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All Contents © 2018The Kiplinger Washington Editors
By Dan Burrows, Contributing Writer
| July 19, 2018
It might not make you Daddy Warbucks anymore, but a million dollars still is a pretty exclusive level of wealth.
Only 5.8% of the country, or about 7.2 million households, qualify as actual millionaires. To reach that bar, you must have investable assets of $1 million or more, excluding the value of real estate, employer-sponsored retirement plans and business partnerships.
When imagining where America’s millionaires live, most people probably think of California and New York. But although those states have their fair share of millionaires in terms of raw numbers, they don’t have the highest concentrations of rich households. It turns out there are numerous states with higher percentages of well-off households than New York or California, several of which probably will surprise you. And don't forget that between living costs and taxes, a million dollars goes much further in some states than others.
Here’s a look at the millionaire ratings for all 50 states (and the District of Columbia), based on the percentage of millionaire households in each. Just for good measure, we’re also providing the richest residents of each state, as well as important tax and cost-of-living information.
Estimates of millionaire households provided by Phoenix Marketing International, a firm that tracks the affluent market. Investable assets include education/custodial accounts, individually owned retirement accounts, stocks, options, bonds, mutual funds, managed accounts, hedge funds, structured products, ETFs, cash accounts, annuities and cash value life insurance policies. Data on household incomes and home values are from the U.S. Census Bureau. Living costs are based on the Council for Community and Economic Research's Cost of Living Index. Tax information is as of 2017.
Millionaire households: 45,771
Total households: 1,134,578
Concentration of millionaires: 4.03%
Median income for all households: $40,528 (U.S. median: $55,322)
Median home value: $105,700 (U.S. median: $184,700)
Mississippi might have the lowest concentration of millionaire households per capita in the U.S., but it also has some of the lowest taxes. Indeed, it’s one of Kiplinger’s 10 most tax-friendly states in the U.S., thanks to relatively light property and gas taxes.
Mississippi also has the lowest overall cost of living in the U.S. It’s almost 19% cheaper to live in the Magnolia State vs. the national average, according to the Council for Community and Economic Research. That means a million bucks goes further than it does elsewhere. Just have a look at Tupelo and Hattiesburg, which rank among the cheapest cities in the U.S.
Not that that matters much to Mississippi’s richest citizens, James and Thomas Duff, whose diversified holding company gives them each a net worth of $1.2 billion, according to Forbes.
Millionaire households: 32,082
Total households: 763,797
Concentration of millionaires: 4.20%
Median income for all households: $42,644
Median home value: $107,400
West Virginia has a relatively low concentration of millionaires, but its richest citizen is one of its most prominent. Indeed, Jim Justice II, who made his $1.9 billion fortune in coal mining and agriculture, is the state’s governor.
The Mountain State’s median real estate taxes are among the lowest in the U.S., according to the Tax Foundation. Sales taxes are reasonable, too.
Another plus for West Virginia residents: The cost of living is 9.9% lower than the national average, according to the Council for Community and Economic Research.
Millionaire households: 50,106
Total households: 1,178,438
Concentration of millionaires: 4.25%
Median income for all households: $42,336
Median home value: $114,700
Arkansas might not be bristling with millionaires, but it has some of the lowest living costs in the U.S., which are 15% below the national average. Heck, the Arkansas cities of Jonesboro and Conway are two of the least expensive places to live in the entire country.
When it comes to taxes, Arkansas is more of a mixed bag. Property taxes are low, but sales taxes are the second-highest in the country.
With Walmart (WMT) headquartered in Bentonville, it should come as no surprise that the richest person in Arkansas is a member of the Walton clan. Jim Walton – the youngest son of Sam Walton, who founded the world’s largest retailer – has a net worth of $40.3 billion.
Millionaire households: 79,205
Total households: 1,768,852
Concentration of millionaires: 4.48%
Median income for all households: $44,811
Median home value: $126,100
Kentucky has fewer than 80,000 millionaire households. But then, with a cost of living 12.3% below the national average, paychecks tend to go further. Groceries run about 10% below the U.S. average, while housing is roughly a fifth less expensive.
None of this presumably matters much to B. Wayne Hughes. With a net worth of $2.7 billion, the founder and chairman of Public Storage (PSA) is the Bluegrass State’s wealthiest individual.
The tax situation for all Kentucky residents is mixed. Sales taxes are modest and the property tax burden is light. However, effective income tax rates can be high even for relatively low earners.
Millionaire households: 88,880
Total households: 1,928,669
Concentration of millionaires: 4.61%
Median income for all households: $44,758
Median home value: $128,500
Alabama is another state where you don’t need a million bucks to live well. Although only 4.61% of its 1.9 million households hit the millionaire threshold, some of the lowest housing costs in the country help spread the wealth. Overall, the cost of living in the Yellowhammer State is 13.4% below the national average.
