Who Are High Income Earners in the US? 2025 Profile & Insights

Understanding who qualifies as a high income earner in the US is more relevant than ever in 2025, as income inequality, wealth concentration, and economic policies continue to dominate headlines and boardroom discussions alike. With the economic landscape in constant flux, defining this exclusive group—and grasping their priorities, behaviors, and viewpoints—offers vital insights not only for businesses, policymakers, and researchers but also for marketers and service providers. Whether you are strategizing market entry, considering investment opportunities, or simply hoping to better understand American society’s upper echelons, a nuanced profile of this demographic is crucial. Here, we provide a comprehensive deep dive into who the top 5% income earners in the US are, where they are concentrated, how their backgrounds influence their decisions, and what they really think about money, taxes, and opportunity. Actionable insights and the latest 2025 data—plus unique perspectives on reaching these audiences through reward-driven feedback platforms—await.

Who Qualifies as a High Income Earner in the US?

Defining "High Income" by Numbers

Not all definitions of high income are created equal. In the US, high income earners are typically positioned within the top 5% of the income distribution spectrum. As of 2025, this generally means those with annual household earnings above $169,800, according to the most recent Census Bureau estimates. It’s important to note that high income is a relative measure, shifting alongside national median incomes and regional economic growth. For several years, industry analysts have used the following threshold brackets:

• Household incomes above $169,800 (top 5% income US threshold)
• Ultra-high earners: $500,000+ (the upper echelons, varying by geography)
• Median household income nationwide: $75,580 (2025)

The range between the median and the top 5% illustrates the country’s wealth concentration and underscores why high income earners wield outsized influence both economically and culturally.

Regional Variations and Cost-of-Living Adjustments

Where you live in the US dramatically affects whether your paycheck counts as “high income.” In high-cost markets like New York, California, and Virginia, significantly higher earnings are needed to belong to the upper class—a household income of $200,000 in San Jose or $250,000 in Manhattan may only stretch as much as $120,000 to $150,000 in the Midwest. Some key data points illustrate these differences:

• The top 5% of earners in Virginia average $533,522 annually
• Sunnyvale, California stands out with 48.6% of households earning more than $200,000 per year
• Connecticut, New Jersey, and New York are hubs for affluent families, partly due to finance, tech, and pharmaceutical sectors

These disparities have fueled ongoing debates over taxation, cost-of-living adjustments, and what truly counts as upper-income household status in America.

Demographic Profile of High Income Earners

Age, Ethnicity, and Education

High income earners in the US are not a monolithic group, but certain demographic themes predominate among the nation’s economic elite:

• Age: Most high earners are between 45 and 64 years old, a period coinciding with peak career earnings and established professional networks.
• Ethnicity: Asian Americans, Americans of European descent, and—to a lesser degree—those of Oceanic origin are overrepresented among the top 5% income bracket. South Asians, in particular, outpace the average thanks to strong cultural emphases on education and entrepreneurship.
• Education: Nearly all upper-income households have at least one member with an advanced degree. MBAs, PhDs, and professional qualifications (law, medicine, engineering) dominate among household heads.

These demographic patterns reflect both opportunity structures and the outsized impact of networking, legacy admissions, and cultural priorities on economic attainment.

High Income States and Cities in 2025

Where do America’s top earners live? The geography of wealth continues to be dynamic, but several states and metropolitan regions consistently lead:

• Virginia and Connecticut: Affluent suburbs focusing on defense, government, and finance jobs.
• New York and New Jersey: Centers for banking, commerce, and technology; concentrations in Manhattan, Bergen County, and Westchester.
• California: Tech corridors (Silicon Valley), affluent coastal cities, and emerging innovation hubs.

Case Study Example: Sunnyvale, CA, stands as a statistical outlier—nearly half (48.6%) of its households earn more than $200,000 per year. With its proximity to top employers such as Apple and Google, the city exemplifies how tech sector growth reshapes income distribution at the local level.

How Do High Income Earners Think?

