The gap between America’s top earners and the typical household has never been more striking. In states like Illinois and Texas, the average income for the top 5 percent now exceeds six times that of the median household, according to the U.S. Census Bureau. Nationally, the Economic Policy Institute reports that income inequality has reached levels not seen since the 1920s, with the top 5 percent capturing a growing share of total wealth.
Experts warn that such disparities can limit economic mobility and deepen social divides, even in states with high overall prosperity. Here’s how the top 5% average income compares to median household income in 15 states.
Colorado
Colorado stands out for its high average income among the top 5 percent of earners, reaching $535,056, while the median household income is $92,470. This means the top 5 percent earn nearly 5.8 times more than the median household, highlighting a substantial income gap.
Neilsberg reports that the state ranks tenth in median household income, making it one of the nation’s wealthiest. According to the U.S. Census Bureau, Colorado’s Gini coefficient is 0.4576, indicating moderate income inequality. Analysts say these disparities hurt economic mobility, as wealthy households hold much more of the state’s income.
Virginia
Virginia’s income distribution reveals a striking contrast between the top 5 percent, who average $534,776, and the median household income of $90,974. The ratio of the top 5 percent to the median is about 5.9, reflecting a considerable gap between high earners and typical families.
Neilsberg reports that the top 5 percent in Virginia earn a mean income of over $547,000—nearly 2,800 percent more than the lowest quintile. The state’s Gini coefficient of 0.4716 underscores moderate income inequality, with experts suggesting targeted policies could help narrow this divide.
The U.S. Census Bureau’s quintile analysis shows that the highest earners in Virginia take home 16 times more than those in the lowest income group.
Maryland
Maryland boasts one of the highest median household incomes in the nation at $101,652, while the average income for the top 5 percent sits at $522,117. The income ratio of roughly 5.1 demonstrates that even in a prosperous state, the wealthiest households earn over five times more than the median.
Income By Zipcode shows that Census data places average household incomes above $300,000 in Maryland’s richest zip codes, with some exceeding $385,000. Nearly 19 percent of Maryland households earn $200,000 or more, reflecting the state’s concentration of affluent residents. Experts often cite Maryland as a case study in how high median incomes can coexist with significant income concentration at the top.
Illinois
Illinois presents a pronounced disparity, with the top 5 percent earning an average of $514,347, compared to a median household income of $81,702—a ratio of about 6.3. This gap places Illinois among the states with the widest income divides between its wealthiest and median households.
The Economic Policy Institute notes that the state’s income inequality has grown over the past two decades. Top earners have seen much faster income growth than the middle class. In Illinois, the top 5 percent earn over six times the median income, drawing attention to economic equity concerns.
New Hampshire
New Hampshire’s top 5 percent have an average income of $510,730, while the median household income is $95,628, resulting in a ratio of about 5.3. Neilsberg states that while the state has a relatively high median income, a significant wealth gap persists. The mean income for the top 5 percent is over $507,000, which is more than 2,100 percent higher than the lowest quintile.
With a Gini coefficient that signals moderate inequality, New Hampshire’s income distribution reflects both prosperity and persistent gaps. Experts highlight that such disparities may influence housing affordability and educational opportunities for middle-income families.
Hawaii
Hawaii’s top 5 percent earn an average of $505,977, while the median household income is $98,317, giving a ratio of about 5.2. The state’s income distribution shows that the wealthiest households earn nearly 2,500 percent more than those in the lowest quintile. Hawaii’s Gini coefficient of 0.4495 places it in the moderate inequality category, with analysts noting that high living costs further amplify the impact of income gaps.
The U.S. Census Bureau reports that the mean income for the top 5 percent in Hawaii is over $526,000, underscoring the concentration of wealth at the top. These disparities can affect access to housing and essential services for many residents.
Florida
Florida exhibits one of the largest income gaps among the states listed, with the top 5 percent earning $499,872 and the median household income at $71,711—a ratio of 7.0. Income By Zipcode shows Florida’s median income is about 9% below the national average, while top earners hold a larger share of wealth.
In 2023, the richest zip code in Florida reported an average household income of nearly $800,000, highlighting the state’s significant economic diversity. Experts suggest that such disparities may contribute to challenges in affordable housing and social mobility. The income distribution in Florida reflects a state where wealth is highly concentrated among a small segment of households.
