Think you’re rich? What you need to earn in NJ to be in the Top 1%
💰 Earnings of the top 1% vary drastically from state to state
💰 New Jersey shares the top 5 with two other Northeast states
💰 The national '1%' figure is around $650,000
New Jersey ranks among the states that require the highest income in order to be in the top 1% of residents, according to an analysis by SmartAsset.
Nationwide, you're in the top 1% wealth-wise if your household brings in at least $652,000 per year, the financial technology company says.
That figure varies significantly from state to state, and in New Jersey, it's much higher.
To come up with its rankings, SmartAsset analyzed 2020 IRS data and adjusted figures to May 2023 dollars using the Consumer Price Index.
Take a look at 20 states where you need to earn the most 👇
How much you need to earn to be in each state's Top 1%
In New Jersey, an annual household income of $817,346 is necessary in order to be in the top 1% of the state's earners. That's the fourth highest total among the states — Connecticut came in at No. 1, Massachusetts at No. 2, and California at No. 3.
New Jersey taxpayers at the very top of the income ladder pay an average effective tax rate of 28.01%, the analysis shows.
According to SmartAsset, New Jersey also has the second-highest floor for the top 5%: $333,114.
If you lived in New York, annual earnings of $776,662 would be enough to be in the 1%. Household income in Pennsylvania would have to be at least $588,702.