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Where millennials earn the most
Only 6.2% of millennial households earn $200,000 or more nationwide. But from state to state, that percentage of high-earning millennials can range from one-third of that to almost double. This group has more discretionary economic power than their peers, and an outsized portion of them among a statewide population—or an apparent deficit—could impact many aspects of that local economy.
With this in mind, SmartAsset ranked states by the percent of millennial households earning at least $200,000, which is the definition of a high-earning household according to the IRS.
Key Findings
- Washington has the most high-earning millennials at 11.5%. Out of nearly 1.26 million millennial households, 144,475 make at least $200,000 annually. These households earned an average adjusted gross income, or AGI, of $459,701.
- California has the most high-earning millennial households. Ranking fourth overall with 9.4% of its millennials earning $200,000 annually or more, California has more than double the number of high-earning millennial households as any other state at 589,524. The average AGI of these households came in at $557,054.
- 2.5% or less of millennial households are high earners in three states. Mississippi has the lowest rate of high-earning millennials at 2.1%, followed by West Virginia and New Mexico at 2.5%. Respectively, the high-earning millennials in these states earned an average AGI of $413,237; $367,511; and $384,019.
- High-earning millennials in Wyoming earn over $750,000 per year. Wyoming has the highest average AGI for this study, but only 4.1% of this age group—or 3,388 households—here qualify as high earners, placing Wyoming in 36th place overall.
Top 10 Places With the Most High-Earning Millennials
States are ranked by the percent of households aged 26 to 44 that earn $200,000 or more annually.
- Washington
- Percent of millennial households earning $200,000 or more in AGI: 11.50%
- Number of high-earning millennial households: 144,475
- Total millennial households of all income levels: 1,256,591
- Average AGI for high-earning millennials: $459,701
- Massachusetts
- Percent of millennial households earning $200,000 or more in AGI: 10.40%
- Number of high-earning millennial households: 112,546
- Total millennial households of all income levels: 1,082,360
- Average AGI for high-earning millennials: $479,226
- New Jersey
- Percent of millennial households earning $200,000 or more in AGI: 9.87%
- Number of high-earning millennial households: 137,998
- Total millennial households of all income levels: 1,398,815
- Average AGI for high-earning millennials: $439,477
- California
- Percent of millennial households earning $200,000 or more in AGI: 9.41%
- Number of high-earning millennial households: 589,524
- Total millennial households of all income levels: 6,264,943
- Average AGI for high-earning millennials: $557,054
- Connecticut
- Percent of millennial households earning $200,000 or more in AGI: 8.03%
- Number of high-earning millennial households: 42,967
- Total millennial households of all income levels: 534,852
- Average AGI for high-earning millennials: $548,007
- New York
- Percent of millennial households earning $200,000 or more in AGI: 7.69%
- Number of high-earning millennial households: 242,762
- Total millennial households of all income levels: 3,155,436
- Average AGI for high-earning millennials: $577,533
- Colorado
- Percent of millennial households earning $200,000 or more in AGI: 7.69%
- Number of high-earning millennial households: 76,264
- Total millennial households of all income levels: 992,048
- Average AGI for high-earning millennials: $451,535
- Virginia
- Percent of millennial households earning $200,000 or more in AGI: 7.53%
- Number of high-earning millennial households: 96,632
- Total millennial households of all income levels: 1,283,012
- Average AGI for high-earning millennials: $406,916
- Maryland
- Percent of millennial households earning $200,000 or more in AGI: 6.97%
- Number of high-earning millennial households: 65,541
- Total millennial households of all income levels: 940,339
- Average AGI for high-earning millennials: $377,635
- Illinois
- Percent of millennial households earning $200,000 or more in AGI: 6.70%
- Number of high-earning millennial households: 127,494
- Total millennial households of all income levels: 1,903,702
- Average AGI for high-earning millennials: $470,112
Data and Methodology
To determine where the share of high-earning millennials is highest, SmartAsset examined IRS data for the 2022 tax year. High-earning households are defined as those with adjusted gross incomes of $200,000 or more, which the IRS deems as the threshold for "high earners." For households aged 26 to 44, the number of tax returns earning a $200,000 or higher AGI was compared to the number of total tax returns in that age bracket and state. The average AGI for each state's high-earning millennial households was also considered.
