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GOBankingRates

J. David Herman

The Salary Needed To Break Into the Top 5% in Each State’s Most Expensive City

Sean Pavone Art Wager DenisTangneyJr

Living in your state’s most expensive city is already a challenge, but reaching the top 5% of earners takes it to another level.

In 20 U.S. states, breaking into that elite bracket requires an annual income exceeding $1 million. That’s according to numbers compiled by GOBankingRates for a new analysis, which identified the most expensive city in each state along with how much the top 5% earn there.

Among the 50 cities listed, the average income needed to make the top 5% ranges from about $300,000 to nearly $2M. Annual living costs range from $45,000 to a whopping $678,000. Average home values span from $300,000 to $9.8M.

GBR’s study is based on data from the U.S. Census, Sperling’s Best Places, the Bureau of Labor Statistics, and Zillow, as well as Federal Reserve economic data. Here’s a state-by-state rundown, ranked in order from the highest average income to the lowest.

1. Palm Beach, Florida

Average income of top 5%: $1,970,003
Average overall household income: $356,467
Annual cost of living: $678,647
Average home value: $9,815,790

Consider This: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too

2. Winnetka, Illinois

Average income of top 5%: $1,767,322
Average overall household income: $457,404
Annual cost of living: $146,921
Average home value: $1,802,299

3. Short Hills, New Jersey

Average income of top 5%: $1,718,090
Average overall household income: $512,637
Annual cost of living: $176,349
Average home value: $2,200,390

Tim Roberts Photography / Shutterstock.com

4. Paradise Valley, Arizona

Average income of top 5%: $1,568,992
Average overall household income: $382,413
Annual cost of living: $250,749
Average home value: $3,389,435

5. University Park, Texas

Average income of top 5%: $1,548,263
Average overall household income: $389,868
Annual cost of living: $186,603
Average home value: $2,426,265

6. Beverly Hills, California

Average income of top 5%: $1,501,819
Average overall household income: $250,510
Annual cost of living: $389,370
Average home value: $5,437,332

Find Out: How Much You Need To Earn To Be Upper Middle Class in Every State

7. McLean, Virginia

Average income of top 5%: $1,500,907
Average overall household income: $364,591
Annual cost of living: $139,720
Average home value: $1,683,739

8. New Albany, Ohio

Average income of top 5%: $1,445,922
Average overall household income: $345,262
Annual cost of living: $70,044
Average home value: $698,170

9. Mercer Island, Washington

Average income of top 5%: $1,385,199
Average overall household income: $303,425
Annual cost of living: $183,751
Average home value: $2,376,240

10. Mountain Brook, Alabama

Average income of top 5%: $1,342,171
Average overall household income: $302,510
Annual cost of living: $93,244
Average home value: $1,029,829

11. Town and Country, Missouri

Average income of top 5%: $1,320,990
Average overall household income: $338,111
Annual cost of living: $98,842
Average home value: $1,130,559

Explore More: The Living Wage a Family of Four Needs in All 50 States

12. Incline Village, Nevada

Average income of top 5%: $1,291,717
Average overall household income: $254,080
Annual cost of living: $137,593
Average home value: $1,709,532

13. Potomac, Maryland

Average income of top 5%: $1,189,506
Average overall household income: $304,509
Annual cost of living: $117,460
Average home value: $1,346,846

14. Birmingham, Michigan

Average income of top 5%: $1,180,838
Average overall household income: $240,711
Annual cost of living: $78,042
Average home value: $806,287

Jonathan Ross / Getty Images/iStockphoto

15. Brentwood, Tennessee

Average income of top 5%: $1,163,347
Average overall household income: $261,248
Annual cost of living: $117,738
Average home value: $1,395,790

16. Leawood, Kansas

Average income of top 5%: $1,096,815
Average overall household income: $257,427
Annual cost of living: $74,869
Average home value: $758,206

Be Aware: How Far $1.5 Million in Retirement Savings Plus Social Security Goes in Every State

17. Edina, Minnesota

Average income of top 5%: $1,022,637
Average overall household income: $205,682
Annual cost of living: $74,250
Average home value: $757,255

SeanPavonePhoto / Getty Images/iStockphoto

18. Milton, Georgia

Average income of top 5%: $1,017,851
Average overall household income: $225,532
Annual cost of living: $89,357
Average home value: $951,952

19. Edwards, Colorado

Average income of top 5%: $1,002,554
Average overall household income: $161,910
Annual cost of living: $162,521
Average home value: $2,104,579

20. Zionsville, Indiana

Average income of top 5%: $1,002,057
Average overall household income: $220,563
Annual cost of living: $69,094
Average home value: $676,343

21. Lake Oswego, Oregon

Average income of top 5%: $954,992
Average overall household income: $207,312
Annual cost of living: $88,227
Average home value: $942,360

22. Alpine, Utah

Average income of top 5%: $940,005
Average overall household income: $196,331
Annual cost of living: $100,669
Average home value: $1,147,990

23. Weddington, North Carolina

Average income of top 5%: $934,927
Average overall household income: $245,672
Annual cost of living: $95,588
Average home value: $1,063,857

Paola Giannoni / Getty Images/iStockphoto

24. Jackson, Wyoming

Average income of top 5%: $916,532
Average overall household income: $165,982
Annual cost of living: $172,453
Average home value: $2,198,607

25. Great Neck, New York

Average income of top 5%: $809,396
Average overall household income: $190,601
Annual cost of living: $138,987
Average home value: $1,591,438

