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California is home to some of the most expensive zip codes in the nation. However, a new report found that it's interestingly not the state where the 1% income threshold is the highest.
An analysis by SmartAsset determined how much U.S. residents would need to earn to be considered among the top 1% of earners in each state.
According to their findings, to be in the top 1% in California you would need an adjusted gross income (AGI) of $745,314. To be in the top 5% of income earners, you'll need to earn $291,277.
"The top 1% account for 41.55% of total Golden State income taxes,” said SmartAsset.
They also found the average annual income needed to be in the top 1% national: $597,815.
That puts California at number 5 in terms of the adjusted gross income needed to be considered a top 1% earner.
These are the states that beat out California:
- Connecticut: Need to earn $896,490
- Massachusetts: Need to earn $810,256
- New York: Need to earn $777,126
- New Jersey: Need to earn $760,462
According to FOX40, West Virginia has the lowest income threshold for the top 1% at $250,212, and the District of Columbia has the highest income threshold at $918,000.