The Salary Needed To Crack the Top 5% in 9 California Cities
Living in many California cities isn’t cheap, but rising to the top 5% takes serious money. Results of a recent GOBankingRates survey revealed being part this group is only for notably high earners.
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Barely crossing the six-figure earning mark is enough to be a high earner in many U.S. cities, but this is only enough — or sometimes even not enough — to be considered average in these California cities. Worth noting, the real median household income in the U.S. was $74,580 in 2022, according to the U.S. Census Bureau.
Of course, this isn’t the case for the entire Golden State, as average salaries vary greatly by area. Here’s the annual household income you’ll need to be part of the top 5% in nine major California cities.
9. Fresno
Population: 541,528
Top 5% income lowest limit: $226,427
Top 5% income average: $379,858
Percent of household income by the top 5%: 22.12%
Median household income: $63,001
Average household income: $85,872
It’s the most affordable city on the list, but your annual household income still has to be at least $226,427 to become part of Fresno’s top 5%. This is more than 2.6 times the city’s average household income.
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8. Sacramento
Population: 523,600
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $409,032
Percent of household income by the top 5%: 20%
Median household income: $78,954
Average household income: $102,258
On average the top 5% households in Sacramento are earning $490,032 per year — four times the city’s average household income. Given this, it’s not surprising that the top 5% households make up 20% of the city’s household income.
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7. Bakersfield
Population: 404,321
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $421,975
Percent of household income by the top 5%: 21.25%
Median household income: $73,827
Average household income: $99,270
In Bakersfield, the average top 5% household income is 4.3 times the city’s average household income. A quarter-million dollar annual salary is needed to even break into this top-tier group.
6. Long Beach
Population: 462,293
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $425,993
Percent of household income by the top 5%: 20.42%
Median household income: $78,995
Average household income: $104,313
The average top 5% income in Long Beach is 5.4 times that of the city’s median household income. Given this, it’s easy to see how the top 5% command 20.42% of this Southern California city’s household income.
5. San Diego
Population: 1.4 million
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $572,131
Percent of household income by the top 5%: 21.58%
Median household income: $98,657
Average household income: $132,533
In San Diego, the average household income is 4.3 times less than the average household income of the top 5%. Worth noting, the average household income is well more than six figures.
4. Los Angeles
Population: 3.9 million
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $621,555
Percent of household income by the top 5%: 26.57%
Median household income: $76,244
Average household income: $116,961
The average income of the top 5% of households in Los Angeles is 8.2 times more than the city’s median household income. Notably, the top 5% of households commands more than one-quarter — 26.57% — of the household income in the city.
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3. Oakland
Population: 437,825
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $643,643
Percent of household income by the top 5%: 23.07%
Median household income: $94,389
Average household income: $139,468
The average income of top 5% households in Oakland is 4.6 times that of the city’s average household income. Elsewhere, even the city’s median household income would be considered above average, as it’s nearly in the six figures.
2. San Jose
Population: 1 million
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $722,013
Percent of household income by the top 5%: 20.07%
Median household income: $136,010
Average household income: $179,853
At first glance, you might think San Jose’s average household income of $179,853 is what it takes to get into the top 5% — but far from it. You’ll need to earn at least $250,000 annually, but the average household in this group actually brings in $722,013 per year.
1. San Francisco
Population: 851,036
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $937,518
Percent of household income by the top 5%: 23.75%
Median household income: $136,689
Average household income: $197,408
In San Francisco, there’s even a massive income disparity among the top 5%. You need to earn at least $250,000 per year to break into this club, but the average household is bringing in $937,518 per year — surprisingly only 4.7 times the city’s average household income.
This article originally appeared on GOBankingRates.com: The Salary Needed To Crack the Top 5% in 9 California Cities