March 11, 2022

What kind of income does it take to fall in the top 1 percent? It depends on your state.

In Connecticut, you need to earn nearly $900,000 to make the top 1 percent.

In West Virginia, that drops to $350,000.

On average, a U.S. family needed to earn $597,815 in 2021 to be in the top 1 percent nationally, according the personal finance website SmartAsset.

The analysis used 2018 income data from the IRS and then adjusted it to 2021 dollars to account for inflation.

So what about South Dakota? The study found the state ranked in the middle of the pack at No. 23, with an income of $504,422 landing you in the top 1 percent. At $203,185, you’d be in the top 5 percent.

Nationwide, the study found top 1 percent earners pay at least 25 percent of the total income tax share in their states. South Dakota has no personal income tax. Nationally, the top 1 percent of earners contribute to 36 percent of all individual income taxes paid.