It also helps that Alabama is one of the more tax-friendly states. Property taxes are the second-lowest in the country, and the state allows you to deduct your federal income taxes, making it just one of a handful of states with this break.
Alabama’s wealthiest millionaire is Jimmy Rane. The founder and CEO of Great Southern Wood Preserving, which makes treated lumber products, has a net worth of $950 million, Forbes estimates.
Millionaire households: 122,585
Total households: 2,625,681
Concentration of millionaires: 4.67%
Median income for all households: $46,574
Median home value: $146,000
Tennessee is known for country music, BBQ and bourbon more than an abundance of millionaires, but the state should get more recognition for its affordability. Indeed, Memphis and Knoxville are two of the least expensive cities in the U.S., and more broadly, the state’s cost of living is 13.2% below the national average.
Tennesseans also tend to keep more of their hard-earned dollars. The Volunteer State has no broad-based income tax and is phasing out its tax on stock dividends and interest income.
With a fortune estimated at $9.7 billion, Thomas Frist Jr., co-founder of the company now known as HCA Healthcare (HCA), is Tennessee’s wealthiest resident.
Millionaire households: 30,110
Total households: 625,834
Concentration of millionaires: 4.81%
Median income for all households: $49,174
Median home value: $167,900
The vast expanse of the Gem State claims only 625,834 households, of which a bit more than 30,000 can be considered millionaires. A high concentration of them live in the part of the greater Jackson, Wyoming area that spills into Idaho.
Happily, for rich and not-so-rich alike, Idaho’s overall cost of living is 11.7% below the national average.
Somewhat less upbeat is Idaho’s tax picture, which is mixed. Although property taxes are low, sales tax is modest and the state has no inheritance tax or estate tax, its effective income tax rate is higher than even many Northeastern states.
Frank VanderSloot – founder of Melaleuca, a multi-level marketing company – is Idaho’s richest resident, with an estimated net worth of $3.4 billion, according to Forbes.
Millionaire households: 94,675
Total households: 1,960,255
Concentration of millionaires: 4.83%
Median income for all households: $46,898
Median home value: $143,600
From Hilton Head Island to the Midlands region to the Blue Ridge Mountains, South Carolina has something for everyone – but you don’t have to be a millionaire to enjoy its many pleasures. Relatively low prices for housing and transportation help keep the Palmetto State’s cost of living under control. According to the Council for Economic Research, South Carolina is 7.1% cheaper than the national average.
Although South Carolina boasts the sixth-lowest property taxes in the country, many taxpayers find themselves in the highest income bracket. That’s because the top 7% rate kicks in at just $14,600 of income.
With a net worth of $2.5 billion, Anita Zucker, CEO of chemical company InterTech Group, is South Carolina’s wealthiest person.
Millionaire households: 88,371
Total households: 1,818,504
Concentration of millionaires: 4.86%
Median income for all households: $45,652
Median home value: $148,300
Agriculture, the petroleum industry, shipping and tourism are staples of the economy of Louisiana, helping to create almost 90,000 millionaire households.
The state’s richest resident, however, came into her fortune by way of car dealerships and banks. Gayle Benson, widow of Tom Benson, is worth an estimated $2.7 billion. She’s best known as the owner of the NFL’s New Orleans Saints and the New Orleans Pelicans of the NBA.
Folks who call the Pelican State home enjoy a cost of living that 10.2% below the national average. They also benefit from the third-lowest property taxes in the U.S., Sales taxes, however, are relatively high.
Millionaire households: 196,094
Total households: 4,019,126
Concentration of millionaires: 4.88%
Median income for all households: $48,256
Median home value: $157,100
North Carolina has a lot going for it whether you’re a millionaire or not. It’s 11.7% less expensive to live in the Tar Heel State than the national average, and Durham is one of the happiest places to retire in the U.S., according to the according to the Gallup-Sharecare Well-Being Index.
Taxes are another matter. The average combined sales tax rate is 6.9% and in 2016 the state made a wide range of services, such as cable setup, clothing alterations and ammunition reloading, taxable.
James Goodnight, who co-founded privately held software developer SAS Institute, is the Tar Heel State’s wealthiest person. Forbes puts his net worth at $9.9 billion.
Millionaire households: 40,031
Total households: 810,609
Concentration of millionaires: 4.94%
Median income for all households: $45,674
Median home value: $161,600
Los Alamos, New Mexico, sounds like an unlikely place to find a lot of millionaires, but at 11.7%, it actually has the highest concentration of millionaire households of any small town in the U.S. That said, oil tycoon Mack Chase, New Mexico’s top millionaire with a fortune of $700 million, lives almost 300 miles south in Artesia.
Outside of Los Alamos, the state has a more typical concentration of affluence, with fewer than one in 20 households claiming investable assets of $1 million or more. That helps keep a lid on living costs, which are 7.2% below the U.S. average.
