Where do the richest Americans live? The Internal Revenue Service (IRS) has released facts and figures on the subject. The IRS report that was released this week listed out the states that account for the most multi-millionaires. The report focused on American residents with a minimum net worth of $2 million. The report offers the population of millionaires in a given state as well as their percentage proportion as per the state’s total adult population. Predictably, California tops the list with 329,000 multi-millionaires. That is 1.2 percent of the state’s adult population. In sheer number terms, California is far ahead of other multi-millionaire-rich states like New York (160,000 multi-millionaires) and Florida (155,000 multi-millionaires).
Going by the IRS report, eight of the states with the highest numbers of multi-millionaires are also among the ten most populated states. New Jersey and Virginia, which appear at the sixth and tenth positions respectively are the 11th and 12th most populated states in the country. Thus, high overall population seems to be an indicator of a high number of multi-millionaires. Another important pointer is that the population of multi-millionaires in a given state may be vastly different from their concentration per capita. Interestingly, Wyoming leads the pack in terms of per capita concentration of multi-millionaires. The state boasts of only 6,000 such individuals, but they account for 1.5 percent of the state’s population. Connecticut comes in second on this list, 1.3 percent. New Hampshire, Vermont and California take the third, fourth and fifth spots.
The IRS figures will be very useful luxury brands and wealth management firms. Knowing where your target clientele lives is a huge boon in the business. Maybe the Chinese should come up with a similar report for Chinese millionaires as well. Luxury brands heading to China would be very pleased.
Here are the ten states with the highest population of multi-millionaires:
1. California – 329,000 (or 1.2% of total adult population)
2. New York – 160,000 (or 1.1% of the adult population
3. Florida – 155,000 (or 1.2% of total adult population)
4. Texas – 100,000 (or 0.6% of total adult population)
5. Illinois – 83,000 (or 0.6% total adult population)
6. New Jersey – 71,000 (or 1.1% of total adult population)
7. Pennsylvania – 57,000 (or 0.6% of total adult population)
8. Massachusetts – 51,000 (or 1% of total adult population)
9. Ohio – 50,000 (or 0.6% of total adult population)
10. Virginia – 49,000 (or 0.8% of total adult population)