Massachusetts’ Richest Residents Make a Certain Income

It takes a lot to get to the top 1% of earners in Massachusetts or any state. Getting into that top 1% is a hurdle that only a few can get past. If you've ever wondered if you're among the top 1% of income earners in the state, a new study explains exactly how much income it takes to get past that threshold. This number could be a bit jarring, but remember that it's really the top percentage of income earners, so it's not like getting into just the upper-middle class.

The experts at SmartAsset have put together a tally of the top 1% of income earners across America in each state. They complied the information into a handy map, where you can look at your state and see what those top earners make per year. It really varies per state, as they point out that "what it takes to be considered a top 1% income earner can differ by over $500,000 from state to state."

One of the key findings in this study is that, according to SmartAsset, "It takes over $1 million per year in income to be in the top 1% in three states." Those states are Connecticut, which has the highest mark to reach the top 1% of earners at $1.15 million, as well as Massachusetts around $1.11 million and California at $1.04 million or more. The lowest threshold for being in the top 1% in a state is $420k in West Virginia. Mississippi comes in as the second lowest threshold at $440,744, and New Mexico is third at $476,196.

So, what do you have to make to be among the top 1% of income-earners in Massachusetts? As mentioned above, for Massachusetts, it's $1,113,662. The number of tax returns with that income or higher in the state is 32,598. The income floor for the top 5% of residents in thh state is $393,160, so it's much easier to get to that level. Sure, those numbers may seem high, but perhaps you can make it a New Year's resolution to hit one of these marks.

Also, as for methodology of this study, SmartAsset looked at 2021 IRS data for individual tax filers and adjusted those numbers to June 2024 dollars using the Bureau of Labor Statistics' Consumer Price Index for All Urban Consumers (CPI-U) U.S. city average series for all items, not seasonally adjusted.