Do You Rank Among The Top 10% Of Earners? Here's A Look At What Income You Need Based On Age

Your unique situation — cost of living, debt, family size, and career stage — determines your income level to meet your goals. However, understanding income percentiles offers a way to gauge your relative standing.

The number that often piques curiosity is the income required to be among the top 10% of earners in the United States. This income threshold can represent an aspirational target or simply provide perspective on where you stand compared to other American households. 

So what income do you need to crack the top 10%?

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The National Top 10% Income Threshold

According to the most recent data from the U.S. Census Bureau, the national threshold for being in the top 10% of household incomes in 2021 was $191,406 per year.

However, this single number doesn’t tell the full story. The income needed to be a top 10% earner varies considerably based on age and geographic location.

It's also important to note that financial surveys aren't conducted annually. While the data may be a couple of years ago, it still paints an accurate picture of what income places you among the top earners. 

Income Levels by Age Group

The national top 10% income figure of $191,406 represents the 90th percentile across all age groups combined. But when you break it down by age, a more nuanced picture emerges:

• Under 35: $122,000
• 35-44: $210,000
• 45-54: $255,000
• 55-64: $250,000
• 65-74: $188,000
• 75 and older: $128,000

The data shows that the income required to be a top 10% earner peaks around ages 45-54 at $255,000 annually. For those under 35, an income of $122,000 is enough to place them in the top 10% of their age group.

These age-based figures from the Census Bureau highlight how income levels fluctuate over a career lifetime. Younger households may initially fall into a higher percentile, while peak earning years tend to be in the 45-54 range for many professions.

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Impact of Geographic Location

In addition to age, geographic location plays a major role in determining what qualifies as a top 10% income. The cost of living varies drastically across the United States, so the income required to be an elite earner changes accordingly.

For example, California’s top 10% income threshold is $341,276 per year, reflecting the high costs in areas like the San Francisco Bay Area. On the other hand, the 90th percentile income in lower-cost Mississippi is just $189,922 annually.

Major metropolitan areas tend to have higher top 10% income levels than rural regions within the same state. So your income percentile can shift considerably by crossing state or county lines.

Average U.S. Household Income

To provide further context, the average (mean) household income in the United States was $79,900 in 2021, according to the latest Census data. The median household income, which can better represent the typical American household due to extremely high incomes skewing the mean, was $70,784.

While being a top 10% earner is an exclusive group, it’s important to remember that income is just one factor in overall financial well-being. Budgeting, investing, managing debt, and aligning income and living costs are equally crucial elements.

Knowing the benchmarks based on age and location can serve as a useful guidepost for those striving to be among the highest household income percentiles. The path will look different for everyone, but understanding these figures provides valuable context along the way.

Regardless of where you rank based on earnings, consulting a financial advisor can be wise, especially if you have complex financial goals or a significant amount of assets to manage. These experts can help you create a comprehensive plan tailored to your unique circumstances, risk tolerance, and long-term objectives, such as retirement planning, estate planning, or tax optimization strategies.

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.