retirement planning9 min read

What Income Puts You in the Top 10%? Complete Breakdown by Age and State

Discover what income level puts you in the top 10% of earners in America. See breakdowns by age, state, and how you compare to median and average incomes nationwide.

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What Income Makes You Top 10% in America?

To be in the top 10% of household income in the United States, you need to earn approximately $200,000 or more per year.

But this number varies dramatically by age, location, and whether we're talking about individual or household income. Let's break it all down.

Top 10% Income Thresholds (2026)

Household Income Percentiles

PercentileHousehold Income
Top 1%$785,000+
Top 5%$350,000+
**Top 10%****$200,000+**
Top 20%$145,000+
Top 25%$125,000+
Median (50%)$75,000

Individual Income Percentiles

For individual earners (not households):

PercentileIndividual Income
Top 1%$400,000+
Top 5%$200,000+
**Top 10%****$130,000+**
Top 20%$95,000+
Top 25%$82,000+
Median (50%)$45,000

Key insight: What makes you "top 10%" as an individual ($130k) is different from household ($200k). Most high-earning households have two incomes.

Top 10% Income by Age

Your income percentile depends heavily on where you are in your career:

Individual Income to Reach Top 10% by Age

Age GroupTop 10% ThresholdMedian Income
18-24$50,000$28,000
25-34$95,000$47,000
35-44$130,000$58,000
45-54$145,000$60,000
55-64$140,000$55,000
65+$110,000$35,000

Peak earning years are 45-54. That's when you need the highest income to crack the top 10%.

What This Means for You

  • **At 28 earning $90,000?** You're nearly top 10% for your age—impressive!
  • **At 50 earning $90,000?** You're above median but not top 10% for your age bracket
  • **Age matters a lot** when comparing yourself to others

Top 10% Income by State

Location dramatically affects what "top 10%" means:

Highest Thresholds (You Need More to Be Top 10%)

StateTop 10% Threshold
Connecticut$280,000
Massachusetts$275,000
New Jersey$270,000
California$265,000
New York$260,000
Washington$250,000
Maryland$245,000

Lowest Thresholds (Easier to Reach Top 10%)

StateTop 10% Threshold
Mississippi$135,000
West Virginia$140,000
Arkansas$145,000
New Mexico$150,000
Kentucky$152,000
Alabama$155,000
Louisiana$158,000

$200,000 in Mississippi puts you in the top 5%. The same income in Connecticut puts you around top 15%.

Mean vs. Median: Why Both Numbers Matter

You'll often see different income statistics. Here's why:

US Household Income (2026)

  • **Median:** $75,000 (half earn more, half earn less)
  • **Mean (average):** $105,000

Why is the mean higher? Because very high earners ($1M+) pull up the average, but don't affect the median.

What This Tells Us

  • **Median** is what the "typical" American household earns
  • **Mean** is skewed by high earners
  • The gap between them shows income inequality

If you earn $100,000, you're: - Above the median (top ~40%) - Below the mean (but the mean isn't a useful comparison)

How Do You Actually Compare?

Curious exactly where your income ranks?

Check out [AreYouBroke.io](https://areyoubroke.io) — a free calculator that shows your exact income percentile compared to the US, globally, and for your age group. You can also see where your net worth ranks and visualize the wealth distribution.

It answers the question "how rich am I really?" with actual data.

Top 10% Net Worth (The Other Half of the Equation)

High income doesn't always mean high wealth. Here's what top 10% net worth looks like:

Net Worth Percentiles (All Ages)

PercentileNet Worth
Top 1%$13,500,000+
Top 5%$4,000,000+
**Top 10%****$2,200,000+**
Top 20%$1,100,000+
Median (50%)$192,000

Net Worth by Age to Be Top 10%

Age GroupTop 10% Net Worth
Under 35$250,000+
35-44$750,000+
45-54$1,500,000+
55-64$2,500,000+
65-74$3,000,000+
75+$2,800,000+

Many high earners have low net worth due to lifestyle inflation, debt, or late starts saving.

The Psychology of Income Comparison

Why We Always Feel "Middle Class"

Interestingly, most Americans—from $30,000 to $300,000—identify as "middle class."

