Is making six figures enough to consider yourself wealthy today? Or does it take $500,000 to achieve that status?

In times of rising inflation, the definition of wealth is constantly changing. Prices for almost everything are on the rise.

Since early 2020, overall inflation has increased prices by 22%, according to analysis from the personal finance website Bankrate. To put it differently, you would need around $1,220 in late 2024 to have the same purchasing power as $1,000 did back in January 2020.

On average, Americans earn just under $60,000 a year, based on federal statistics. However, many believe that achieving financial security—or even true wealth—requires two to three times that amount.

“There’s a lot that contributes to the perception of wealth,” said Sarah Foster, an economist at Bankrate. “Inflation plays a significant role in this.”

“The classic image of a nice car and a lovely family home used to symbolize the middle class, but now it feels increasingly out of reach,” she added.

Currently, the highest-paying jobs are offering salaries in the region of $400,000. Surprisingly, earning $400,000 won’t place you in the top federal income tax bracket in 2025.

Here are seven salary figures that showcase what wealth looks like in America as 2024 wraps up.

$626,350

If you earn more than this amount in 2025, you will fall within the highest federal income tax bracket of 37% for individual taxpayers.

Under our tax system, higher earnings correspond to higher tax rates, specifically for the highest earners.

The gradual rise of tax thresholds highlights the ramifications of inflation; in 2020, individuals only started paying the 37% tax rate on incomes exceeding $518,400.

$520,000

This is the average income that Americans believe is necessary to feel wealthy, according to Bankrate’s Financial Freedom Survey from July.

Such a salary would comfortably place you among the top 2% of earners in the U.S.

Interestingly, when asked what income might make them feel secure or comfortable, Americans cited a significantly lower figure of $186,000.

“To be comfortable means having all your needs met, while being rich allows for additional luxuries,” explained Foster from Bankrate.

$483,000

This is the figure that respondents suggested they would need to feel wealthy back in 2023, based on the same Bankrate survey.

$400,000

The Biden Administration embraced this salary figure as a key income level for those deemed very wealthy.

When President Joe Biden proposed tax reforms for the affluent in 2023, he made it clear that individuals earning less than $400,000 would not be subject to any additional taxes.

Furthermore, when the IRS launched an initiative targeting high-income tax evaders that year, they stated that audit enforcement would primarily be directed at those with incomes exceeding $400,000.

As an annual figure, this amount roughly represents the top 2% of earners in the United States.

Why specifically $400,000?

“That’s a relatable benchmark for most people,” noted Caleb Silver, the editor-in-chief of Investopedia, the financial news platform.

$340,667

This figure represents the average income for the top 5% of earners in West Virginia, as reported in a recent GOBankingRates analysis from 2023.

In Connecticut, individuals in the top 5% of earners averaged $676,016.

Silver commented, “Wealth and the perception of being wealthy depend greatly on your spending habits and geographical location.”

The top income brackets are experiencing significant growth. Back in 2018, only two states had an average income surpassing $500,000 for the top 5% of earners. By 2023, that number rose to 12 states.

Andrew Murray, head of internal research at GOBankingRates, shared, “It certainly feels like some individuals reside in an entirely different reality; it’s hard to even comprehend that level of wealth.”

$295,000

This sum positions you within the top 5% of American households, per 2022 Census data.

That’s just the baseline; the average earning within that top 5% was $499,900 in 2022.

$270,214

This figure represents the average annual income needed to achieve “financial success,” as highlighted in a September survey by financial services company Empower.

The survey unveiled varying definitions of success across age groups. Baby Boomers identified a salary of $99,874 as indicative of success, while Gen Z individuals placed that figure at $587,797.

Rebecca Rickert, head of communication for Empower, remarked, “Younger generations are calculating their needs; they anticipate requiring a substantial financial cushion to thrive.”