New Analysis: Geographic Wealth Divide Grows as Salary Threshold for Top 5% Varies by State

According to a recent analysis by GoBankingRates, being wealthy varies greatly based on location within the United States. In Washington D.C., earning $719,000 annually is necessary to be among the top 5% of earners in that area. Connecticut has been identified as the wealthiest state with a required income of approximately $656,000 for individuals looking to join this elite group. The report highlights Washington State’s significant increase over recent years; while earning around $378,000 was sufficient to be considered wealthy in 2017, now it requires an annual salary exceeding half a million dollars ($544,000). Andrew Murray, lead data content researcher at GoBankingRates explained that the notable growth is directly attributed to the surge of high-paying companies like Amazon, located mainly in Seattle’s thriving tech sector. A recent shift across several U.S. States has led 12 states and Washington D.C. To exceed an annual income threshold of $500,000 for individuals seeking entry into this exclusive group – a phenomenon primarily influenced by the generous Covid relief programs enacted in response to the pandemic crisis last year, leading to booming stock prices, skyrocketing property values and expanded personal wealth holdings. The recovery from the epidemic has been beneficial but not uniformly distributed; while some lower-paid employees received pay hikes during this period, their overall share of national assets actually declined as a result of significant accumulation by richer individuals in society. For anyone interested in honing job interview skills or seeking career advice, CNBC Make It offers an online course and newsletter service to help people succeed at work, manage finances effectively, and improve personal growth prospects.