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. 

SmartAsset

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.

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.

This story was produced by SmartAsset and reviewed and distributed by Stacker.