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Incomes vary quite a bit throughout the United States. The median income is $70,260, according to the 2022 Survey of Consumer Finances (SCF). But households in the top 10% make significantly more.
It’s interesting to see how much money the wealthiest Americans make — and how your own income compares. Of Dollars and Data published research that explores the household incomes of the top 10%, 5%, and 1%. Read on to what kind of salary it takes to join those groups.
Incomes of the top 10%, 5%, and 1%
Here are the household income thresholds for the top 10%, 5%, and 1%:
- Top 10%: $248,610
- Top 5%: $390,209
- Top 1%: $1,199,812
As you can see, you need an income well over three times the national average to crack the top 10%. It takes another $140,000 on top of that to make the top 5%. And the 1% is making beaucoup bucks.
While a high income is helpful, it’s not just about what you make. It’s also about what you keep and invest for the future. If you aren’t investing yet, consider an account with a reputable brokerage. Click here for a list of our favorite stock brokers to get started today.
Those are also nationwide numbers, covering all demographics. They don’t account for age, which is an important factor in how much you earn. The average income increases until the 45-to-54 age range. Here’s what the top incomes look like for different age groups.
Income of the top 10% by age
If you’re under 35, you can break into the top 10% with an income of $146,000. The income threshold jumps up after that, though. It also peaks later with high earners, in the 55-to-64 age group. Here’s the full breakdown:
| Age Range | 90th Percentile Household Income |
|---|---|
| Under 35 | $146,000 |
| 35-44 | $249,000 |
| 45-54 | $310,000 |
| 55-64 | $316,000 |
| 65-74 | $254,000 |
| 75 and older | $170,000 |
Income of the top 1% by age
If you want to break into the top 1%, then once again, your best chance is while you’re young. It still takes an income well above average. And peak income comes even later for the 1%, all the way in the 65-to-74 age range. Here’s the full breakdown:
| Age Range | 99th Percentile Household Income |
|---|---|
| Under 35 | $465,000 |
| 35-44 | $1,066,000 |
| 45-54 | $1,384,000 |
| 55-64 | $1,481,000 |
| 65-74 | $1,545,000 |
| 75 and older | $812,000 |
Income matters — but there’s much more to being successful
Earning an above-average income can certainly help you financially. It’s not everything, though. There are many other important factors, including your net worth and your savings rate. After all, a high salary doesn’t do you much good if you spend it all.
If you’re trying to assess how you’re doing with money, here are the signs that you’re in a good financial position:
- You save money every month. Make sure you’re getting the most out of your savings, too, with a high-yield savings account. If you don’t have one yet, check out our list of the best savings accounts with the most competitive APYs.
- You’re investing for retirement. You can do this automatically by contributing to a 401(k) plan at your work. Individual retirement accounts (IRAs) are another good option.
- You have an emergency fund, or you’re working on it. It’s recommended that you have enough in your emergency savings to cover three to six months of living expenses.
- You have money left over to spend on yourself. Saving and investing is important, but don’t forget to set aside some fun money to use however you want.
A high income can be an impressive achievement, and an income in the top 10% sounds amazing. Remember that income alone doesn’t tell the whole story. Someone earning $500,000 per year could be working 80 hours a week and feel miserable. It’s good to look for ways to raise your income, while also making sure your money brings you a high quality of life.
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