in 2016. But affordability varies noticeably across locations, suggesting that a combination of federal and local solutions that target both supply and demand could alleviate cost burdens.

There’s been a steep decline in affordable homes

Despite seasonal volatility, total active listings declined continuously nationwide, from nearly 2.5 million in July 2015 to roughly 830,000 in October 2022, a 66.2 percent drop.

Listings for homes worth less than $350,000 experienced the greatest decline. In July 2015, they composed more than 70 percent of all active listings, compared with less than 35 percent of all active listings in July 2022 and less than 40 percent in October 2022 (the most recent data we have).

Meanwhile, listings for homes worth less than $350,000 dropped from 1.7 million in July 2015 to 319,532 in October 2022. During this period, listings for homes worth between $100,000 and $200,000 declined the most, by more than 18 percentage points. Even after adjusting for overall price increases using Black Knight’s Housing Price Index, we found a noticeable decline in the share of low-price homes.

The sharp rise in interest rates is also increasing the costs of owning

On top of rising home costs, increasing interest rates have made owning less accessible.

To show how rising rates affect the costs of owning, we calculated the monthly principal and interest rate a homebuyer would need to pay for a median-price home (around $450,000). For households that pay a 5 percent down payment, their monthly mortgage payment increases from $1,802 to $2,844 when the interest rate increases from 3 percent to 7 percent. For those who put 20 percent down, the monthly cost increases from $1,518 to $2,395. In both cases, the monthly mortgage payment increases by 58 percent.

Though rents have also gone up substantially in the past year, the rise in interest rates has made owning more expensive than renting. The median mortgage-payment-to-rent ratio-payment reached 1.46 in September, the highest since the Mortgage Bankers Association began to track this metric in 2009.

Still, affordability varies substantially by location

Affordability has decreased in most markets, but there is noticeable variation. Among the 15 most-populous metropolitan areas, for example, households earning median incomes or less in the Detroit area can afford 46 percent of homes on the market, while in Los Angeles, they can afford less than 2 percent.

Some of these variations can partially be explained by income differences. Though San Francisco has a higher median home value compared with Los Angeles ($1,463,289 versus $954,270), the median income in San Francisco is higher than in Los Angeles ($121,826 versus $77,456), resulting in a higher share of affordable homes for sale in San Francisco.

In general, areas with higher ratios of median home sales prices to median household incomes have lower shares of affordable homes that households with median incomes or less can purchase.

Echoing national trends, we also found listings for homes worth less than $350,000 in Boston, Los Angeles, and Seattle—three of the least affordable areas—had the largest decreases in active listings from 2015 to 2022.

In all the metro areas, total active listings declined from 2015 to 2022, in line with national trends.

Both supply- and demand-side policies are needed to prevent wealth inequality from worsening

As homes become more unaffordable, households with low incomes—who are disproportionately households of color and young first-time homebuyers—will face greater challenges accessing homeownership. Interventions on the housing supply and demand sides can mitigate potential widening wealth disparities by income, race, ethnicity, and generation.

Both local and federal policies can increase supply. Local policymakers could consider changing zoning ordinances to lower housing costs. Federal policymakers could consider incentives for such local zoning changes. They could also increase funding for the Housing Trust Fund and Capital Magnet Fund to preserve and increase homeownership for families with low incomes and consider expanding the Low Income Housing Tax Credit program to rehabilitate homes for sale. Further, they could improve chattel financing for manufactured homes and make financing for accessory dwelling units less cumbersome.

Solutions that address supply will take time to bear results, so they should be complemented with policies that address demand in today’s market. Policies that address demand should be designed and implemented with great caution in an inflationary environment, because increased demand could further drive up prices, which could mitigate the intended impact.

Targeting policies like down payment assistance programs, assistance to first-generation homebuyers, and special purpose credit programs in areas where there are still some affordable homes, such as Detroit and Philadelphia, could be particularly effective to help struggling homebuyers. Programs that reduce borrowing costs in addition to the amount borrowed could also help in the current economic environment.

As long as home prices and inflation remain volatile, enacting complementary policies that alleviate supply and demand challenges will be critical for ensuring prospective buyers with median and low incomes don’t get boxed out.