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 a massive gap between the top one percenters 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.
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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.