(NEXSTAR) – The disparity between the income that an average U.S. resident brings in yearly compared to those sitting at the top of earners in each state has always been a major topic of discussion.
In fact, WalletHub states that “the highest-earning 10% of individuals in the United States earn over 12 times more than those in the lowest-earning 10%, based on the latest Census data.”
And while looking up what the “average salary” is across the country, ($74,600, according to the latest data from the Federal Reserve), appears to give a solid idea of how far off most Americans are from the 5% club, a closer look at the high-end salaries reveals that the disparity is even more stark.
WalletHub broke down the income of all 50 U.S. states and Washington D.C into three different groups: the average annual income of the top 5%, the average for the bottom 20%, and the median for all of each state’s residents.
Landing at No. 1 was New York where the top 5% makes about $553,000 a year. That’s almost $35,000 more than the next two highest states and nearly $100,000 more than the 10th-ranked state.
While the top 5% is thriving in the Empire State, its bottom 20% is falling well short, ranking 44th in salary with $13,301.
Right behind New York is Connecticut and Virginia where the average is about $518,000 apiece. Followed by New Jersey and Illinois which are both hovering around $505,000.
The state with the lowest top 5% threshold is Alaska, where earning roughly $321,000 will get you into the club. Hawaii and Vermont aren’t far behind where the top 5% makes about $334,000.
Check out what you need to make in your state:
RankStateAverage Annual Income of Top 5%Median Annual IncomeAverage Annual Income of Bottom 20%1New York$553,436$91,366$13,3012Connecticut$518,757$114,156$14,5763Virginia$518,296$89,393$18,6944New Jersey$505,621$117,847$16,4455Illinois$504,800$78,304$16,1926Georgia$487,870$66,612$16,4727Texas$481,483$70,513$16,8028Washington$474,067$103,748$18,2239Florida$470,308$68,818$15,37510Massachusetts$466,208$127,760$13,68911Minnesota$464,981$86,364$19,79712Colorado$456,603$97,301$18,45113California$454,829$123,988$13,94914Tennessee$453,539$59,077$15,67915District of Columbia$450,892$162,265$9,01116North Carolina$450,592$63,025$15,83617Utah$448,195$89,786$22,49118Michigan$446,114$62,446$17,01919Missouri$446,069$59,715$16,82120Pennsylvania$445,261$74,711$15,80121Ohio$436,922$61,904$16,18822Maryland$427,135$124,693$16,64723Arizona$424,913$74,375$16,60424Kansas$423,517$68,489$17,17625Nebraska$416,325$72,384$17,38026Arkansas$416,224$51,032$14,06927South Carolina$412,771$62,909$13,99628Kentucky$411,897$55,629$13,80029Oklahoma$405,113$57,215$15,20530Idaho$403,737$70,041$18,37231Delaware$402,989$87,173$16,93032Wisconsin$402,256$72,602$17,97333Nevada$401,062$80,366$14,47234New Hampshire$400,343$110,205$18,07535Indiana$399,270$64,170$16,67036Alabama$398,584$55,480$13,24237Montana$395,720$68,937$15,33738Louisiana$395,155$56,282$11,50439Iowa$395,093$68,974$17,62140South Dakota$393,809$69,266$17,25241North Dakota$387,548$79,874$15,66142Wyoming$387,280$76,307$16,19943Oregon$377,399$91,100$14,72044Mississippi$377,040$46,880$12,16845Rhode Island$353,721$104,252$12,66846New Mexico$351,972$58,911$11,94447West Virginia$345,239$52,719$12,47748Maine$338,866$79,800$13,74949Vermont$334,470$89,695$14,47750Hawaii$334,369$141,832$14,01451Alaska$321,634$113,934$15,646(Credit: WalletHub)
As for what state’s residents make the most money on average, Washington D.C. finished with the highest median income of $162,265. Unfortunately, D.C. also finished with the lowest salary for the average annual income of the bottom 20%, with $9,011.
Other states that had a high median income were Hawaii ($141,832), Massachusetts ($127,760), Maryland ($124,693), and California ($123,988).
These states with a smaller gap between the average earner and the top 5% make it easier to make the jump, but it’s still difficult.
According to GoBankingRates, it will take a variety of factors to make that jump. First, you need a steady increase in income. This could mean you are making better financial decisions, investing wisely, or perhaps experiencing career advancements.
Another factor is maybe having a solid investment strategy, look to see that you are getting positive returns on your investment and that you have a well-diversified portfolio.
Finally, prioritize your long-term financial stability. Look to prioritize saving over short-term pleasures.
And if you’re looking to go even higher than the top 5%, Forbes found that to be one of the top 1% of earners in the U.S., you need to bring in an annual salary of at least $597,815, so start saving up!