This happens because: 1. We compare to our peers (neighbors, coworkers) 2. Lifestyle expands with income (bigger house, nicer car) 3. We see people with more (social media, wealthy areas) 4. $200k in Manhattan feels different than $200k in Montana

The Hedonic Treadmill

Research shows happiness increases with income up to about $75,000-$100,000. After that, more money has diminishing returns on day-to-day happiness.

Being top 10% might not feel as different as you expect.

How Top 10% Earners Got There

What careers and paths lead to top 10% income?

Common Top 10% Professions

CareerTypical Top Earner Salary
Physicians/Surgeons$250,000-$500,000
Dentists$180,000-$250,000
Software Engineers (Senior)$150,000-$300,000
Lawyers (Partner)$200,000-$500,000
Pharmacists$130,000-$160,000
Financial Managers$150,000-$250,000
Engineering Managers$160,000-$220,000
Airline Pilots$150,000-$300,000
Business Executives$150,000-$500,000+

Paths to Top 10% Without Advanced Degrees

  • **Sales** (top performers in tech, pharma, finance)
  • **Skilled trades** (owning a plumbing/electrical business)
  • **Tech** (self-taught developers at major companies)
  • **Real estate** (successful agents, investors)
  • **Entrepreneurship** (successful small business owners)

What Should Top 10% Earners Do Differently?

If you're in the top 10%, your financial strategy should be different:

1. Max Out All Tax-Advantaged Accounts

  • 401(k): $24,500 (+ $7,500 catch-up if 50+)
  • Backdoor Roth IRA: $7,000
  • HSA: $8,550 (family)
  • **Total: $40,050+ per year**

2. Watch for Lifestyle Inflation

The biggest wealth destroyer for high earners isn't low income—it's spending everything.

The "top 10% trap": Earning $250k but spending $240k leaves you worse off than someone earning $80k and saving $20k.

3. Consider Tax-Efficient Investing

At high income levels: - Municipal bonds (tax-free interest) - Tax-loss harvesting - Roth conversions in lower-income years - Qualified dividends vs. ordinary income

4. Plan for Taxes

Top 10% earners face higher marginal rates: - $200k income: ~24-32% federal bracket - Plus state taxes (0-13% depending on state) - Plus Social Security/Medicare (7.65%)

Effective strategies: Maximize deductions, time income recognition, use tax-advantaged accounts

The Bottom Line

To be in the top 10% of US household income, you need about $200,000 per year.

But remember: - It varies by age (lower threshold when young, higher at peak earning years) - It varies by state ($135k in Mississippi, $280k in Connecticut) - Individual vs. household matters ($130k individual, $200k household) - Income ≠ wealth (what you keep matters more than what you earn)

Quick Reference

PercentileHousehold IncomeIndividual Income
Top 1%$785,000$400,000
Top 5%$350,000$200,000
Top 10%$200,000$130,000
Top 25%$125,000$82,000
Median$75,000$45,000

Want to know your exact percentile? Use a tool like [AreYouBroke.io](https://areyoubroke.io) to see exactly where your income and net worth rank compared to others in the US, globally, and for your specific age group.

Use our retirement calculator to see how your income translates into long-term wealth and retirement readiness!

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Your Information

years
years
$
$

That's $6,000 per year

%

Historical S&P 500 average: ~10% (before inflation)

%

Historical average: ~3% per year

%
10%22%32%37%
Future DollarsToday's Dollars

Your Estimated Retirement Savings

$1,475,835

In 35 years when you turn 65

Total Contributions
$260,000
Starting savings + monthly deposits
Interest Earned
$1,215,835
Compound growth over time
Tax Savings (Pre-Tax Contributions)
Annual Tax Savings
$1,320
Total Over 35 Years
$46,200
Your monthly contribution:$500
Tax savings per month:-$110
Net cost to your paycheck:$390

* Based on 22% tax bracket for traditional 401(k)/IRA contributions

Estimated Monthly Retirement Income
$4,919
$59,033 per year
%
1% (Conservative)4% (Standard)10% (Aggressive)

The 4% rule is a common guideline, but it balances income with longevity.

Savings Breakdown
Starting (3%)
Contributions (14%)
Interest (82%)

Projected Growth Over Time

Contributions
Interest Earned