Regional Economic Conditions Shape Wealth Thresholds in Different States

Lynette Khalfani Cox, CEO of The Money Coach shares how varying cost of living, tax structures and local economies impact income requirements to be considered wealthy in different states according to a study by GOBankingRates. New Jersey has the highest threshold for being among the top 20% earners at $180,558 annually due to its high costs of living and affluent communities close to New York City. Mississippi requires only an annual income of $101,447 to be in this upper tier because of lower cost of living and economic structure. The study also highlights stark contrasts between states for the threshold required to belong to the top 5% earners with Connecticut’s at $602,707 being highest due to its concentration of high-income jobs and proximity to New York City’s financial industries. These disparities illustrate that regional economic conditions heavily influence income requirements for wealth. To view the full list, click here.