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Are you among the top 1% of earners in West Virginia? While it might seem like an exclusive club for the ultra-wealthy, the income needed to qualify for this elite status varies significantly across the U.S. According to a new by GoBankingRates, which used IRS data from 2021 and 2022 adjusted for inflation, the threshold to enter the top 1% depends heavily on where you live. And for those in West Virginia, that bar is lower than almost anywhere else in the country.

The 1% Threshold Across the U.S.

Five states — Connecticut, Massachusetts, California, Washington, and New Jersey — stand out as the most expensive places to be considered part of the 1%. In these states, residents need to earn more than $1 million annually to make the cut. But West Virginia, ranking at the bottom of the list, requires significantly less: just $435,302 per year.

This amount is less than half of what's required to be part of the 1% in most of the top-ranking states. For context, Connecticut tops the chart with a staggering $1,192,947 needed to qualify for its 1%, making West Virginia’s threshold look modest in comparison.

The 10 States with the Highest Income Thresholds for the Top 1%

1. Connecticut – $1,192,947
2. Massachusetts – $1,152,992
3. California – $1,072,248
4. Washington – $1,024,599
5. New Jersey – $1,010,101
6. New York – $999,747
7. Colorado – $896,273
8. Florida – $882,302
9. Wyoming – $872,896
10. New Hampshire – $839,742

These numbers highlight just how expensive it is to live in these states, where the cost of living and property values push up the required income to be in the 1%. Notably, Connecticut leads the pack, with its threshold almost three times that of West Virginia.

West Virginia: The Lowest Threshold in the U.S.

At $435,302, West Virginia has the lowest income threshold for entering the top 1%. This might seem like a high number to many, but when compared to other states, it underscores the state's lower cost of living and economic conditions. West Virginia’s median household income is among the lowest in the country, which explains why the 1% bar is also lower here.

The 10 States with the Lowest Income Thresholds for the Top 1%

41. Ohio – $601,685
42. Iowa – $591,921
43. Alabama – $577,017
44. Indiana – $572,403
45. Oklahoma – $559,981
46. Arkansas – $550,469
47. Kentucky – $532,013
48. New Mexico – $493,013
49. Mississippi – $456,309
50. West Virginia – $435,302

What Does This Mean for West Virginia?

While some might see West Virginia’s low threshold for the top 1% as a disadvantage, it reflects the broader economic landscape. West Virginia has long struggled with a declining population, an aging workforce, and a shifting economy. Being part of the 1% in the Mountain State is more accessible than in many parts of the country, but it also speaks to the state’s challenges in terms of wage growth and economic opportunities.

For those aiming to climb into this elite group, West Virginia offers a less competitive environment, but for many, the lower threshold is a reminder of the state’s broader economic hurdles.

Conclusion

Are you part of the top 1%? If you’re living in West Virginia, the bar is lower, but the implications are complex. While West Virginians need to earn less than their counterparts in other states to achieve 1% status, it also highlights the economic disparities across the U.S. As West Virginia continues to grapple with economic changes, the state's income distribution reflects the larger challenges it faces in attracting and retaining high earners.