Study: How Texas compares to America’s top 1%

AUSTIN (KXAN) — A recent research study conducted by SmartAsset looked at the differences between the top 1% in each U.S. state.

SmartAsset said it analyzed data from the IRS and Bureau of Labor Statistics to determine the minimum income required to be among the top 1% of earners in each state.

“The 1% threshold varies from state to state, ranging from as much as $953,000 to as little as $368,000,” according to SmartAsset.

The study said income thresholds vary in the four largest states.

“It takes $844,266 and $776,662 to be in the top 1% in California and New York, respectively. But households in Florida and Texas need to earn much less to be considered among the top 1% –  $694,987 and $631,849, respectively,” the study said.

In the rankings, Texas placed No. 14, needing a minimum of $631,849 in 2023 to be considered in the top 1% of households, according to the study.

SmartAsset said the Lone Star State’s top 1% gets taxed at an average rate of 25.83%.

In Connecticut, households must earn more than $950,000 per year to reach the top 1% while West Virginia households only need about $365,000, according to the study.