How much you need to be in the top 5% in every state
State Sen. Luke Rankin, R-S.C., on a bill he introduced in South Carolina that would require high school students in the state to take a course in personal finance in order to graduate.
While the gap between the rich and poor has been widening for decades, the U.S. economy has seen improvements over the years.
According to figures from the U.S. Census Bureau's 2017 American Community Survey released last October, the median household income increased by more than $1,500 from 2016 to 2017 with both unemployment and poverty levels also dropping during that time.
While this is good news, the effects weren't felt equally across all 50 states, with much of the gain going to households that were already wealthy.
But just how wide is the income gap by state?
Using data from the Census Bureau's 2017 report along with statistics from the left-leaning Economic Policy Institute's income inequality report on the top 1 percent of households, GoBankingRates figured out how much a household needs to make "pre-tax" to be considered in their state's top 5 percent.
According to the report, the top five most expensive states to be considered in the top 5 percent are in the Northeast and California. However, on that same note, Maine came in as the 10th "cheapest" state to enter that elite group, which came as a surprise to the group's researchers.
On the other end of the spectrum, states with the cheapest entrance into the highest-earners group were mostly from the South with the exception of Maine, New Mexico and Idaho.
Below are the full results from the GoBankingRates' report.
10 STATES WITH THE CHEAPEST ENTRANCE TO THE TOP 5 PERCENT:
1. Mississippi
How much you need to be in the top 5 percent (lower end): $154,295
Top 5 percent mean annual household income: $255,454
2. West Virginia
How much you need to be in the top 5 percent (lower end):$155,823
Top 5 percent mean annual household income: $249,200
3. Arkansas
How much you need to be in the top 5 percent (lower end): $160,675
Top 5 percent mean annual household income: $277,187
4. Idaho
How much you need to be in the top 5 percent (lower end): $167,204
Top 5 percent mean annual household income: $286,974
5. Kentucky
How much you need to be in the top 5 percent (lower end): $167,532
Top 5 percent mean annual household income: $289,587
6. Alabama
How much you need to be in the top 5 percent (lower end): $170,906
Top 5 percent mean annual household income: $284,361
7. Indiana
How much you need to be in the top 5 percent (lower end): $173,021
Top 5 percent mean annual household income: $294,162
8. New Mexico
How much you need to be in the top 5 percent (lower end): $173,396
Top 5 percent mean annual household income: $280,094
9. South Carolina
How much you need to be in the top 5 percent (lower end): $174,555
Top 5 percent mean annual household income: $296,503
10. Oklahoma
How much you need to be in the top 5 percent (lower end): $175,805
Top 5 percent mean annual household income: $300,382
10 STATES WITH THE MOST EXPENSIVE ENTRANCE TO THE TOP 5 PERCENT:
1. Connecticut
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $529,367
2. New York
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $480,780
3. New Jersey
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $475,827
4. Massachusetts
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $460,251
5. California
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $447,207
6. Maryland
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $431,491
7. Virginia
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $403,190
8. Hawaii
How much you need to be in the top 5 percent (lower end): $238,820
Top 5 percent mean annual household income: $378,854
9. New Hampshire
How much you need to be in the top 5 percent (lower end):$229,425
Top 5 percent mean annual household income: $364,454
10. Washington
How much you need to be in the top 5 percent (lower end):$229,199
Top 5 percent mean annual household income: $378,374
How much you need to be in the top 5 percent in every state (minimum amount)
Mississippi $154,295
West Virginia $155,823
Arkansas $160,675
Idaho $167,204
Kentucky $167,532
Alabama $170,906
Indiana $173,021
New Mexico $173,396
South Carolina $174,555
Oklahoma $175,805
Montana $176,370
South Dakota $176,511
Maine $178,516
Tennessee $179,962
Iowa $180,304
Missouri $181,527
Wyoming $182,268
Louisiana $182,288
Wisconsin $182,897
Ohio $183,823
Nevada $184,901
Nebraska $185,422
Michigan $187,384
North Carolina $188,470
Kansas $189,252
Vermont $192,323
Arizona $195,113
Florida $196,433
Oregon $199,256
Georgia $202,025
Utah $202,202
North Dakota $203,744
Pennsylvania $206,534
Delaware $211,732
Rhode Island $214,529
Texas $218,061
Minnesota $218,790
Alaska $223,728
Illinois $227,304
Colorado $228,672
Washington $229,199
New Hampshire $229,425
Hawaii $238,820
California $250,000
Connecticut $250,000
Maryland $250,000
Massachusetts $250,000
New Jersey $250,000
New York $250,000
Virginia $250,000