Aug 23, 2023 - News

How much Colorado's top 1% of earners make

Minimum income needed to be in the top 1%<br> of earners
Data: SmartAsset; Map: Tory Lysik/Axios Visuals

You need to make at least $709,092 a year to be among the top 1% of earners in Colorado, according to a recent SmartAsset analysis of IRS data.

By the numbers: That's the seventh highest amount among all states in 2020 β€” and roughly $56,000 more than the national household figure of $652,657.

The big picture: The top 1% of U.S. families held more than a third of the country's total wealth in 2019, the Congressional Budget Office reported last year.

  • Meanwhile, "families in the bottom half ... held only 2% of total wealth," per the report.

Zoom out: Nationally, joining the 1% club is most expensive in Connecticut, where residents need to make at least $952,902 to be a member.

  • It's cheapest in West Virginia, where residents need to make $367,582 to be among the state's top earners.

Between the lines: Colorado's effective tax rate for high earners is 25.86%, or 11th highest in the nation.

  • Of course, the ultra-wealthy have myriad means of reducing their actual tax burdens.

The bottom line: The states with the highest 1% floors β€” Connecticut, Massachusetts, California, New Jersey and Washington β€” tend to be either home to or in commuting range of major tech and finance hubs, and the high-paying jobs those industries offer.

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