News & Trending Money News

Here's the Income You Need to Be in the Top 1% of Americans

The IRS ranks every tax return by income, and that ranking draws a hard line for the top 1%. Here's where the line falls.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Oct. 15, 2026

Add Us On Google

Ever wonder what it actually takes to be a "top earner" in the eyes of the IRS?

Each year, the IRS publishes income rankings for individual tax returns, excluding returns filed by dependents. Those rankings show the adjusted gross income thresholds for the top 1%, top 10%, and other groups. Here's where those lines fall, and what it means if you're wondering how to grow your wealth or how you stack up.

Editor's note: Figures come from IRS Statistics of Income data for tax year 2023, the most recent year available. The rankings cover individual tax returns, excluding dependent filers, rather than people or households. Married couples filing jointly count as one return.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

So how much do you need to earn to be in the top 1%?

Threshold: $675,602

To land in the top 1% of American tax filers for tax year 2023, you'd need an adjusted gross income of at least $675,602, according to IRS data. That's the income floor, the point where the top 1% begins, not an average of what people in that group earn.

The ranking covers individual tax returns, leaving out returns filed by dependents, and sorts them by adjusted gross income in current dollars.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

What that income number actually counts

These thresholds are based on adjusted gross income reported on an individual tax return. That's not the same thing as a salary, and it's not household income either.

Each tax return counts as one unit in this ranking, whether it's filed by a single person or by a married couple filing jointly. So a couple filing together is measured as one return against this threshold, not as two separate incomes.

How much of the nation's income and taxes the top 1% covers

Among the individual returns included in this IRS ranking, the top 1% accounted for 20.63% of adjusted gross income and 38.40% of total federal individual income tax for tax year 2023.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.¹ <p>Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating. "Debt-Free" applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Results vary.</p>

How the top 1% compares with other income tiers

The IRS breaks the 2023 ranking into several tiers. The top 5% starts at an adjusted gross income of $272,209. The top 10% begins at $187,608, and the top 25% starts at $105,604. To be in the top half of all filers, you'd need adjusted gross income of at least $53,801.

The top 1% threshold has moved around in recent years. It was $682,577 for tax year 2021, dropped to $663,164 for tax year 2022, then rose to $675,602 for tax year 2023, all in current dollars, per IRS data.

How to size up your own income

Pull up your most recent tax return and find your adjusted gross income, since that's the figure these thresholds measure.
Compare that number against the tiers above to see which one you land in.
Look at two or three years of returns instead of just one, so a single unusual year doesn't skew your read.
Ask a tax professional if you want help making sense of what's on your own return.

Bottom line

Knowing where you stand financially is beneficial on many levels. Cracking the top 1% of American tax filers took an adjusted gross income of $675,602 for tax year 2023, according to IRS data. That's a return-level measure, so couples filing jointly are counted together, not as two separate incomes.

The distance between tiers is wide: the top half of filers starts at $53,801, while the top 1% starts at $675,602. These thresholds come from a single tax year, and they move from year to year.

FAQs

Does being in the top 10% mean you're rich?

It depends on how you define rich. The top 10% of returns for tax year 2023 started at an adjusted gross income of $187,608, and that group accounted for 47.60% of all adjusted gross income and paid 70.54% of all income tax reported on individual returns, per IRS data. It's still well below the $675,602 floor for the top 1%.

How has the top 1% threshold moved recently?

The top 1% threshold was $682,577 for tax year 2021, $663,164 for tax year 2022, and $675,602 for tax year 2023, according to IRS figures. The top 1%'s share of total adjusted gross income went from 26.30% in 2021 to 22.44% in 2022 to 20.63% in 2023, and its share of total income tax reported on individual returns went from 45.78% to 40.43% to 38.40% over the same three years.

Can retirees land in these top income tiers?

Yes. The tiers cover individual tax returns, other than those filed by dependents, ranked by adjusted gross income, so a retired filer counts the same as anyone else. A 2023 return showing at least $187,608 of adjusted gross income was in the top 10%, and one showing at least $675,602 was in the top 1%.

More from FinanceBuzz:

Intro APR on purchases and balance transfers
$0 annual fee
Apply Now

Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 17.74% - 26.74% Standard Variable Purchase APR applies, based on credit worthiness
INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
Redeem cash back for any amount. No annual fee
Terms and conditions apply

4.7

Apply Now

on Issuer's secure website

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300

Annual Fee

Why we like it