This is how much you need to earn per year to be considered rich in the different states of the US

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A recent study by GoBankingRates has shed light on the vast differences in income needed to be considered wealthy across various states in the United States. The study, which analyzed state income data from 2017 to 2022 based on the most recent household income data from the United States Census, revealed some staggering findings.

According to the study, West Virginia is the state with the lowest threshold for being considered wealthy, with an annual income of $329,620 required to reach the top echelon of earners. On the other end of the spectrum, Washington DC topped the list with a staggering $719,253 needed to achieve rich status.

Andrew Murray, senior content data researcher for GoBankingRates, highlighted the impact of COVID relief policies on the economy, leading to increases in stock, real estate, and savings prices. This, in turn, greatly benefited the wealthiest Americans, who saw significant increases in their incomes, particularly in companies reporting record profits.

However, the income growth among the rich has also fueled growing income inequality, with the lowest-paid earners experiencing wage increases but a decline in their share of overall wealth. Despite income not equating to wealth, having a high salary can help families accumulate assets and invest in their futures.

The study also showcased the varying thresholds for wealth across eastern states, with Connecticut requiring an annual income of $656,438 and New York $621,301 to enter the top 5% range. Murray attributed these differences to the cost of living, with higher salaries in states like New York or DC compared to lower cost of living states like Arkansas or Louisiana.

Between 2017 and 2022, Idaho, Nevada, and Washington saw the largest increases in the income required to be considered among the top earners in their states. Idaho saw an additional $115,769 needed, Nevada $129,469, and Washington $166,144. Factors contributing to this growth included Seattle’s tech hub reputation, an influx of remote job wages in Boise, and the profits from gambling in Las Vegas.

Overall, the study underscores the significant disparities in income needed to be considered wealthy across the United States and the various factors that contribute to these differences.