Highest Earning Americans Making $1M+ a Year

Introduction to Millionaire Earners

The number of Americans earning at least $1 million a year has more than doubled in a decade — but these seven-figure households are far from evenly spread, with coastal states claiming the biggest share of the moneyed elites. Yahoo News recently examined the latest available income data from the Internal Revenue Service for the year 2022 to find out which states had the greatest concentration of households with adjusted gross incomes of at least $1 million. That figure does not include home equity, stocks, bonds, 401(k) retirement savings plans, or other types of investments, which are part of a person’s net worth as opposed to earned income.

The analysis revealed that nationally, roughly 800,000 taxpayers had an annual income of $1 million or more, up from 470,000 in 2013. Notably, even that higher figure accounts for roughly 0.5% of the 153 million income tax returns filed in 2022, according to TaxFoundation.org.

Coastal States Top the List

Among all 50 states, Connecticut had by far the biggest share of affluent earners, boasting close to 90 million-dollar tax returns per 10,000 filers. One of the original 13 British Colonies and a bastion of “old money,” Connecticut has posted the slowest growth in millionaire earners since 2013—yet it still remained firmly in the lead. Connecticut had the highest share of millionaire earners in the whole country. Massachusetts had more than 76 million-dollar earners per 10,000 in 2022, while New York recorded over 71 seven-figure returns.

Realtor.com senior economic research analyst Hannah Jones says the financial dominance of the three Northeastern states comes as no surprise, especially to those familiar with the region’s ultraexpensive housing market. “The concentration of very high-income households in New York, Massachusetts, and Connecticut underpins steady demand for luxury housing, even when broader market conditions soften,” she says. “Strong financial and tech sectors feed upper-tier demand, keeping prices high in prime city and suburban markets like Manhattan, Boston, and Fairfield County.”

In July, Boston had the fifth-highest median list price across the top 50 US metros, approaching $842,000, followed by New York City, at $775,000, according to the latest monthly housing market trends report from Realtor.com. New York was among the east coast states leading the list. Florida, home of the billionaire enclaves of Palm Beach and Manalapan, saw the fourth-highest share of seven-figure gross incomes, at nearly 70 per 10,000 filings, while California, which has some of the most high-priced metros in the US, led by San Jose, recorded over 69 returns of $1 million or higher per 10,000.

Millionaire Earners Heading West

But those figures do not tell the whole story. Looking at the regions with the highest 10-year growth in millionaire earners, it is clear that the top earners are increasingly moving westward. Although Montana was home to just roughly 42 million-dollar earners per 10,000, it experienced a 254% increase in that income bracket compared with 2013—the highest growth of any state. Neighboring Idaho saw the second-fastest growth rate, at 209%.

Jones says these states offer appealing features that make them top destinations for the affluent. “Lower or no state income taxes, lifestyle amenities, and remote-work flexibility have drawn more wealthy buyers to these Mountain West states,” explains the analyst. “In-migration of high earners has driven sharp home-price gains, often far above local income levels, especially in Montana and resort towns like Jackson Hole, WY, and Bozeman, MT.”

As Realtor.com reported earlier this month, Montana stood out for having the nation’s biggest affordability gap, meaning that the difference between how much the typical household in the state earned annually and how much it ought to have earned to comfortably afford a median-priced home was the highest among all 50 states and Washington, DC. As of July, the typical Montana household earned $72,066 annually—nearly $100,000 less than the minimum recommended income needed to purchase a $649,900 home, the median price for the month.

“Limited supply in amenity-rich areas keeps prices elevated and affordability strained for locals,” confirms Jones. “The result is a sustained luxury market alongside displacement pressures for middle-income households.”

10 States with the Highest Share of Millionaire Earners

1. Connecticut: Million-dollar tax returns per 10,000 filers: 89.51, Total returns: 16,320
2. Massachusetts: Million-dollar tax returns per 10,000 filers: 76.43, Total returns: 27,270
3. New York: Million-dollar tax returns per 10,000 filers: 71.44, Total returns: 69,780
4. Florida: Million-dollar tax returns per 10,000 filers: 69.78, Total returns: 77,670
5. California: Million-dollar tax returns per 10,000 filers: 69.72, Total returns: 128,900
6. New Jersey: Million-dollar tax returns per 10,000 filers: 67.67, Total returns: 31,390
7. Alaska: Million-dollar tax returns per 10,000 filers: 62.69, Total returns: 1,760
8. Maryland: Million-dollar tax returns per 10,000 filers: 57.30, Total returns: 21,530
9. Washington: Million-dollar tax returns per 10,000 filers: 54.21, Total returns: 8,420
10. Colorado: Million-dollar tax returns per 10,000 filers: 54.20, Total returns: 73,930

Conclusion

The distribution of millionaire earners across the United States is not uniform, with certain states like Connecticut, Massachusetts, and New York having a significantly higher concentration of high-income households. The allure of these states can be attributed to their strong financial and tech sectors, as well as their ultraexpensive housing markets. However, there is a trend of millionaire earners moving westward, with states like Montana and Idaho experiencing high growth rates in this income bracket. This shift can be attributed to factors such as lower state income taxes, lifestyle amenities, and remote-work flexibility.

FAQs

• Q: Which state has the highest share of millionaire earners?
  A: Connecticut has the highest share of millionaire earners, with approximately 89.51 million-dollar tax returns per 10,000 filers.
• Q: What factors contribute to the high concentration of millionaire earners in certain states?
  A: Strong financial and tech sectors, ultraexpensive housing markets, and lifestyle amenities are among the factors that contribute to the high concentration of millionaire earners in certain states.
• Q: Are millionaire earners moving to other parts of the country?
  A: Yes, there is a trend of millionaire earners moving westward, with states like Montana and Idaho experiencing high growth rates in this income bracket.
• Q: What are the implications of the increasing number of millionaire earners in certain states?
  A: The increasing number of millionaire earners in certain states can lead to sustained luxury markets, displacement pressures for middle-income households, and affordability strains for locals.