26. Hilton Head Island, South Carolina

Average income of top 5%: $794,461
Average overall household income: $152,870
Annual cost of living: $89,566
Average home value: $1,002,578

27. Stamford, Connecticut

Average income of top 5%: $792,115
Average overall household income: $157,064
Annual cost of living: $85,844
Average home value: $851,542

28. Newburyport, Massachusetts

Average income of top 5%: $765,379
Average overall household income: $183,697
Annual cost of living: $93,445
Average home value: $1,022,200

29. Newport, Rhode Island

Average income of top 5%: $758,016
Average overall household income: $128,819
Annual cost of living: $89,801
Average home value: $978,147

30. Madison, Mississippi

Average income of top 5%: $756,144
Average overall household income: $173,819
Annual cost of living: $50,759
Average home value: $410,437

31. Hockessin, Delaware

Average income of top 5%: $684,292
Average overall household income: $209,899
Annual cost of living: $66,153
Average home value: $596,605

Find Out: How Much House Does $300K, $400K and $500K Buy You in Every State?

32. Portsmouth, New Hampshire

Average income of top 5%: $666,151
Average overall household income: $143,256
Annual cost of living: $79,857
Average home value: $837,006

33. Edmond, Oklahoma

Average income of top 5%: $661,018
Average overall household income: $142,597
Annual cost of living: $47,844
Average home value: $350,864

34. Mandeville, Louisiana

Average income of top 5%: $604,022
Average overall household income: $134,276
Annual cost of living: $49,452
Average home value: $366,102

35. Bentonville, Arkansas

Average income of top 5%: $595,574
Average overall household income: $145,301
Annual cost of living: $54,956
Average home value: $486,863

36. Bozeman, Montana

Average income of top 5%: $577,498
Average overall household income: $115,764
Annual cost of living: $75,534
Average home value: $793,534

Discover More: How Long $2 Million in Retirement Will Last in Every State

37. Pewaukee, Wisconsin

Average income of top 5%: $572,534
Average overall household income: $153,033
Annual cost of living: $70,252
Average home value: $688,180

38. West Chester, Pennsylvania

Average income of top 5%: $563,824
Average overall household income: $113,270
Annual cost of living: $69,845
Average home value: $660,067

Photo by Lynn Betts / USDA Natural Resources Conservation Service

39. Clive, Iowa

Average income of top 5%: $559,510
Average overall household income: $156,724
Annual cost of living: $52,281
Average home value: $445,905

40. Papillion, Nebraska

Average income of top 5%: $546,508
Average overall household income: $135,054
Annual cost of living: $51,233
Average home value: $401,084

41. South Burlington, Vermont

Average income of top 5%: $507,441
Average overall household income: $130,015
Annual cost of living: $64,276
Average home value: $569,761

Discover More: Here’s the Line Between Middle Class and Upper-Middle Class in Every State

42. Portland, Maine

Average income of top 5%: $500,321
Average overall household income: $107,443
Annual cost of living: $61,051
Average home value: $567,247

43. Lahaina, Hawaii

Average income of top 5%: $462,053
Average overall household income: $117,651
Annual cost of living: $138,202
Average home value: $1,624,941

44. Juneau, Alaska

Average income of top 5%: $458,519
Average overall household income: $122,575
Annual cost of living: $58,812
Average home value: $493,530

45. Santa Fe, New Mexico

Average income of top 5%: $452,766
Average overall household income: $98,652
Annual cost of living: $62,088
Average home value: $599,595

DenisTangneyJr / Getty Images/iStockphoto

46. Spearfish, South Dakota

Average income of top 5%: $418,250
Average overall household income: $86,669
Annual cost of living: $55,291
Average home value: $457,083

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47. La Grange, Kentucky

Average income of top 5%: $406,117
Average overall household income: $103,164
Annual cost of living: $50,285
Average home value: $392,818

48. Bismarck, North Dakota

Average income of top 5%: $391,087
Average overall household income: $99,685
Annual cost of living: $47,553
Average home value: $382,839

49. Hailey, Idaho

Average income of top 5%: $332,906
Average overall household income: $99,530
Annual cost of living: $84,497
Average home value: $930,080

50. Martinsburg, West Virginia

Average income of top 5%: $257,085
Average overall household income: $72,996
Annual cost of living: $44,897
Average home value: $302,053

Photo Disclaimer: Imagery is for representational purposes and does not necessarily depict the city mentioned.

_{Methodology: For this study, GOBankingRates analyzed cities across the United States to find the amount needed to be among the top 5% earners in each state. Using Sperlings BestPlaces, the highest cost of living indexes within each state were identified. For each city, a number of factors were found including: total population ages 65 and over, total households, mean household income, median household income, lower income limit of the top 5%, and mean household income of the top 5% sourced from the US Census American Community Survey. Using the average expenditure costs for all residents, as sourced from the Bureau of Labor Statistics CEX, the average expenditure cost can be calculated for each city. The single family home value was sourced from Zillow Home Value Index and, by assuming a 10% downpayment and using the national average 30 year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. Using the average mortgage and expenditure cost, the total cost of living can be calculated for each city. The livability index was sourced from AreaVibes and included as supplemental information. The cities were sorted to show the highest average household income of the top 5% earners. All data is up to date as of December 4th, 2025.}

This article originally appeared on GOBankingRates.com: The Salary Needed To Break Into the Top 5% in Each State’s Most Expensive City

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