Yahoo Finance Here’s the Salary Needed To Crack the Top 5% in 5 Texas Cities
They say everything is bigger in Texas — and that may include the salaries of the elite. Joining the ranks of the highest earners in many of the state’s largest cities means earning some serious money.
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GOBankingRates conducted a study to find out how much you need to earn to be part of the top 5%. It’s clear there’s a real income disparity between each city’s top-earning households and that of the average household.
While high earners only make up 5% of their cities’ population, the percent of total household income they command is much more expansive. Interestingly, there’s even a notable gap between the lowest income limit needed to break into the top 5% club and the average household income of the top 5%.
Of course, even the lowest earners in the top 5% are bringing in an impressive income. For comparison purposes, real median household income was $74,580 in 2022, according to the U.S. Census Bureau.
Joining the wealthiest ranks in some of the biggest cities in Texas isn’t cheap. Here’s exactly how much a household needs to qualify.
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Arlington
Population: 393,469
Top 5% income lowest limit: $232,301
Top 5% income average: $358,865
Percent of household income by the top 5%: 19.38%
Median household income: $71,736
Average household income: $92,583
To become part of the top 5% in Arlington, your household will need to earn 2.5 times the city’s average household income. This might sound like a lot, but the average household in the top 5% earns nearly four times that.
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Fort Worth
Population: 924,663
Top 5% income lowest limit: $249,803
Top 5% income average: $406,613
Percent of household income by the top 5%: 20.91%
Median household income: $72,726
Average household income: $97,226
If you want to join the ranks of the top 5% in Fort Worth, you’ll need to earn roughly a quarter million dollars per year — at minimum. Notably, the average income in this elite group is more than four times the average household income in the city.
Houston
Population: 2.3 million
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $537,750
Percent of household income by the top 5%: 27.59%
Median household income: $60,440
Average household income: $97,458
The bottom tier of the top 5% of Houston households earns more than 2.5 times the city’s average household income. Even more extreme — the average income of top 5% of households is approximately 5.5 times that of the average household in the city.
Austin
Population: 958,202
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $565,822
Percent of household income by the top 5%: 23.10%
Median household income: $86,556
Average household income: $122,474
Your household needs to earn at least $250,000 per year to join the ranks of the top 5% in Austin. However, the average household in this club is actually bringing in more than double that at $565,822.
Dallas
Population: 1.3 million
Top 5% income lowest limit: $250,000-plus
Top 5% income average: $571,512
Percent of household income by the top 5%: 28.01%
Median household income: $63,985
Average household income: $102,023
To become part of the top 5% in Dallas, your household income would need to be around 2.5 times the city’s average household income. Incredibly, the top 5% income average is more than 5.5 times that of the average household — the highest in the state.
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This article originally appeared on GOBankingRates.com: Here’s the Salary Needed To Crack the Top 5% in 5 Texas Cities
