How much do I have to earn in California to be considered rich? New study breaks it down

Brianna Taylor
·3 min read

How rich is rich in California?

As of 2022, the top 5% of earners in the state made $613,602 a year on average, according to a recent analysis from personal finance site GoBankingRates.

That’s roughly a 37% increase from 2017, when top earners raked in an average annual income of $447,207.

Washington took the top spot in the United States with a 43.9% increase in average annual income for top earners between 2017 and 2022, followed by Nevada with 40.4%, Idaho with 40.3% and South Carolina with 37.6%.

The Golden State ranked fifth.

“Over the five-year period of 2017 through 2022, wealth has changed significantly across most U.S. states,” GoBankingRates senior finance writer Heather Taylor wrote in an April 25 article titled “Here’s How Much the Definition of Rich Has Changed in Every State.” “The median income may be $500,000 or more for those in the top 5% depending on where you live.”

In 2017, Connecticut and Washington D.C. were the only U.S. states whose top 5% made a median annual income of at least $500,000.

That list has grown over the past five years to include 10 other states, such as California, Colorado, Hawaii and Washington state.

Also on the list are Illinois, Maryland, Massachusetts, New Jersey, New York and Virginia.

How did GoBankingRates analysis come up with data?

GoBankingRates used data from the U.S. Census Bureau to analyze each state’s median income, the average income of its top 20% of earners and the average income of its top 5% of earners.

Also examined was the five-year change in average income of the top 20% of earners.

North Dakota had the lowest five-year percentage increase in average income for top earners at 14.68%.

Which states are in the top 10 for income increases?

Here are the top 10 states that saw the largest percentage increase in average income for top earners between 2017 and 2022:

Washington

  • 2017 average income: $378,374

  • 2022 average income: $544,518

  • Five-year change: 43.9%

Nevada

  • 2017 average income: $320,403

  • 2022 average income: $449,872

  • Five-year change: 40.41%

Idaho

  • 2017 average income: $286,974

  • 2022 average income: $402,743

  • Five-year change: 40.34%

South Carolina

  • 2017 average income: $296,503

  • 2022 average income: $408,138

  • Five-year change: 37.65%

California

  • 2017 average income: $447,207

  • 2022 average income: $613,602

  • Five-year change: 37.21%

Utah

  • Five-year change: 36.96%

  • 2017 average income: $463,437

  • 2022 average income: $338,384

Oregon

  • 2017 average income: $329,517

  • 2022 average income: $448,649

  • Five-year change: 36.96%

Arkansas

  • 2017 average income: $277,187

  • 2022 average income: $377,043

  • Five-year change: 36.02%

Montana

  • 2017 average income: $302,605

  • 2022 average income: $411,205

  • Five-year change: 35.89%

Nebraska

  • 2017 average income: $302,217

  • 2022 average income: $407,646

  • Five-year change: 35.77%

Which U.S. state is home to the richest people?

Overall, Connecticut’s top 5% earners made the most money in 2022 compared to those in other U.S. states, with an average median annual income of $656,438.

In 2017, its top 5% made $127,071 less each year.

New York’s top 5% trailed closely behind, with an average median annual income of $621,301.

Massachusetts, New Jersey and California also had an average median annual income of at least $600,000.

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