The states with the highest percentage of people who make over $200,000 per year include:
- In New Jersey, close to 14 percent of households make over $200,000 per year.
- In Connecticut, close to 13 percent of households make over $200,000 per year.
- In Maryland, close to 13 percent of households make over $200,000 per year.
- In Massachusetts, close to 13 percent of households make over $200,000 per year.
- In California, close to 12 percent of households make over $200,000 per year.
On the other hand, the states with the lowest percentage of people who make over $200,000 per year include:
- In Mississippi, close to 3 percent of households make over $200,000 per year.
- In West Virginia, close to 3 percent of households make over $200,000 per year.
- In Alabama, close to 4 percent of households make over $200,000 per year.
- In Arkansas, close to 4 percent of households make over $200,000 per year.
- In Idaho, close to 4 percent of households make over $200,000 per year.
Is $200,000 Per Year a Lot of Money?
There are a few reasons why people are curious about the number of households that make over $200,000. In a lot of areas, this is the line to be considered wealthy. Families that bring in $200,000 generally experience significantly less financial stress when compared to other households. This is particularly helpful for families with children, as children can increase financial expenses significantly. Furthermore, because a lot of people are concerned about inflation, many people believe that this level of income will allow them to absorb the effects of inflation for the foreseeable future.
It is also important to think about the cost of living in a certain area. It costs significantly more money to survive in New York or California than it does in many places in rural America. For example, families that are living in New York City or Los Angeles might have a hard time making $200,000 go as far as someone who is living in Mississippi or Alabama.
Why Does Pay Rate Vary By State?
When looking at the numbers above, it is obvious that the pay rate can vary by state. The biggest reason why salaries can vary from state to state is that the cost of living also varies from state to state. This means that companies will have to pay someone more money in Los Angeles in New York City to do the same job as someone who is living in Idaho or Arkansas. Furthermore, many companies that offer high-paying jobs want to be close to other major companies or corporations. As a result, these companies tend to congregate in the same area, meaning that Chicago, New York City, and Los Angeles tend to have more higher-paying jobs. This is another reason why the pay rate can vary from place to place, leading to the distribution above.