Minnesota
Minnesota’s top 5 percent average $496,581 in income, compared to a median household income of $87,556, resulting in a ratio of about 5.7. Neilsberg shows that the state’s Gini coefficient of 0.45 reflects moderate inequality, with the top 5% earning over 2,300% more than the lowest quintile.
Analysts point out that while Minnesota enjoys a strong middle class, the wealth gap has grown, affecting economic opportunities for many families. The mean income for the top 5 percent is over $497,000, which is 175 percent higher than the highest quintile. These figures illustrate the persistent disparities even in states with relatively high overall incomes.
Texas
Texas demonstrates a significant income divide, with the top 5 percent earning $494,328 and the median household income at $76,292, producing a ratio of 6.5. Studies show that in major Texas cities, the top 5 percent command a disproportionately large share of household income. The average income within this group is more than five times the city average.
The gap between high earners and the median household has widened, reflecting broader national trends in income inequality. Experts note that economic growth in Texas has not been evenly distributed, resulting in stark contrasts between affluent and average households. The state’s large and diverse economy contributes to these pronounced disparities.
Rhode Island
Rhode Island’s top 5 percent earn an average of $489,811, while the median household income is $86,372, yielding a ratio of about 5.7. The state’s Gini coefficient of 0.4607 points to moderate income inequality, with the top 5 percent earning nearly 2,800 percent more than the lowest quintile.
Analysts observe that income disparities in Rhode Island are influenced by both economic structure and demographic factors. The mean income for the top 5 percent is over $477,000, which is 173 percent higher than the highest quintile. These figures highlight the challenge of ensuring broad-based economic prosperity in the state.
Delaware
Delaware’s top 5 percent average $477,949 in income, compared to a median household income of $82,855, for a ratio of about 5.8. The state’s Gini coefficient is 0.4495, reflecting moderate inequality, with the top 5 percent earning over 2,300 percent more than the lowest quintile.
The mean income for the top 5 percent is $463,843, which is 174 percent higher than the highest quintile. Analysts suggest that Delaware’s income distribution is shaped by its role as a corporate hub and its relatively small population. These dynamics contribute to noticeable variations in income across households.
Alaska
Alaska’s top 5 percent earn an average of $477,622, while the median household income stands at $89,336, resulting in a ratio of about 5.4. The state’s Gini coefficient of 0.4333 signals moderate income inequality, with the top 5 percent earning over 2,000 percent more than the lowest quintile.
The mean household income for the wealthiest group is $445,464, which is 164 percent higher than the highest quintile. Experts note that Alaska’s unique economic structure, including its reliance on resource industries, shapes its income distribution. These disparities can affect access to services and economic stability for many residents.
Nebraska
Nebraska’s top 5 percent average $471,960 in income, while the median household income is $74,985, giving a ratio of about 6.3. The state’s Gini coefficient of 0.4556 reflects moderate inequality, with the top 5 percent earning over 2,400 percent more than the lowest quintile.
The mean income for the top 5 percent is $447,231, which is 181 percent higher than the highest quintile. Analysts highlight that Nebraska’s income disparities are shaped by both urban and rural dynamics, with significant variations across regions. These gaps can influence economic opportunity and social mobility within the state.
Utah
Utah’s top 5 percent earn $468,606 on average, while the median household income is $91,750, resulting in a ratio of about 5.1. The state’s Gini coefficient of 0.4277 is among the lowest in the nation, indicating comparatively less income inequality. The mean income for the top 5 percent is $483,169, which is 175 percent higher than the highest quintile.
Experts note that Utah’s income distribution is characterized by a strong middle class and relatively even distribution compared to other states. Nevertheless, the wealth gap between the top earners and the median household remains significant.
Pennsylvania
Pennsylvania’s top 5 percent have an average income of $468,603, compared to a median household income of $76,081, producing a ratio of about 6.2. The state’s income inequality has grown over recent decades, with the top 5 percent seeing income growth outpace that of the middle class.
In the late 1990s, the richest 5 percent had 10.1 times the income of the bottom fifth; by the mid-2000s, this figure had risen to 12.2 times. Researchers at the Keystone Research Center note that most middle-class Pennsylvania families have seen stagnant wages despite rising productivity. These trends highlight the widening gap between high earners and the rest of the population.
Disclaimer –The Finance Key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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