The percentage of Americans who make $300,000 or more per year is relatively small. According to recent data from the US Census Bureau, the median household income in the United States in 2020 was $67,521. This means that half of American households earned more than this amount, while half earned less.
To get a sense of how many Americans earn $300,000 or more per year, we can look at data from the Internal Revenue Service (IRS). The IRS releases an annual report on the income of taxpayers in the United States, broken down by income level. According to the most recent data available from the IRS, which is from tax year 2019, only about 1.8% of tax filers had an adjusted gross income (AGI) of $300,000 or more.
It is important to note that this figure only represents tax filers, which does not necessarily capture all Americans who earn $300,000 or more per year. For example, some individuals or households may not file taxes due to various reasons such as not meeting the income threshold, filing jointly with their spouse, or because they do not earn taxable income.
Furthermore, the data also shows that the percentage of tax filers earning $300,000 or more has been increasing over time. In 2010, only 1.2% of tax filers reported an AGI of $300,000 or more. This figure increased to 1.8% by 2019, which represents a significant rise in the number of high earners over the past decade.
It is also worth noting that the income threshold of $300,000 or more is a relatively high one. In fact, the vast majority of Americans do not earn anywhere close to this amount. According to the US Census Bureau, the median individual income in 2020 was $35,977, while the median household income was $67,521. This means that the majority of Americans earn less than $70,000 per year, and only a very small percentage earn $300,000 or more.
In terms of demographics, the IRS data also provides some insights into who is most likely to earn $300,000 or more per year. Unsurprisingly, those with higher levels of education tend to earn more. In 2019, just over 11% of tax filers with a graduate degree reported an AGI of $300,000 or more, compared to just 0.2% of those with only a high school diploma.
Additionally, those living in certain parts of the country are more likely to earn high incomes. For example, residents of states such as California, New York, and Connecticut are more likely to earn $300,000 or more per year than those living in other parts of the country.
In conclusion, the percentage of Americans who earn $300,000 or more per year is relatively small, with only around 1.8% of tax filers reporting an AGI of this amount in 2019. This figure has been increasing over time, however, and is likely to continue to rise as income inequality in the United States continues to be a hotly debated issue. It is worth noting that the vast majority of Americans earn less than $70,000 per year, and that those with higher levels of education and those living in certain parts of the country are more likely to earn high incomes.
