The term ‘top 2 percent’ often denotes the highest earning group in a standard population. Many individuals strive to join this elite group, but the income threshold can vary depending on factors like location, occupation, and economic conditions. The wealth possessed by the top 2 percent earners is beyond imagination. But what is top 2 percent income? In this article, we will inform you about the individuals in this group and how much money they make.
What is the Top 2 Percent Income? Everything To Know
Different countries will have different figures based on the power of their currency. A figure considered extraordinary in India may not be much more than what a middle-class American makes and so each country has its median salary level which helps find out what is the average salary of a person in a country and how much higher or lower they need to go to be considered rich or poor.
Strictly talking about the US, the figure of 206k dollars is considered the average amount that you need to make to be a part of the top 2 percent income group. Now what is just 2 lakh dollars in the US comes to a total of more than 1 crore in India which just makes a person a lower rich class person. So that is how different countries have different brackets or thresholds you need to cross to fit into a certain category.
Top 2 Percent Income in US
The average American makes 40,000 dollars or so and the top 10 percent make 1, 73,000 dollars on average. See the huge jump? Even the disparity between upper and lower 10% earners is vast with figures ranging from 133.5k dollars to 223k dollars.
For the top 5 percent, the average income was 343k dollars in 2020 after growing from 324k in 2019. However, the top 1 percent earned almost 900k or 500k depending on the state they lived in.
That’s right, more than figures it is about the location that you live in. Just as we mentioned above the median is set for different countries there is also a median set from state to state.
If you consider the US, the salary of a person from New York will vary vastly from a person in Texas even if their job profile is the same. This leads to discrepancies and so the top 2 percent income in US is considered when one earns more than 206k dollars, although the state you live in will significantly change these figures.
What is the Top 2 Percent Income?
Now you may ask what is the top 2 percent income, what does it mean? The answer is simple: it means that people who make enough for them to feature among the top 2 percent of the population when it comes to making money. So based on the money you make, you can be classified as a poor, middle-class, or rich person. More sick divisions can be created by dividing the categories further.
In India, a person making 25,000 a month or 300k a year comes in the group of top 10% earners. If converted to dollars then these figures come close to 300 dollars a month or 4,000 dollars a year. Whereas those in the top 10 percent earners in the US make more than 170k a year which when converted to Indian rupees comes to a total of more than 1 crore.
What Percentage of American Households Make More than $250k?
Now we know that you need to make more than 206k dollars in the US to feature among the top 2 percent income group. But this is just the average figure and the starting threshold to meet the requirement to feature in this group. Some people do make more than 206k dollars in a year but not enough to feature among the top 1 percent.
So that prompts us to ask what percentage of American households make more than $250k? Well, the numbers say that 5% of the American population makes 250k dollars a year, however, what’s more, surprising is that a third of them say that they live paycheck to paycheck. So while a sizable population makes enough to be considered among the top 2 percent earners in the US even that kind of money is not enough to keep them away from money issues.
What is Upper Class Income?
There are three main classes in every country which are lower, middle, and upper. Depending on what the headlines are and what the context is, the middle class can usually be split into higher and lower middle class whereas lower and upper classes see such division rarely. While we have looked at the top 2, 5, and 10 percent earners in the US we now ask what is upper class income and does it work just as a percentage or if there are different parameters to mark it.
It is said that a person making less than 52,500 dollars a year is considered to have a low income. 38% of Americans fit under this category. To be considered a middle-class earner the person needs to earn between 52,500 dollars and 156.6k dollars a year. The average American wage is 70,784 dollars. Coming to the upper class people, a person that makes more than 156.6k dollars a year fits this bill.
So there you have it. You could be someone who belongs to the upper middle class but that would still not be enough to help you feature among the top 2 percent income group who earn significantly more than what a base upper-class salary person does.
Also Read: What does 1 billion dollars look like?
How Much do I Need to Make to Be in the Top 2% Income?
From what we have seen so far the answer to the question of how much do I need to make to be in the top 2% income, would be more than 206k dollars a year. The figure is not constant and will change based on inflation and recession and vary from state to state and country to country. However, let us remind you again that just because you belong to the upper class does not mean that you belong to the top 2 percent of earners in the US.
