AUSTIN (KXAN) – A new analysis shows how much you need to make to be in Texas’ top 1% of income earners compared to other states.
In Texas, the median household income is $67,321 a year, according to 2021 Census data. To qualify as the top 1% of earners in the state, one would have to earn over $631,849 a year. Texas has the 14th highest 1% threshold in the country, per the SmartAsset study.
SmartAsset analyzed IRS and Bureau of Labor Statistics data to find the income required to be in the top 1% of earners for each state. The state with the highest 1% threshold is Connecticut. There, folks would need to earn $952,902 to be in the top 1% of households.
Income equality has been on the rise in the U.S. and Texas — from 2011 to 2022, the rate increased by about 1.2%. The top 1% of earners in the U.S. hold almost as much wealth as the bottom 90% of earners in the U.S., according to Princeton Economics.
Texas has a higher proportion of childhood and adult poverty than the national average. From 2012 to 2021, around 10.4% of Texans qualified as living in poverty. Nationally, the average rate is 9.4%, according to a 2022 report.