Financial Attitudes and Priorities

What motivates the financial decision-making of America’s top earners? Research and polling consistently highlight several defining traits and focal points:

• Financial Security: Protecting accumulated wealth, managing risk, and prioritizing stable investment portfolios (real estate, stocks, business interests)
• Education and Advancement: Willingness to spend aggressively on premium education for their children as a gateway to continued intergenerational prosperity
• Entrepreneurial Spirit: High rates of business ownership and startup investment, especially among specific immigrant communities
• Charitable Giving: Many high income individuals exhibit robust philanthropic engagement, supporting education, health, the arts, and innovation

Views on Taxes and Economic Policy

Upper-income households tend to have distinctive—sometimes divergent—perspectives on taxation and fiscal policy:

• Wealth Tax Skepticism: Many oppose new or expanded wealth taxes, citing concerns over double taxation and capital flight
• Interest in Tax Planning: Active engagement with tax professionals to minimize liability and leverage deductions, trusts, and investment vehicles
• Policy Influence: Greater likelihood of political donations, lobbying, and active participation in policy debates (e.g., estate tax, capital gains tax, business incentives)

Case in point: Polling from 2025 shows high earners support incremental, targeted tax reforms—for infrastructure or education—but prefer incentives over blanket increases. Industry matters as well; tech executives may support certain innovation-focused taxes, while real estate and finance professionals are more resistant.

Philanthropy, Politics, and Social Responsibility

Social responsibility often plays a prominent role in the lives of high income earners:

• Philanthropy: Emphasis on giving back, often via family foundations or donor-advised funds
• Politics: High rates of voter turnout, political philanthropy, and campaign involvement—frequently seeking candidates who promise stable growth, moderate reforms, and support for business-friendly policies
• Civic Engagement: Active participation on nonprofit boards, school councils, and community initiatives

Certain segments (e.g., tech entrepreneurs) often champion progressive causes (climate change mitigation, education reform), whereas traditional wealth holders may prioritize heritage institutions and established charities.

Key Trends and Shifts in American High Incomes

Growth in High-Income Households by City

The distribution of high income earners is shifting rapidly—a result of industry changes, migration patterns, and the rise of remote work:

• Tech-Driven Boom: Cities like Austin, TX; Raleigh, NC; and Boulder, CO have seen surges in upper-income households as startups and established tech firms expand their footprints beyond traditional coastal hubs like Silicon Valley and NYC.
• Remote Work Effect: High earners increasingly migrate to areas with lower cost of living and higher quality of life, further diversifying the geographic profile of wealth
• Regional Resurgence: Greater dispersion of wealth into secondary cities and suburbs; 2025 data reveals a notable uptick in $200,000+ households in places such as Bellevue, WA, and Charlotte, NC

Changes in Demographics Over Time

Three major shifts stand out over the past decade:

1. Growing Diversity: The proportion of high income earners who are first- or second-generation Americans is rising, due in part to South Asian, East Asian, and Eastern European immigrant success.
2. Later Peak Earnings: Americans increasingly achieve top earning power later, reflecting longer educational paths and delayed career milestones.
3. Gender Parity Increases (Slowly): More women are joining the upper-income bracket, but full parity has not yet been achieved, especially in sectors like finance and engineering.

Frequently Asked Questions

What jobs or industries produce the most high income earners in the US?

• Technology (especially executive and engineering roles)
• Finance and Investment Banking
• Medicine and Specialty Healthcare
• Law (partners, top legal counsel)
• Real Estate and Private Equity

How do high income earners feel about proposed wealth or income taxes?

• Generally skeptical of broad-based wealth taxes
• Support targeted reforms tied to tangible benefits (education, infrastructure)
• Proactive in tax planning and often influential in public debates
  

Where are high income earners concentrating geographically in 2025?

• Coastal states like California, New York, and Virginia
• Rapidly growing tech-centric cities: Austin, Raleigh, Sunnyvale
• Emerging secondary metro areas with tech and finance opportunities

Applying Insights: Engaging High Income Earners

Businesses, brands, and researchers hoping to reach high income earners must recognize how preferences, mobility, and cultural nuance drive their attitudes toward products, experiences, and customer feedback. Modern, reward-driven platforms such as PollPe are invaluable tools in this landscape: they enable frictionless feedback from affluent demographics by pairing seamless, mobile-first surveys with custom incentives. For organizations seeking to understand, engage, and win loyalty from this lucrative segment, embracing next-generation insights and adaptive technology isn’t optional—it’s essential. Ready to unlock next-level insights from your most valuable audiences? Start with PollPe’s robust free plan or book a personalized demo today.

--- Sources: [1] U.S. Census Bureau data, 2025 projections. [2] Tax Foundation analysis, 2025. [3] SmartAsset 2025 Income Study. [4] Pew Research Center, "Who are the highest income Americans?" 2024.