Unfortunately for residents of all means, the Land of Enchantment isn’t particularly tax-friendly – or a friendly state for retirement. Social Security benefits are subject to tax by the state, as are retirement account distributions and pension payouts.
Millionaire households: 21,953
Total households: 441,222
Concentration of millionaires: 4.98%
Median income for all households: $48,380
Median home value: $199,700
A good deal of Montana’s wealth stems from its abundance of natural resources. Indeed, copper mining partly helped make Dennis Washington, Montana’s richest citizen, amass a fortune worth $5.9 billion. And nearly 5%, or almost 22,000 households, can claim millionaire status.
The good news for citizens across the income spectrum is that the Treasure State has no general state sales tax. The bad news is that Montana taxes virtually all forms of retirement income, including Social Security. Whether you’re still working or a retiree, Big Sky Country isn’t a tax-friendly place to live.
A dollar does tend to go father there, however. Montana’s cost of living is 7.1% lower than the national average.
Millionaire households: 76,819
Total households: 1,543,599
Median income for all households: $48,038
Median home value: $121,300
You don’t need to be a millionaire to live well in the Sooner State. Not only does Oklahoma offer a cost of living that’s more than 13% below the national average, but its largest city offers remarkably affordable prices for its size.
Oklahoma City, a metro area with 1.4 million people, offers a lot of big-city attractions, from a philharmonic orchestra to the National Softball Hall of Fame and Museum to the NBA’s Oklahoma City Thunder. And yet it remains one of the cheapest large U.S. cities in which to live.
The energy industry is a cornerstone of Oklahoma’s wealth. After all, oil and gas helped its richest citizen, Harold Hamm, build a net worth of $19.5 billion. So it should come as no surprise that fuel taxes are low.
Less appealing? An income tax schedule that puts many people into the highest bracket.
Millionaire households: 128,600
Total households: 2,575,466
Concentration of millionaires: 4.99%
Median income for all households: $50,433
Median home value: $126,500
A million dollars ain’t what it used to be, but it sure goes far in some parts of Indiana. Richmond, Ind., where the cost of living runs 21% below the U.S. average, happens to be the cheapest small town in America. The cost of living in Indiana as a whole is 12.3% below the national average.
Medical device billionaire Carl Cook is Indiana’s wealthiest Hoosier, with a net worth of $8.2 billion. That puts him in another dimension from the rest of Indiana’s 128,600 millionaire households.
And although living costs are low, Indiana isn’t a great state for retirees. Household income is well-below average and the tax situation is disadvantageous. Most retirement income other than Social Security benefits is taxable at ordinary rates.
Millionaire households: 122,323
Total households: 2,439,229
Concentration of millionaires: 5.01%
Median income for all households: $49,593
Median home value: $141,200
More than 5% of Missouri’s households have at least $1 million in investable assets, but there’s nothing elite about that level when it comes to paying taxes. That’s because the Show Me State essentially lumps millionaires and non-millionaires together. Although Missouri has 10 income-tax brackets, all you have to make is $9,000 to reach the top rate of 6%.
Helpfully, the cost of living in Missouri is 14.3% lower than the national average. Housing is particularly affordable, running 27% below the rest of the U.S. In a notable downside for both retirees of all means: Missouri ranks 42nd in the nation for senior health.
At the very top of Missouri’s rich list stands Pauline MacMillan Keinath, believed to be the largest shareholder of privately held food company Cargill. Missouri’s wealthiest person has an estimated net worth of $7.2 billion.
Millionaire households: 17,772
Total households: 349,397
Concentration of millionaires: 5.09%
Median income for all households: $52,078
Median home value: $146,700
South Dakota is better known for Mount Rushmore, agriculture and the great outdoors than millionaires, but more than 1 in 20 households have at least $1 million in investable assets. It also happens to be a great place to retire.
Affordability is the main factor. The cost of living is 9.4% below the national average. It’s also one of the most tax-friendly states. And since South Dakota ranks third in the U.S. for fiscal soundness, according to a recent report from George Mason University’s Mercatus Center, you can have high confidence that it can keep up with short-term expenses and long-term financial obligations.
The richest South Dakotan is T. Denny Sanford, who made his $2.5 billion fortune in the banking business.
Millionaire households: 56,452
Total households: 1,096,916
Concentration of millionaires: 5.15%
Median income for all households: $53,094
Median home value: $191,600
If you need proof that the house always wins, just take a look at Nevada. Median income for all households is slightly below the U.S. average. Meanwhile, casino magnate Sheldon Adelson – the state’s richest person – has a net worth of $42.8 billion.
But you don’t have to go to Las Vegas to rub elbows with the Silver State’s millionaires. Gardnerville Ranchos and Elko, Nevada, are among the top 20 small towns with the highest concentration of millionaires in the U.S.
