What income qualifies as the top 5%?

What It Takes to Be in the Top 5% of Earners

In recent years, breaking into the top 5% of income earners in the U.S. has required a steady climb in earnings. According to available data, the threshold to join this group was $197,651 in 2016. By 2019, that figure had risen to $221,572, reflecting inflation, cost of living increases, and the growing concentration of wealth at the upper levels of the economy.

While $221,572 might sound high, it's important to remember this is household income—and even then, it's just the floor. Being in the top 5% doesn't mean luxury yachts or private islands for most people. For many, it means two high-earning professionals in a major city, working in fields like tech, law, finance, or medicine. Still, location matters: that income goes much further in rural areas than in places like New York or San Francisco.

Compare this to the ultra-wealthy—the top 0.001%—and the gap becomes staggering. In 2017, you needed over $63 million to crack that elite tier. That number jumped even higher in 2018, peaking at nearly $69 million, before dipping slightly in 2019. These figures aren't just about salaries; they include investment returns, capital gains, and business income—sources that scale dramatically with existing wealth.

The data shows a widening divide. While the threshold for the top 5% has grown steadily, the explosion in earnings at the very top highlights how income inequality has accelerated over the past decade. Making over $200,000 puts you ahead of 95% of earners, but in the broader picture, it's the much smaller group at the very peak that's pulling away entirely.