What it takes to be part of the 1% in Arizona
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It's easier to get into the most elite echelon of income earners in Arizona than in a lot of other states, but the amount here is still pretty high.
State of play: To be in the top 1% of earners in Arizona, you need to be making $697,721 annually, per IRS data.
- That's a lot of money, but it's noticeably lower than the national average of nearly $800,000.
Catch up quick: The earnings required to get into Arizona's top 1% jumped by 26% from 2020 to 2021, the Phoenix Business Journal reported.
- Since 2016, the amount has increased by 51%.
Why it matters: Even if your earnings have kept up with 1% status, your spending might've jumped enough to wipe out the extra cushion.
- The cost of housing has increased substantially over the past few years, and it takes a six-figure income just to afford a median house in Phoenix.
By the numbers: Arizona is smack in the middle of the national rankings, 25th out of the 50 states and D.C., nestled between Pennsylvania and North Dakota.
- In 2021, there were 31,720 Arizona tax filings that hit 1% status.
Zoom out: Washington, D.C., has the highest threshold for one-percenters, at about $1.22 million.
- Connecticut ($1.17 million), Massachusetts ($1.13 million) and California ($1.05 million) follow.
The other side: West Virginians need to make about $426,000 to be in their state's 1%.
How it works: These figures are based on adjusted gross income (AGI) reported on tax filings in the 2021 tax year, adjusted to 2024 dollars.
Between the lines: The variation among states is tied in part to local economic factors, like job opportunities and wealth concentration.
- West Virginia's floor may be low, for example — but the total AGI per tax return there was about $60,300 in 2021, compared with $112,500 for California.