Introduction to Top Earners in Texas
To be considered one of the highest earners in Texas, residents need to make approximately $743,955, according to a new financial analysis from SmartAsset. This amount is about $18,000 less than what was required last year. Despite the decrease, it still represents a significant income threshold.
Methodology Behind the Analysis
SmartAsset analyzed 2022 IRS data for individual tax filers, which is the most recent year where data was available, and adjusted the income to May 2025 dollars to determine the income needed to be in the top one percent of earners. This approach provides a comprehensive understanding of the income requirements across different states.
National Trends and State Comparisons
Nationwide, the income needed to be in the top one percent decreased in every state except for North Dakota, Florida, and Oklahoma. The national average income required to be considered part of this exclusive group comes out to $731,492. Connecticut stands out as the only state where residents need to make more than $1 million to be considered a top one percent earner, with only 16,917 residents currently meeting this criterion.
Texas Ranking and Top Earners
Texas has the 10th highest income needed to be considered a top earner in the U.S., with a threshold $12,503 higher than the national average. A total of 128,130 Texans currently make enough money to be considered among the highest earners statewide, which is 2,002 more people than last year. For those aspiring to be among the top five percent of earners in the state, they would need to make $284,661 a year, about $4,000 more than last year’s income threshold.
Economic Conditions and Disparities
Economic conditions, tax policies, and cost of living vary significantly from state to state, resulting in wide disparities between what it takes to become a top one percent earner across the nation. Nearly 1.5 million households across the United States now rank among the top one percent of earners, according to the latest tax return data from the Internal Revenue Service (IRS).
Middle-Class Income in Houston
For Houstonians, making enough money to be considered "middle class" means having a yearly salary ranging between $41,754 and $125,274, according to a separate 2025 SmartAsset report. This range highlights the diversity in income requirements across different socioeconomic statuses within the same region.
Top States for High Earners
The top 10 states with the highest thresholds to be considered in the top 1 percent of earners in the U.S. are:
- Connecticut – $1,056,996
- Massachusetts – $965,170
- California – $905,396
- New Jersey – $901,082
- New York – $891,640
- Florida – $859,381
- Washington – $819,101
- Colorado – $772,989
- Wyoming – $771,369
- Texas – $743,955
Conclusion
In conclusion, the income required to be considered among the top earners in Texas and across the U.S. varies significantly, influenced by economic conditions, tax policies, and the cost of living in each state. Understanding these thresholds provides insight into the financial landscape and the challenges of achieving high-income status. As the economy continues to evolve, these figures are likely to change, reflecting broader shifts in income distribution and economic health.
