Share of income earned by the Rich by state ($1m+/year)

Nationally, a small fraction of households report incomes of $1 million or greater per year. But at a rate of about 3 out of 1000 households (0.28%), it is more common than you might think. There might a secret millionaire earner in your contact list.

A few states stand out nationally as having relatively percentages of these ultra earners. The coastal north eastern states earn their reputation as being abnormally wealthy. Several have rates of up to twice has high as nationally (see table):

CONNECTICUT0.63%
DISTRICT OF COLUMBIA0.60%
NEW YORK0.51%
MASSACHUSETTS0.47%
NEW JERSEY0.43%

While there are only 424,870 of these $1m+ households, out of a total of 149,853,100 in the country. They earn a very large share of the nations income, racking in over 13% of total income.

Income share of total income by state earned by households with $1m+ reported income to the IRS.

The list of bottom states for high earners is unsurprising with West Virginia topping that list at a rate of 7 out of 10,000. It’s not exactly a bad thing to have a low portion of ultra high earners in your state. Having a low percentage implies that there is probably a larger amount of income equity in the local economy. But since each state is part of the larger US, having a lower fraction may also imply that certain states are less desirable or economically productive compared to others.

Raw Data by State 2016

Table by State and Percentage of Tax returns that are of households >$1 million in ajusted gross income. % of Total Income is a percentage that these households earned of all the income earned in that state in 2016.

State% of Returns% of Total IncomeTotal Returns
UNITED STATES 0.28%13.34%424,870
ALABAMA0.16%7.63%3,240
ALASKA0.19%5.96%660
ARIZONA0.20%9.02%5,830
ARKANSAS0.14%11.94%1,760
CALIFORNIA0.40%17.73%71,290
COLORADO0.29%11.79%7,660
CONNECTICUT0.63%22.19%10,990
DELAWARE0.19%6.73%850
DISTRICT OF COLUMBIA0.60%18.57%2,070
FLORIDA0.29%16.71%28,420
GEORGIA0.23%9.87%10,050
HAWAII0.15%6.75%1,010
IDAHO0.16%8.92%1,220
ILLINOIS0.31%13.40%19,180
INDIANA0.16%7.74%4,870
IOWA0.15%5.95%2,100
KANSAS0.20%9.10%2,610
KENTUCKY0.13%7.05%2,550
LOUISIANA0.19%8.99%3,830
MAINE0.14%6.20%940
MARYLAND0.28%9.54%8,170
MASSACHUSETTS0.47%17.77%16,160
MICHIGAN0.19%10.15%9,190
MINNESOTA0.25%10.36%6,970
MISSISSIPPI0.11%5.93%1,340
MISSOURI0.19%9.77%5,240
MONTANA0.15%7.46%750
NEBRASKA0.18%8.35%1,650
NEVADA0.27%20.14%3,770
NEW HAMPSHIRE0.23%10.37%1,590
NEW JERSEY0.43%14.23%19,070
NEW MEXICO0.11%5.68%990
NEW YORK0.51%23.37%48,570
NORTH CAROLINA0.19%8.60%8,660
NORTH DAKOTA0.19%8.01%700
OHIO0.17%7.69%9,560
OKLAHOMA0.17%8.54%2,760
OREGON0.20%8.47%3,790
PENNSYLVANIA0.22%10.13%13,860
RHODE ISLAND0.19%8.57%1,020
SOUTH CAROLINA0.18%7.77%3,880
SOUTH DAKOTA0.22%11.19%920
TENNESSEE0.21%11.01%6,160
TEXAS0.26%12.07%31,810
UTAH0.23%11.37%2,970
VERMONT0.16%6.86%520
VIRGINIA0.26%9.19%10,010
WASHINGTON0.30%13.88%10,600
WEST VIRGINIA0.07%3.23%550
WISCONSIN0.19%9.18%5,460
WYOMING0.29%18.57%770
OTHER AREAS [20]0.82%40.61%6,300

Sources

The source of these data tables comes from the Excel files available freely on the IRS website. The figures above are from 2016. https://www.irs.gov/statistics/soi-tax-stats-historic-table-2

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