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Here’s the Income You Need To Be in the Top 5% of Americans (How Do You Compare?)

See where the line actually falls, and what it takes to cross it.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Nov. 11, 2026

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Ever wonder where you'd rank if the IRS lined up every tax return in the country from lowest to highest income? There's an actual dollar figure that marks the line between the top 5% and everyone else.

The number comes straight from federal tax filings. It's worth seeing exactly where that line sits, and how far away it is from the thresholds for the top 10%, top 25%, and beyond.

Editor's note: Figures come from IRS individual tax return data for tax year 2023, the most recent year published. Amounts reflect adjusted gross income per return, not household income or salary.

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How much do you need to earn to land in the top 5%?

Top 5% income floor: $272,209

According to the IRS, you needed adjusted gross income of at least $272,209 to land in the top 5% of individual tax returns for tax year 2023. That's the threshold, not an average. Any return reporting at least that much adjusted gross income falls into the top 5% nationally.

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What exactly counts as income here?

It's worth being clear about what this number measures. The $272,209 threshold is adjusted gross income per individual tax return, not household income and not salary alone. The ranking covers all individual returns except those filed by dependents.

Also worth noting: a married couple filing a joint return counts as a single return in this data. So the threshold applies per return, whether that return represents one earner or two.

How much of the country's income and taxes top earners report

For tax year 2023, the top 1% of returns accounted for 20.63% of all adjusted gross income reported nationally, and paid 38.40% of all income tax reported on individual returns.

The top 10% of returns accounted for 47.60% of total adjusted gross income and 70.54% of total income tax for tax year 2023.

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How the top 5% line stacks up against other tiers

Seeing the different thresholds side by side helps put the top 5% line in context. For tax year 2023, the adjusted gross income floors were:

Top 1%: $675,602
Top 5%: $272,209
Top 10%: $187,608
Top 25%: $105,604
Top 50%: $53,801

The top 5% threshold has also climbed in recent years. It was $252,840 in tax year 2021, rose to $261,591 in tax year 2022, and reached $272,209 in tax year 2023, all in current dollars.

What to do with your own income number

Pull your most recent tax return and find the adjusted gross income line, then see which tier it lands in.
Compare your combined adjusted gross income against these tiers if you file jointly, since a joint return counts as one return.
Track your income through the year so you have a rough idea of where you'll land before you file.
Check these thresholds again next year, since they move from one tax year to the next.

Bottom line

Cracking the top 5% of American tax returns took adjusted gross income of at least $272,209 for tax year 2023, according to the IRS. That threshold sits well below the $675,602 needed for the top 1%, and above the $187,608 mark for the top 10%.

These lines move every year, and they're based strictly on adjusted gross income per tax return, not on wealth, salary, or household income. Consider boosting your income with a side hustle to get you closer to that top 5%.

More from FinanceBuzz:

FAQ

Does being in the top 5% of earners mean you're rich?

It means one tax return reported at least $272,209 in adjusted gross income for tax year 2023. That's an income rank for a single year, not a measure of net worth or wealth.

How has the top 5% threshold changed in recent years?

It has risen each year recently. The floor was $252,840 for tax year 2021, climbed to $261,591 for tax year 2022, and reached $272,209 for tax year 2023, all measured in current dollars according to IRS data.

What's the difference between the top 1% and top 10% in terms of income share?

For tax year 2023, the top 1% of returns reported 20.63% of all adjusted gross income nationally and paid 38.40% of all income tax reported on individual returns. The top 10% accounted for a larger slice, 47.60% of total adjusted gross income and 70.54% of total income tax, according to the IRS.

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