NASHVILLE, Tenn. (WKRN) – A new study is giving Tennesseans an idea of what takes to be part of the top 1% here in the Volunteer State.
Experts at the financial technology company, SmartAsset, have crunched the numbers by state and found that there is massive gap between top one percenters and and a middle class family in Tennessee.
According to the 2023 report, the top 1% of earners in Tennessee are making at least $535,000 per year. If you want to be a fraction of that, studies say you should at least make $220,000 a year — and that’s just to be included in the top 5%.
“There is a massive gap, the difference is really stark between being in the Top 1% where in TN that’s an income of 535K and the median, right in the middle, is just north of 40K. It’s a really wide differential in your income for that year,” said SmartAsset’s Susannah Snider, Managing Editor of Financial Education.
The U.S. average for the top 1% of earners is about $645,000 per year, making Tennessee around $100,000 below that.
So, how does the income of the top 1% compare to those around the country? Studies show it’s a big range among the states.
For example, to be a part of the top 1% in Connecticut you have to bring in at least $900,000 a year. On the contrary, the top earners in West Virginia bring in just under $375,000 a year.
“It requires a different income to be in the top 1% in Connecticut, than it does to be in the top 1% in West Virginia.” said Snider. “When you really drill down to the dollars and cents, and the AGI (Adjust Gross Income) somebody is taking home in a particular year, you are going to see this big range across the country.”
To view how much the top 1% of earners make in your state, click here.