High earners are surprisingly concentrated in a handful of states.
The concept of earning a million dollars a year often brings to mind a life of extravagant luxury, but the geographic distribution of these high earners tells a more concentrated story. The nation’s top earners are not spread out evenly across the country; they are clustered in a select group of states with powerful economic engines. These are the hubs of finance, technology, and innovation where seven-figure incomes are most prevalent.
Based on the latest tax data, this is where America’s highest earners are most likely to call home.
1. California is in a league of its own.
It should come as no surprise that the Golden State is the undisputed king of high earners, boasting more million-dollar-a-year residents than any other state by a staggering margin. This immense concentration of wealth is powered by the twin engines of Silicon Valley’s tech industry and Southern California’s entertainment and media empire. The sheer scale of innovation and investment here creates incredible opportunities for wealth creation.
Living here in Ventura, you can feel the economic pull of the Los Angeles metro area. From tech billionaires in the Bay Area to movie stars in Hollywood, California is a magnet for top-tier talent and capital, which is directly reflected in its unmatched number of high-income tax filers.
2. New York is the financial capital of the world.
Hot on California’s heels, New York is the second-largest hub for million-dollar earners, a status it owes almost entirely to the immense power of Wall Street. The state is the global center of finance, banking, and investment, and the massive salaries and bonuses that come with those industries create a huge concentration of wealth, particularly in and around New York City. This is where fortunes are made.
The city’s prestigious law firms, advertising agencies, and corporate headquarters further bolster its numbers. While the state has a high tax burden, the unparalleled opportunities for high-level professional careers mean that for top earners, New York remains an essential place to be in order to build and maintain wealth.
3. Texas has a powerful combination of no income tax and big industry.
Texas has firmly established itself as a major economic powerhouse and a magnet for high earners. The state’s most powerful draw is its lack of a state income tax, which is incredibly appealing to wealthy individuals and businesses looking to relocate from high-tax states like California and New York. This has fueled a massive influx of both established wealth and new companies.
This pro-business climate is combined with the state’s traditional economic engines of oil and gas, as well as booming new tech hubs in cities like Austin and Dallas. This dynamic mix of factors has created a fertile ground for wealth generation, making Texas a top-three state for million-dollar earners.
4. Florida’s sunshine and tax laws are a magnet for wealth.
Like Texas, Florida’s lack of a state income tax makes it an incredibly attractive destination for wealthy individuals looking to maximize their earnings and preserve their estates. The state has seen a massive influx of high-net-worth individuals, including many retirees and remote workers, who are drawn to the favorable tax climate and the desirable lifestyle offered by cities like Miami, Palm Beach, and Naples.
This migration of wealth has been accompanied by a boom in the state’s financial services and technology sectors. This combination has turned Florida into one of the nation’s premier destinations for high earners, solidifying its place near the top of the list.
5. Illinois is powered by the economic might of Chicago.
Despite its reputation for high taxes, Illinois consistently ranks among the top states for million-dollar earners, a fact that speaks to the enduring economic power of Chicago. The Windy City is a major North American hub for finance, with its famous derivatives and commodities exchanges, as well as a thriving community of investment firms and corporate headquarters for major multinational companies.
This concentration of high-level business and financial activity in one of the nation’s largest metropolitan areas ensures that the state is home to a significant number of top executives, traders, and other professionals with seven-figure incomes.
6. New Jersey benefits from its proximity to New York City.
New Jersey’s high ranking is a testament to the old real estate adage: location, location, location. The state is home to many of the wealthiest suburbs in the New York City metropolitan area, where thousands of top executives and financial professionals choose to live. They earn their massive salaries in Manhattan but pay their property taxes and build their lives in the Garden State.
Beyond its status as a wealthy suburb, New Jersey also has its own powerful industries, particularly in pharmaceuticals and biotechnology, that contribute to its high number of top earners. It’s a state that benefits from both its own economy and that of its powerful neighbor.
7. Massachusetts has a high-tech, high-education economy.
Massachusetts, and specifically the greater Boston area, is a powerhouse of the “knowledge economy.” The state is a global leader in higher education, biotechnology, healthcare, and technology. This creates a dense concentration of highly educated and highly compensated professionals, from world-renowned doctors and scientists to tech entrepreneurs and venture capitalists who fund the next wave of innovation.
This potent mix of top-tier universities like Harvard and MIT, a thriving biotech sector, and a strong financial services industry makes Massachusetts a magnet for elite talent and, consequently, a state with a very high number of seven-figure incomes.
8. Pennsylvania is home to old money and new industries.
Pennsylvania’s presence on this list is a story of both old and new wealth. The state has a foundation of long-established wealth, particularly in the Philadelphia area, which has a strong base in law, medicine, and finance. This provides a steady number of high-income professionals who have been a part of the state’s economy for generations.
In recent years, this has been supplemented by the growth of new industries. Pittsburgh has transformed itself into a hub for technology, robotics, and healthcare, creating a new generation of high earners. This combination of established and emerging wealth keeps Pennsylvania firmly in the top tier.
9. Washington’s tech giants create immense wealth.
The state of Washington’s high number of million-dollar earners is almost entirely driven by the two tech behemoths that call the Seattle area home: Microsoft and Amazon. The immense wealth generated by these companies has had a profound impact on the state’s economy. High salaries, and more importantly, incredibly valuable stock options, have created a huge number of millionaires and high-income earners among their employees.
This concentration of tech wealth has also fostered a thriving ecosystem of startups and venture capital firms, further fueling the creation of high-paying jobs and making the Seattle metropolitan area one of the most affluent and expensive places to live in the country.
10. Connecticut is a traditional haven for hedge funds.
Connecticut has long been a preferred home for the nation’s financial elite, particularly those in the incredibly lucrative hedge fund industry. Wealthy towns in Fairfield County, like Greenwich, are famous for being bedroom communities for people who work on Wall Street, but the state is also a major hub for hedge funds in its own right, with many of the world’s largest funds based there.
The astronomical incomes earned by successful fund managers and traders ensure that this small state has one of the highest concentrations of million-dollar earners in the entire country. Its combination of low property taxes and proximity to New York City keeps it a powerful magnet for financial titans.
11. Virginia’s economy is fueled by its proximity to the capital.
Virginia’s place on this list is directly tied to its proximity to Washington, D.C. The affluent suburbs of Northern Virginia are home to a massive number of high-earning professionals who work in and around the nation’s capital. This includes not just government officials and lobbyists, but also a huge number of highly paid government contractors, particularly in the defense and technology sectors.
The immense amount of federal spending that flows into this region creates a stable and highly lucrative job market for those with the right skills and security clearances. This government-fueled economy ensures that Virginia is consistently one of the wealthiest states in the union.