A new analysis reveals that income inequality varies dramatically by state and that a six-figure salary may not be enough to enter the top tier of earners in much of the country.
As income dispersion continues to widen across the United States in 2026, questions around cost of living, housing affordability, and tax burden carry vastly different meanings depending on where a person lives and how much they earn.
To better understand the divide between middle and top earners, researchers at BestBrokers have analyzed the latest data to identify exactly how much income is required to enter the top 1% in each state, and how that threshold compares to what the average resident earns.
Methodology
The BestBrokers team analyzed Statistics of Income data and larger datasets from the Internal Revenue Service (IRS) to identify the income thresholds for the top 1% of earners in each state.
The original 2022 figures for the income floors of the top 1% percentile returns were adjusted to 2025 dollars using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average for all items. Population figures were sourced from the U.S. Census Bureau.
A key metric in the analysis was the ratio of each state’s average personal income per capita to the top 1% income threshold, a measure that reveals not just how high the bar is, but how far the average resident sits below it.
Florida Leads the Nation in Income Inequality
Of all 50 states, Florida shows the widest gap between middle and top earners.
To break into the top 1% in Florida, residents must earn approximately $872,852 per year, which is roughly 12 times the state’s average income of $75,646.
This striking premium highlights just how concentrated high-end earnings are in Florida, and how steep the financial leap is from a typical paycheck to elite income status.
Connecticut ranks second, with a top 1% threshold of $1,073,564, the highest dollar figure on the list, at 11 times the state’s average income of $98,962.
Texas, New Jersey, Georgia, California, New York, Massachusetts, Utah, and Nevada all round out the top ten, each requiring earners to surpass approximately 10 times their state’s average income.
States with the Widest Gap Between Middle and Top 1% Earners
| # | State | Top 1% Threshold | Ratio | Avg. Income |
| 1 | Florida | $872,852 | x12 | $75,646 |
| 2 | Connecticut | $1,073,564 | x11 | $98,962 |
| 3 | Texas | $755,616 | x10 | $72,563 |
| 4 | New Jersey | $915,205 | x10 | $88,223 |
| 5 | Georgia | $673,211 | x10 | $66,073 |
| 6 | California | $919,587 | x10 | $90,416 |
| 7 | New York | $905,617 | x10 | $89,340 |
| 8 | Massachusetts | $980,298 | x10 | $96,960 |
| 9 | Utah | $701,372 | x10 | $69,989 |
| 10 | Nevada | $714,743 | x10 | $72,565 |
Where the Divide Is Smallest
At the other end of the spectrum, West Virginia and New Mexico show the narrowest gaps, with the top 1% threshold sitting at just 7 times the state’s average income.
In West Virginia, the threshold is $422,835 against an average income of $58,376; in New Mexico, it is $458,718 against an average of $62,069.
While overall income levels in these states are lower, the data suggests a less extreme separation between middle earners and those at the top.
Maine, Vermont, Nebraska, Indiana, Mississippi, Wisconsin, Iowa, and Delaware also appear among the states with the smallest divides, with top 1% thresholds averaging around 8 times the state’s average income.
States Where the Divide Between Middle and Top 1% Earners Is Smallest
| # | State | Top 1% Threshold | Ratio | Avg. Income |
| 1 | West Virginia | $422,835 | x7 | $58,376 |
| 2 | New Mexico | $458,718 | x7 | $62,069 |
| 3 | Maine | $559,572 | x8 | $72,371 |
| 4 | Vermont | $592,706 | x8 | $74,932 |
| 5 | Nebraska | $613,364 | x8 | $76,729 |
| 6 | Indiana | $539,660 | x8 | $66,952 |
| 7 | Mississippi | $446,367 | x8 | $55,188 |
| 8 | Wisconsin | $575,594 | x8 | $70,974 |
| 9 | Iowa | $562,730 | x8 | $68,585 |
| 10 | Delaware | $587,649 | x8 | $71,359 |
Fastest-Rising States
The report also tracks recent personal income trends at the state level. In the third quarter, personal income increased in all 50 states and the District of Columbia. The largest quarter-over-quarter gains were recorded in Kansas (+1.44%, bringing average per-capita income to $70,506), Nebraska (+1.23%, to $76,729), and South Dakota (+1.22%, to $81,018).
On an annual basis, the largest increases in per-capita personal income were seen in Kansas (+6.3%), Nebraska (+5.6%), South Dakota (+5.5%), New Mexico (+4.9%), and Pennsylvania (+4.7%). Louisiana recorded the smallest annual increase, at just 0.1%.
Expert Perspective
“Looking at the gap between average income and the top 1% income floor by state does more than show who earns the most — it exposes how uneven prosperity really is on the ground. A state can appear affluent on paper, yet still have a sharp divide if the top 1% threshold sits far above what typical residents earn. That gap matters in 2026, when rising costs, housing pressures, and wage stagnation are reshaping how people experience ‘growth. It highlights where wealth is concentrated in a small slice of households versus where income is more broadly spread, offering a more honest snapshot of economic reality than averages alone.”
— Alan Goldberg, Author, BestBrokers
Source: BestBrokers analysis of IRS Statistics of Income data, adjusted to 2025 dollars using BLS CPI-U. Population data: U.S. Census Bureau.
