(NEXSTAR) – The disparity between the income that an average U.S. resident brings in yearly compared to those sitting at the top of earners in each state has always been a major topic of discussion.
In fact, WalletHub states that “the highest-earning 10% of individuals in the United States earn over 12 times more than those in the lowest-earning 10%, based on the latest Census data.”
And while looking up what the “average salary” is across the country, ($74,600, according to the latest data from the Federal Reserve), appears to give a solid idea of how far off most Americans are from the 5% club, a closer look at the high-end salaries reveals that the disparity is even more stark.
WalletHub broke down the income of all 50 U.S. states and Washington D.C into three different groups: the average annual income of the top 5%, the average for the bottom 20%, and the median for all of each state’s residents.
Advertisement
Landing at No. 1 was New York where the top 5% makes about $553,000 a year. That’s almost $35,000 more than the next two highest states and nearly $100,000 more than the 10th-ranked state.
While the top 5% is thriving in the Empire State, its bottom 20% is falling well short, ranking 44th in salary with $13,301.
Right behind New York is Connecticut and Virginia where the average is about $518,000 apiece. Followed by New Jersey and Illinois which are both hovering around $505,000.
The state with the lowest top 5% threshold is Alaska, where earning roughly $321,000 will get you into the club. Hawaii and Vermont aren’t far behind where the top 5% makes about $334,000.
Check out what you need to make in your state:
Advertisement
Rank
State
Average Annual Income of Top 5%
Median Annual Income
Average Annual Income of Bottom 20%
1
New York
$553,436
$91,366
$13,301
2
Connecticut
$518,757
$114,156
$14,576
3
Virginia
$518,296
$89,393
$18,694
4
New Jersey
$505,621
$117,847
$16,445
5
Illinois
$504,800
$78,304
$16,192
6
Georgia
$487,870
$66,612
$16,472
7
Texas
$481,483
$70,513
$16,802
8
Washington
$474,067
$103,748
$18,223
9
Florida
$470,308
$68,818
$15,375
10
Massachusetts
$466,208
$127,760
$13,689
11
Minnesota
$464,981
$86,364
$19,797
12
Colorado
$456,603
$97,301
$18,451
13
California
$454,829
$123,988
$13,949
14
Tennessee
$453,539
$59,077
$15,679
15
District of Columbia
$450,892
$162,265
$9,011
16
North Carolina
$450,592
$63,025
$15,836
17
Utah
$448,195
$89,786
$22,491
18
Michigan
$446,114
$62,446
$17,019
19
Missouri
$446,069
$59,715
$16,821
20
Pennsylvania
$445,261
$74,711
$15,801
21
Ohio
$436,922
$61,904
$16,188
22
Maryland
$427,135
$124,693
$16,647
23
Arizona
$424,913
$74,375
$16,604
24
Kansas
$423,517
$68,489
$17,176
25
Nebraska
$416,325
$72,384
$17,380
26
Arkansas
$416,224
$51,032
$14,069
27
South Carolina
$412,771
$62,909
$13,996
28
Kentucky
$411,897
$55,629
$13,800
29
Oklahoma
$405,113
$57,215
$15,205
30
Idaho
$403,737
$70,041
$18,372
31
Delaware
$402,989
$87,173
$16,930
32
Wisconsin
$402,256
$72,602
$17,973
33
Nevada
$401,062
$80,366
$14,472
34
New Hampshire
$400,343
$110,205
$18,075
35
Indiana
$399,270
$64,170
$16,670
36
Alabama
$398,584
$55,480
$13,242
37
Montana
$395,720
$68,937
$15,337
38
Louisiana
$395,155
$56,282
$11,504
39
Iowa
$395,093
$68,974
$17,621
40
South Dakota
$393,809
$69,266
$17,252
41
North Dakota
$387,548
$79,874
$15,661
42
Wyoming
$387,280
$76,307
$16,199
43
Oregon
$377,399
$91,100
$14,720
44
Mississippi
$377,040
$46,880
$12,168
45
Rhode Island
$353,721
$104,252
$12,668
46
New Mexico
$351,972
$58,911
$11,944
47
West Virginia
$345,239
$52,719
$12,477
48
Maine
$338,866
$79,800
$13,749
49
Vermont
$334,470
$89,695
$14,477
50
Hawaii
$334,369
$141,832
$14,014
51
Alaska
$321,634
$113,934
$15,646
(Credit: WalletHub)
As for what state’s residents make the most money on average, Washington D.C. finished with the highest median income of $162,265. Unfortunately, D.C. also finished with the lowest salary for the average annual income of the bottom 20%, with $9,011.
Other states that had a high median income were Hawaii ($141,832), Massachusetts ($127,760), Maryland ($124,693), and California ($123,988).
These states with a smaller gap between the average earner and the top 5% make it easier to make the jump, but it’s still difficult.
According to GoBankingRates, it will take a variety of factors to make that jump. First, you need a steady increase in income. This could mean you are making better financial decisions, investing wisely, or perhaps experiencing career advancements.
Another factor is maybe having a solid investment strategy, look to see that you are getting positive returns on your investment and that you have a well-diversified portfolio.
Advertisement
Finally, prioritize your long-term financial stability. Look to prioritize saving over short-term pleasures.
And if you’re looking to go even higher than the top 5%, Forbes found that to be one of the top 1% of earners in the U.S., you need to bring in an annual salary of at least $597,815, so start saving up!