How Much the Top 2% of Women and Men Earn in Every US State?
It is no secret that we live in times where gender still matters more than it should which is why we have problems like gender pay disparity in the workplace. This means that men and women in the top 2% don’t earn the same amount. While their incomes may fit the bracket to be counted in the top 2% of earners the average sum earned by both is bound to have disparity. So let’s find out how much the top 2% of women and men earn in every US state.
A man in the top 2% of Washington DC earners brings home 637,000 dollars but the women make only 280,000 dollars. Connecticut figures come at 658k dollars for a man and 214k dollars for a woman. New Jersey’s figure for men is 555k dollars and 200k for women. For Massachusetts, the figure earned by men in this group is 551k dollars and for women, it is 200k dollars. Ney York men among the 2 percent earners make 613k dollars while women make 200k dollars.
The top 2 percent income for men in Texas is 451k dollars and for women, it is 156k dollars. Maryland men make 482k dollars and women make 186k dollars. In California, men make 483k dollars and women make 200k dollars.
Illinois figures for men in the top 2 percent are 505k dollars and for women, it is 170k dollars. For Washington, the figure for men is 440k dollars and for women, it is 172k dollars. In the state of Virginia, men in the top 2 percent of earners make 460k dollars and women make 172k dollars.
For Rhode Island, figures for men and women are 383k and 150k dollars respectively. For Colorado, the figure is 264k and 160k dollars. In New Hampshire, the amounts earned by respective owners in the top 2% earners are 404k and 160k dollars.
Florida figures are 429k and 150k dollars. In Georgia, these figures go down to 419k and 150k dollars respectively. Utah figures are 362k dollars and 134k dollars. Tennessee figures for men and women are 390k and 135k dollars respectively.
The top 2 percent income for men and women in the state of Pennsylvania is 408k and 148k dollars. North Carolina figures are 416k and 150k dollars. Minnesota figures are 250k and 150k dollars respectively.
In Louisiana, these numbers are 346k and 125k dollars for men and women. Delaware figures are 403k and 150k dollars. In Arizona, these numbers are 367k and 140k dollars. In Oregon 378k and 150k dollars make the figure for men and women.
Ohio numbers for earners in the top 2% of men are 392k dollars and for women, it is 135k. Michigan numbers by gender are 382k and 140k dollars. Missouri figures are 387k and 130k dollars. Kentucky figures are 358k and 127k dollars. South Carolina figures are 347k and 130k dollars.
Montana figures are 354k and 125k dollars. Alaska figures for men is 200k dollars and for women, it is 150k dollars. Wisconsin figures are 211k dollars and 130k dollars. Oklahoma numbers for men are 375k dollars and for women, it is 120k dollars.
Men and women who feature in the top 2 percent income group in Nevada earn 357k and 130k dollars respectively. In Maine, such people earn 324k and 125k respectively.
Hawaii figures are 351k and 140k while Arkansas figures are 336k and 120k dollars. Vermont figures are 215k and 127k dollars. Nebraska figures are 384k and 120k dollars. In Kansas, these numbers are 215k and 130k dollars. In Alabama, these numbers change to 333k and 124k dollars.
Wyoming’s figures for such men and women are 425k and 120k whereas in Indiana these numbers change to 200k and 120k dollars. Figures in West Virginia are 283k and 120k dollars. In New Mexico, these numbers are 304k and 125k dollars. South Dakota figures are 186k and 101k dollars.
North Dakota figures are slightly worse at 170k and 100k dollars. In Mississippi, the numbers are 290k and 107k dollars. In Iowa, the numbers are 193k and 110k dollars and lastly, in Idaho, the numbers are 316k and 106k dollars.
The top 2 percent income represents a small, privileged fraction of society, encompassing high earners and wealth accumulation. This group holds significant economic power and often experiences greater financial security and opportunities compared to the majority. However, the implications of such concentration raise questions about income inequality and the distribution of resources in society.