What it takes to join Michigan's 1% of earners
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Making $504,671 a year puts you among the top 1% of earners in Michigan, according to a recent SmartAsset analysis of IRS tax filer data.
- That's less 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, according to the Congressional Budget Office, Axios' Alex Fitzpatrick reports.
- Meanwhile, "families in the bottom half...held only 2% of total wealth" in 2019, per the CBO report.
Zoom in: For the top 1% of earners in Michigan like Dan Gilbert — the Quicken Loans founder and the state's richest man — the effective tax rate is 25%.
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.
Yes, but: Connecticut is also home to the highest effective tax rate for high earners, at 28.4%.
- Of course, the ultra-wealthy have myriad means of reducing their actual tax burdens.
The bottom line: The states with the highest 1% floors — Connecticut, Massachusetts, California, New Jersey and Washington — tend to be either home to or in commuter range of major tech and finance hubs.