To be considered "rich" in America, according to a recent poll from data firm YouGov, most people think you need to earn $100,000 or more a year. But to be a part of the top 5% of earners in some states, like California, you need to make a lot more than that.
That's according to financial website GOBankingRates, which used "data from the U.S. Census Bureau's 2017 American Community Survey and the Economic Policy Institute's income inequality report to determine the average income for each state" and Washington, D.C.
"You might be surprised to learn," the report says, "that there's a vast discrepancy between the 5-percenters in one state as compared with some others."
Here's what the data shows for the Golden State:
- Average top 5% income: $447,207
- Lower limit of top 5%: $250,000
"To be rich in California means you've really hit the big time," says GOBankingRates. "California is one of the seven states in the country — eight if you include Washington, D.C. — in which you'll need at least $250,000 to reach the top 5%."
The others include notoriously pricey states such as Connecticut, New Jersey and New York.
"But that's still chump change compared to California's 1-percenters," the study adds, "who earn close to $1.7 million on average." The minimum annual income needed to crack the state's top 1% is $514,694, according to the Economic Policy Institute. Nationally, it's $421,926.