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  • Writer's pictureThe Marcus Garrett
    • Aug 30

Income You Need To Be Rich In America In 2024

How much income do you need to be rich? I get this question all the time. The answer is: it depends on who you ask. But, since you asked me, here's what I found about the individual income and the household income you need to be considered rich in the United States based on my most popular infographics @TheMarcusGarrett.


All sources are cited after this post in order of appearance. Unless otherwise mentioned, figures are adjusted to most accurately reflect the dollar's purchasing power in 2024.


Average and Median Individual Income In America

Before analyzing Wealth In America, here is a quick breakdown of the average salary in the United States. Generally, peak earning years for most American workers will occur between the ages of 35 and 54. In 2019, a PayScale report found that nationally women’s earnings peak around age 44 ($66,700) and men’s peak closer to age 55 ($101,200).


Figure 1: Peak Earning Years For American Men and Women


I think the "median" salary is a better representation of the average American's experience, however, for your benefit and the sake of comparison, the figures below include the median and average salary of Americans ages 18 to 75. Specifically, you can find the median income for ages 25 to 44 here and the median income for ages 45 to 64 here. Overall, the results for individual incomes in the United States:

  • Median: $50,000

  • Average: $69,000

  • Top 10%: $135,605

  • Top 1%: $407,500


Figure 2: Average and Median Salary in The United States By Age


Median Salary For Full-Time Workers

$48,080 is the median annual working wage in the United States, according to the U.S. Bureau of Labor Statistics. As shown in the map below, salaries for full-time workers are slightly higher than the national median salary in the United States.


Figure 3: Median Employee Salary by State - U.S. Bureau of Labor Statistics


Average Salary For Full-Time Workers

According to the U.S. Bureau of Labor Statistics, the national average salary in the U.S. in Q4 of 2023 was $59,384. At $86,840, Massachusetts was the highest-earning state in the U.S. on average, followed by Washington ($85,748), California ($84,448), New York ($84,292) and Connecticut ($78,572).


Figure 4: Average Employee Salary by State - U.S. Bureau of Labor Statistics


Average and Median Household Income In America

The median household income is about $74,202. The average household income is around $106,270. Typically, when I discuss household income, my followers are more interested in the household incomes relative to their state. The following figures cover household income by age range and household income by state.


Middle-Class Households Incomes

Nationally, between $50,000 and $150,000 a year puts you in the middle class, according to U.S. Census Bureau Data. There are many definitions for “the middle class,” but the Pew Research Center defines a middle-class income as an income that is two-thirds to double the median household income in the United States. The salaries reflected in this map show the middle of this range for the middle-class household income in each state.


Figure 5: Middle-Class Household Income


Upper-Class Household Incomes

Pew Research Center defines “upper class” as households that make at least double the state's median household income.


Figure 6: Upper-Class Household Income



Individual Income You Need To Be Rich

What do Americans consider rich? A "poor" person can feel wealthy. A rich person can feel poor. As a benchmark to the raw salary and net worth data available below, it is important to understand what Americans consider rich. In 2023 and 2024, Bankrate asked Americans, "What income do you need to feel rich?" To feel rich in 2023, Americans felt they needed to earn $483,000 a year. Americans want an 8 percent increase to feel rich in 2024, responding that to feel rich they feel like they need to earn $520,000.


Figure 7: What Annual Income Do You Need To Feel Rich?


Household Income You Need To Be Rich In Your State

While $74,580 is the median household income, the Top 10% of individual income earners must earn $135,605. At a minimum, to enter the top 10% of households, a household must earn around $191,406.


Figure 8: Top 10% of Household Incomes By States


Top 1% of Household Incomes By State

Nationally, households that earn $652,657 and above are among the Top 1% of Household Income Earners.


Figure 9: Top 1% Of Income Earners by State


Top 1% of Household Incomes By Age

According to the U.S. Federal Reserve 2022 Survey of Consumer Finances, here are the top 1% of household incomes by age. The Federal Reserve estimated the age range of the head of household according to the oldest individual reporting on behalf of their household income.


Figure 10: Top 1% of Household Income By Age


Net Worth Required To Be Rich In America

Another measure of wealth in America is household net worth (assets minus liabilities). For this information, we can look at the U.S. Federal Reserve, Changes in U.S. Family Finances from 2019 to 2022 (published October 2023).


Figure 11: Americans Net Worth



YahooFinance cited the U.S. Census Bureau’s Income in the United States: 2022 to estimate wealth in America for the lower, upper, and middle class.


Figure 12: Wealth In America


Conclusion

In conclusion, several measurements of wealth may be considered "rich" in America. In general, there is a consensus among Americans that an annual salary above $502,000 a year makes you rich, a high-net-worth individual is someone with wealth between $1 and $5 million, and a "rich" American household has a net worth of at least $2.5 million.


Sources Cited

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