Evercore ISI senior managing director Mark Mahaney joins Varney & Co. to discuss the departure of Netflix Chairman Reed Hastings and to address questions about the company’s future leadership and strategy.
The state of Texas announced a lawsuit against streaming giant Netflix on Monday, accusing the company of spying on children and other consumers by collecting their data without consent and designing the platform to be addictive.
Texas claims that Netflix has falsely represented to consumers that it didn’t collect or share user data while it actually tracked and sold viewers’ habits and preferences to commercial data brokers and advertising technology companies.
Advertisement
The lawsuit, filed by Texas Attorney General Ken Paxton, claims that “Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit.”
The state of Texas announced a lawsuit against streaming giant Netflix on Monday. (Nikos Pekiaridis/NurPhoto via Getty Images)
“When you watch Netflix, Netflix watched you,” Texas added in the lawsuit.
NETFLIX CO-FOUNDER REED HASTINGS TO STEP DOWN, DEPARTURE IS ‘SPOOKING INVESTORS’
Ticker
Security
Last
Change
Change %
NFLX
NETFLIX INC.
85.39
-2.10
-2.40%
The complaint quotes comments made by former CEO Reed Hastings who said in 2020, while he was still leading the streaming company, that “we don’t collect anything,” amid questions over Big Tech companies’ data collection practices.
Advertisement
Netflix was also accused of quietly using “dark patterns” to keep users watching on its platform, such as an autoplay feature that starts a new show after a different show ends.
NETFLIX RAISES SUBSCRIPTION PRICES ACROSS ALL PLANS
Texas Attorney General Ken Paxton filed the lawsuit. (Cheney Orr/Reuters)
Paxton said in a press release that Netflix “has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it.”
The attorney general said he’s charging Netflix under the state’s Deceptive Trade Practices Act and seeks to require Netflix to stop the unlawful collection and disclosure of user data, require Netflix to disable autoplay by default on kid’s profiles, and to secure injunctive relief and civil penalties.
Six people were found dead inside a cargo train boxcar in a Texas city along the southern border on Sunday, officials said.
The bodies were found in a Union Pacific train at a rail yard in Laredo, around 160 miles south of San Antonio, just after 3:30 p.m. local time, said Jose Espinoza, a public information officer with the Laredo Police Department.
The circumstances of their deaths are unknown, said Laredo police spokesperson Joe Baeza, according to CNN affiliate KGNS, and an investigation is underway.
Union Pacific operates across the border and is the only railroad that services all access points into Mexico, according to the freight company’s website.
Advertisement
Temperatures on Sunday afternoon in Laredo were in the low-mid 90s, though it’s unclear whether heat was a factor.
Union Pacific said it was saddened by the incident and is working closely with law enforcement to investigate.
Laredo police said they received a call around 3 p.m. from an employee at the Union Pacific rail yard, KGNS reported. The bodies were discovered during a routine rail car inspection, police said. No survivors were found.
CNN has reached out to Laredo police for more information.
“It’s a very early phase of the investigation. There’s not a lot to reveal right now,” Baeza said, KGNS reported.
Advertisement
The immigration status and ages of the deceased are not yet known, Espinoza said.
US Customs and Border Protection referred CNN to the Laredo Police Department, saying “The incident remains under investigation by Laredo Police Department and Homeland Security Investigation and Texas Rangers.”
CNN has reached out to the Department of Homeland Security, HSI and the Texas Department of Public Safety.
“It’s a very unfortunate event,” Espinoza told CNN. “It was too many lives that were lost.”
This story has been updated with additional information.
Gov. Greg Abbott on Sunday directed the Texas Division of Emergency Management to activate state emergency response resources as a massive storm system threatens much of the state with hurricane-force winds, giant hail, and the risk of tornadoes.
Severe weather in Texas
The severe weather, expected to last through Monday morning, covers a vast footprint including West, North, East, Central, and South-Central Texas. Forecasters warned the system could produce wind gusts exceeding 75 mph and hail larger than 2 inches in diameter.
Advertisement
What they’re saying:
“Texas is prepared to confront the severe storms that pose a threat to communities all across our state,” Abbott said in a statement. He urged Texans to monitor local forecasts and warned motorists never to drive through flooded roadways, invoking the phrase, “Turn Around, Don’t Drown.”
Advertisement
Heavy rainfall is expected to be widespread, with some areas potentially seeing isolated totals of 3 to 6 inches, which could lead to significant flash flooding. As the system progresses, the threat is expected to shift toward the South and Southeast Texas coasts.
LIVE RADAR
In preparation, the governor has deployed a wide array of state assets to assist local officials, including:
Advertisement
Search and Rescue: Swiftwater and floodwater rescue boat squads and urban search and rescue teams from Texas A&M Task Forces 1, 2, and 3.
Aviation and Marine Support: Helicopters with hoist capabilities from the Department of Public Safety and Texas Parks and Wildlife, as well as Tactical Marine Units.
Infrastructure and Recovery: Texas Forest Service saw crews to clear debris from roads and Department of Transportation personnel to monitor highway conditions.
Medical and Utility Support: Emergency medical task forces with ambulances and all-terrain vehicles, along with monitors from the Public Utility Commission to coordinate power outage responses.
State agencies are also monitoring the state’s natural gas supply and water quality as the storms move through.
Officials encouraged residents to assemble emergency kits and check road conditions at DriveTexas.org before attempting to travel.
The Source: Information in this article is from the Governor Greg Abbott Press Office.