To qualify as among the top earners in Texas, individuals need to earn approximately$18,000 lessMore than they did last year, according to a new financial analysis by SmartAsset. Even though this figure is lower, it still indicates that Texans need to earn $743,955 to be considered a top one-percent earner in the state in 2025.
To calculate the income required to be in the top one percent of earners, SmartAssetanalyzed2022 IRS information for individual tax returns, the latest year with available data, with income adjusted to May 2025 values.
Across the country, the income required to be in the top one percent dropped in all states except North Dakota, Florida, and Oklahoma. The average income needed nationally to be part of this elite group is $731,492.
Connecticut is the sole state where individuals must earn over $1 million to be classified as part of the top one percent, with only 16,917 residents meeting this criterion at present.
In the meantime, Texas ranks 10th in terms of the income required to be classified as a high earner within the United States. According to SmartAsset, the state’s threshold is $12,503 above the national average.
A total of 128,130 residents in Texas earn enough to be classified as among the state’s highest earners. This represents an increase of 2,002 individuals compared to the previous year. While the report does not specify where these top earners reside, it is entirely plausible that some live in Houston. Indeed, the city’s population has now exceeded2.39 million residents.
For individuals from Texas aiming to join the top five percent of income earners in the state, an annual salary of $284,661 is required, which is approximately $4,000 higher than the previous year’s threshold. According to the report, 640,648 Texans currently earn enough to be classified as part of the top 5 percent.
Approximately 1.5 million households throughout the United States are now part of the top one percent in terms of income, as per the most recent tax return information from the Internal Revenue Service (IRS),” the report stated. “Economic situations, tax laws, and the cost of living differ greatly from one state to another, leading to substantial differences in the income required to be in the top 1 percent nationwide.
For residents of Houston looking to earn a salary that qualifies them as “middle class,” the annual income typically falls within$41,754 and $125,274, according to a different 2025 SmartAsset report.
The leading 10 states where the income level required to be in the top 1% of earners in the U.S. is the highest are:
・Rank 1 – Connecticut ($1,056,996)
・Number 2 – Massachusetts ($965,170)
・Number 3 – California ($905,396)
・No. 4 – New Jersey ($901,082)
・Number 5 – New York ($891,640)
・Number 6 – Florida ($859,381)
・Number 7 – Washington ($819,101)
・No. 8 – Colorado ($772,989)
・No. 9 – Wyoming ($771,369)
・Number 10 – Texas ($743,955)
