Taxes have been one of the most hotly debated topics in Washington and cuts for the wealthiest Americans are one of the most controversial subjects surrounding the issue.

But how many rich people are there in the U.S., how much do they make and where do they live? And just what income do you qualify to be rich?

According the data from the Census Bureau, there are currently 4.5 million households that earn over $200,000 per year, the highest wealth division compiled in Census reports, which is approximately 3.8% of all households in the country. The average income of those making over $250,000 is $425,226 and there were 2.37 million households in this range as of 2009, although this data is not broken down by state.

With Census Bureau data from their National Data Book 2010 Statistical Abstract, we’ve outlined the states that have the highest proportion of households with annual incomes in excess of $200,000. Among the states with the lowest proportion of $200,000+ households are West Virginia (1.4%), South Dakota (1.81%) and Arkansas (1.86%).

So, what are the states with the most high-income households? Click ahead to find out!

By Paul Toscano
Updated 14 Dec 2010

% of Households Earning $200K+: 3.8%
Total households: 2,062,681
Households earning $200K+: 77,772
Median income: $55,956

% of Households Earning $200K+: 3.9%
Total households: 8,244,022
Households earning $200K+: 313,681
Median income: $47,143

% of Households Earning $200K+: 4.0%
Total households: 2,501,509
Households earning $200K+: 99,636
Median income: $58,964

% of Households Earning $200K+: 4.1%
Total Households: 1,859,965
Households Earning $200K+: 76,216
Median Income: $59,964

% of Households Earning $200K+: 4.2%
Total Households: 501,505
Households Earning $200K+: 20,899
Median Income: $66,654

% of Households Earning $200K+: 4.4%
Total Households: 4,759,579
Households Earning $200K+: 208,385
Median Income: $53,413

% of Households Earning $200K+: 4.5%
Total Households: 439,685
Households Earning $200K+: 19,876
Median Income: $61,055

% of Households Earning $200K+: 5.6%
Total Households: 7,099,940 =
Households Earning $200K+: 399,014
Median Income: $50,372

% of Households Earning $200K+: 5.7%
Total Households: 2,932,234
Households Earning $200K+: 165,998
Median Income: $61,151

% of Households Earning $200K+: 6.2%
Total Households: 12,200,672
Households Earning $200K+: 757,411
Median Income: $56,862

% of Households Earning $200K+: 6.22%
Total Households: 2,449,133
Households Earning $200K+: 152,348
Median Income: $59,981

% of Households Earning $200K+: 6.9%
Total Households: 2,082,458
Households Earning $200K+: 142,694
Median Income: $65,183

% of Households Earning $200K+: 7.5%
Total Households: 3,149,910
Households Earning $200K+: 235,278
Median Income: $64,143

% of Households Earning $200K+: 8.0%
Total Households: 1,320,714
Households Earning $200K+: 105,433
Median Income: $65,213

% of Households Earning $200K+: 8.4%
Total Households: 251,039
Households Earning $200K+: 21,194
Median Income: $53,685