Dec 9, 2024 - News
How much you need to earn to be among Massachusetts' 1%
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For those who aspire to be among the most elite earners, Massachusetts sets a high bar.
By the numbers: There are only four states (plus D.C.) where you need to earn seven figures to be among the top 1% of wage earners, and we're one of them.
- The bar for Massachusetts' one-percenters: $1.13 million, third-highest in the nation behind D.C. and Connecticut.
How it works: These figures are based on adjusted gross income reported on tax filings in the 2021 tax year, adjusted to 2024 dollars.
Zoom out: The median income in the U.S. is about $75,000, meaning half of Americans earn less, according to a new SmartAsset analysis of IRS tax filer data.
- Nationwide, it takes $787,712 a year to be a one-percenter.
- In West Virginia, the 1% elite can make as little as $420,453.
Flashback: It only took $903,401 a year to be in the Massachusetts 1% club last year.
- That's more than a 25% increase.
- One-percenter taxpayers are on the hook for the state's additional 4% surtax on taxable income over $1 million.