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Here's how much it takes to earn a top 1 percent salary in Texas

Top one percent of earners, high earning Texans, wealthy Americans

Texans now need to make $130,241 more in 2024 to maintain their status as one of the highest earners in the state.

With two Houston-area neighbors cashing in among the most wealthy suburbs in America, Houstonains may be wondering how much money they need to make to secure a place in the top one percent of earners. According to a new study from SmartAsset, the pre-tax salary required to be considered one of the highest earners in Texas amounts to $762,090 in 2024.

Texas has the 14th highest pre-tax salary needed to be considered in the top one percent of earners in the U.S. for the second year in a row. Texas' income threshold is not too far off from the national average, which is $787,712.

The study further revealed 126,128 Texans are within the top one percent of earners. For more context, the U.S. Census Bureau says over 30 million people lived in Texas as of 2022, and Houston's population grew to 2.3 million people in 2023.

Connecticut continues to lead the nation with the highest income threshold required to be in the top one percent, with residents needing to make over $1.15 million pre-tax.

To determine the income needed to be in the top one percent of earners in each state, SmartAsset analyzed 2021 IRS data for individual tax filers, which is the most recent year where data was available. Income data was then adjusted to June 2024 dollars.

Compared to SmartAsset's 2023 report, Texans now need to make $130,241 more in 2024 to maintain their status as one of the highest earners in the state. Last year, the income threshold was $631,849.

If Houstonians aim to be within the top five percent of earners in Texas, the pre-tax income threshold is drastically lower, at $280,676. However, for many Houston residents, achieving even a "middle class" status means making between $40,280 and $120,852 a year.

Meanwhile, the study says the median income in the U.S. comes out to roughly $75,000, and half of Americans are making even less than that. The income disparity is plainly obvious when high-income earners make (at a minimum) 10 times more than the national median income.

The report goes on to say top-earning Americans make up a "disproportionately large part of the tax base," as their income results in paying a 37 percent federal tax bracket rate. (That is, if these high earners are even paying taxes in the first place, considering America's wealthiest are already evading over $150 billion a year in taxes.)

"While state and local level taxes may impact the spread of high earners in those areas, the cost of living can also be drastically different nationwide," the report said. "As a result, what it takes to be considered a top one percent income earner can differ by over $500,000 from state to state."

The top 10 states with the highest thresholds to be considered in the top one percent of earners in the U.S. are:

No. 1 – Connecticut ($1,152,254)
No. 2 – Massachusetts ($1,113,662)
No. 3 – California ($1,035,673)
No. 4 – Washington ($989,649)
No. 5 – New Jersey ($975,645)
No. 6 – New York ($965,645)
No. 7 – Colorado ($865,700)
No. 8 – Florida ($852,206)
No. 9 – Wyoming ($843,121)
No. 10 – New Hampshire ($811,098)

The full report can be found on smartasset.com.

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Preserving Houston's history

Historic Houston theater secures $7 million loan to begin renovations

Garden Oaks theater renovation rendering

Courtesy of Arthouse Houston

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A historic Houston movie theater has secured the necessary funds to move forward with its renovation and redevelopment plans.

Community non-profit Arthouse Houston announced on Tuesday, November 10, that it had closed on a seller-financed loan to purchase the Garden Oaks Theater. Thanks to support from 900 donors, Arthouse closed on the $7.1 million property purchase today, putting $2 million down and saving the building from demolition.

“The wind is in our sails,” Arthouse Houston director Maureen McNamara said in a statement. “We expect this level of community support and energy to grow and spread as we enter into the restoration and renovation phase that is coming next. We will restore the original marquee and neon blade sign that was removed but saved. We will apply for national, state, and local historic designations, then seek protected landmark designation as soon as possible once the building loan is paid off.”

Saving the postwar Art Deco cinema on N. Shepherd Dr. has been Arthouse’s primary mission as of late, getting a lot of help from both local devotees and famous natives. Last summer, the organization held the Wes Anderson Homecoming Soiree, where the Houston-born, Oscar-winning auteur came back to Houston to shake some hands and support the endeavor. (Both he and fellow Oscar-winning hometown boy Richard Linklater have been avid supporters.) In September, Arthouse announced that it was only $400,000 short of a targeted $3.1 million goal to cover the down payment and carrying costs.

The true goal for the Garden Oaks is to transform it into an arts and film center, with year-round film and arts programming, film production, eateries, art, and educational resources. The theater will be able to host major film premieres, live performances, and festivals in its 700-plus seat main auditorium. According to McNamara, “Local groups such as Houston Association of Producers, Southwest Alternative Media Project, Performing Arts Houston, HCAS and many more have expressed interest in being part of the new arts center.”

Arthouse has now begun a capital campaign for the estimated $18-20 million project, seeking support from foundations, major private donors, and sponsorship partners. But they’ll also look for community donations for the Name-a-Seat campaign and preservation by-the-foot of the neon blade sign and marquee. Before the grand reopening, the theater hopes to operate a temporary drive-in theater in the large parking lot during renovations.

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