News Summary
Texas has experienced a significant increase in the income threshold required to join the top 1% of earners, rising to $676,271. This marks a 24% jump compared to the previous year, showcasing the state’s economic growth and the increasing number of affluent residents. Prominent cities like Dallas and Austin are leading the way in millionaire growth, with Texas now ranking 15th in the nation for high-income earners. The evolving financial landscape is shaped by various factors, including economic trends and an influx of wealthy individuals during the pandemic.
Texas has seen a significant increase in the income required to be classified among the top 1% of earners, reaching $676,271 in 2021. This marks a $132,792 climb (24%) from the previous year, where the threshold was $543,479 in 2020. The rise in the top 1% income cutoff positions Texas at No. 15 among all states and Washington, D.C.
On a national scale, the income to qualify for the top 1% also surged by 25%, increasing from $699,008 in 2020 to 2021. Notably, since 2016, the minimum income cutoff for top earners in Texas has risen by $212,963 (46%). In 2021, 126,128 tax filers in Texas fell into this elite category, representing a 12% increase from just five years earlier.
Contributing Factors
The substantial growth in the number of high-income earners can be attributed to several economic trends. Rising salaries, a post-pandemic labor shortage, and the migration of wealthy individuals to Texas have all played roles in elevating the income levels in the state. Major metropolitan areas, particularly Dallas-Fort Worth and Austin, are experiencing notable surges in the affluent population. Dallas, in particular, ranks fourth for millionaire growth, boasting a 75% increase from 2013 to 2023. Austin has established itself as the fastest-growing millionaire hub, with a staggering 110% growth rate over the past decade.
Forbes 400 and Wealth Concentration
In 2021, Texas was home to 43 individuals listed on the Forbes 400, whose combined net worth reached $777 billion. A notable concentration of wealth exists in the Dallas-Fort Worth area, where 19 of these billionaires reside. This indicates a robust economic landscape that continues to attract and retain affluent residents.
National Comparisons and Migration Dynamics
While Texas’s income threshold for the top 1% has risen significantly, the overall number of Americans in this income bracket decreased by 2% from 2020 to 2021, dropping from 1,518,179 to 1,486,807. Washington, D.C., held the highest cutoff for the top 1% at $1,071,426, followed by Connecticut at $1,022,499. In contrast, states like West Virginia ($373,106), Mississippi ($391,112), and New Mexico ($422,572) reported the lowest income thresholds.
Examining changes from 2016 onwards, the national adjusted gross income cutoff for the top 1% has increased by 45%. States like Idaho and Wyoming observed the largest increases at 73%, while Oklahoma, Mississippi, and West Virginia recorded more modest growth rates, under 30%.
The Great Migration
The “Great Migration” during the COVID-19 pandemic significantly influenced these trends, leading to net migration and an influx of millionaires in states like Texas. However, economic projections suggest that the dynamics of this migration may be stabilizing, particularly as remote work opportunities wane and corporate policies tighten.
As Texas continues to grow economically, the impact of these trends on housing prices and tax bases will be critical to monitor, especially given the state’s positioning within the broader national context of high earners and economic resilience.
Deeper Dive: News & Info About This Topic
- Dallas CultureMap: Texas 1% Salary 2025
- Business Insider: Top 1% Income per State 2025
- SmartAsset: Top 1 Percent Income 2025
- Visual Capitalist: Mapped – The Income Needed to Join the Top 1%
- News Nation: How Much to Make Top 1 Percent
- Wikipedia: Income Inequality in the United States
- Google Search: Top 1 Percent Income in Texas
- Google Scholar: Income Inequality in Texas
- Encyclopedia Britannica: Income Inequality
- Google News: Texas Top Earners 2025
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
