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What it takes to be in the top 1% in Washington state

Washington, (Qnnflash) – To be part of Washington state’s top 1% of earners, you’d need an annual income of at least $804,853, according to a recent analysis by SmartAsset based on IRS tax filer data. This figure is significantly higher than the national threshold of $652,657 for the same category.

Interestingly, Washington’s top 1% benchmark exceeds the median household income in Seattle by over sevenfold. In 2021, the median household income in Seattle crossed $110,000.

The broader context shows that the wealthiest 1% of American families collectively held more than a third of the nation’s total wealth in 2019, according to a Congressional Budget Office report. In stark contrast, families in the bottom half accounted for only 2% of the total wealth during the same period.

Comparing across states, joining the top 1% ranks is costliest in Connecticut, where individuals need to earn at least $952,902. Conversely, West Virginia has the lowest threshold for its top earners at $367,582.

However, high earnings often come with high tax rates. For instance, Connecticut has the highest effective tax rate for high-income earners, standing at 28.4%. Nevertheless, the wealthy often employ various strategies to manage and reduce their tax burdens.

Washington state boasts some high earners who contribute to elevating the state’s average income figures. It’s home to two of the world’s ten wealthiest billionaires, as listed by Forbes. Furthermore, as of 2021, two of the three highest-paid CEOs on the S&P 500 are associated with Seattle-based companies.

The states with the highest requirements to join the 1% group, like Connecticut, Massachusetts, California, New Jersey, and Washington, are often either located in or within commuting distance of major tech and finance centers, offering lucrative employment opportunities in these industries.

For More Information :

https://www.axios.com/local/seattle/2023/08/10/washington-state-1-percent-earners

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