The cost of living in Nevada is essentially on par with the national average, but residents catch a break on taxes. As a no-income-tax haven, Nevada is one of Kiplinger’s top 10 most tax-friendly states.
Millionaire households: 29,301
Total households: 565,293
Concentration of millionaires: 5.18%
Median income for all households: $50,826
Median home value: $176,000
Although author Stephen King may be Maine’s most famous millionaire, he’s not its richest. That honor goes to investor and philanthropist Susan Alfond, who has an estimated net worth of $1.6 billion. Alfond’s father founded Dexter Shoe Company, which he later sold to Warren Buffett’s Berkshire Hathaway (BRK.B).
There are fewer than 30,000 millionaire households in Maine – a state in which rich and poor alike face relatively high living costs and taxes. Expenses in the Pine Tree State run 9.5% above the national average. Residents pay more for groceries, housing and utilities, in particular.
Maine also is one of the least tax-friendly states. Although it has been working to lower its income taxes, Maine’s lowest rate still is higher than some other states’ maximum rate.
Millionaire households: 243,118
Total households: 4,685,647
Concentration of millionaires: 5.19%
Median income for all households: $50,674
Median home value: $131,900
NBA superstar LeBron James might have forsaken the Cleveland Cavaliers for the Los Angeles Lakers, but the great state of Ohio has plenty of other millionaires to fill his sizable shoes. Nearly a quarter of a million households – out of 4.7 million total – have at least $1 million in investable assets in the Buckeye State.
Although Ohio can’t compete with L.A. for glamour, LBJ may come to miss Ohio’s affordability and comparatively lighter tax bite. The cost of living in Ohio is 14% below the national average. (Los Angeles happens to be the ninth most expensive city in the U.S.)
And although Ohio isn’t exactly tax-friendly, no state goes after big earners quite like the Golden State.
For the record, with a fortune of $5.4 billion, L Brands (LB) founder, chairman and CEO Les Wexner is Ohio’s richest resident.
Millionaire households: 200,395
Total households: 3,854,460
Concentration of millionaires: 5.20%
Median income for all households: $51,037
Median home value: $152,400
With a cost of living 11.1% lower than the national average, a million dollars goes a bit further in the Peach State than elsewhere.
But taxes do take their bite. Although Georgia has modest property taxes, the state’s income tax is nearly a flat 6%, even for low-income singles. Sales taxes lean high, and in some areas, groceries will be taxed as well.
With a fortune of $9 billion, Jim Kennedy, chairman of privately held Cox Enterprises, is Georgia’s wealthiest resident.
Millionaire households: 427,824
Total households: 8,173,428
Concentration of millionaires: 5.23%
Median income for all households: $48,900
Median home value: $166,800
Florida’s popularity as a retirement destination helps boost its concentration of millionaires. Indeed, an hour’s drive north of Walt Disney World, you’ll find The Villages, a sprawling retirement haven with one of the highest number of millionaires per capita in the country.
The Sunshine State is well-known for its absence of a state income tax, which helps put it into Kiplinger’s top 10 most tax-friendly states. The cost of living is 3.6% below the national average.
With a net worth of $25.7 billion, Thomas Peterffy, founder, chairman and CEO of Interactive Brokers Group (IBKR), is Florida’s richest citizen.
Millionaire households: 137,359
Total households: 2,595,635
Concentration of millionaires: 5.29%
Median income for all households: $51,340
Median home value: $176,900
Like Florida, Arizona is a retirement haven and one of the tax-friendliest states in the U.S. for millionaires and non-millionaires alike. While the Grand Canyon State does have an income tax, the rates are notably low.
It’s not quite as inexpensive as Florida, however. The cost of living in Arizona is equal to the national average.
With a net worth of $3 billion, Mark Shoen, who owns roughly 20% of U-Haul parent company Amerco (UHAL), is Arizona’s wealthiest person.
Millionaire households: 210,957
Total households: 3,939,976
Concentration of millionaires: 5.35%
Median income for all households: $50,803
Median home value: $127,800
Michigan doesn’t have the highest concentration of millionaires in the country, but it is among the top states for billionaires. Quicken Loans founder Daniel Gilbert, worth $6.3 billion, is the wealthiest of “the Mitten’s” 11 billionaires, according to Forbes.
At the other end of the spectrum, Michigan is home to one of the least expensive places to live in the U.S. The cost of living in Kalamazoo is 20.5% below the U.S. average. Overall, Michigan is 14.1% cheaper than the national average.
Michigan’s tax situation is mixed. It’s one of just a handful of U.S. states with a flat tax – the rate is a modest 4.25%. But property taxes, particularly in Detroit, are steep.
Millionaire households: 127,260
Total households: 2,354,510
Concentration of millionaires: 5.40%
Median income for all households: $54,610
Median home value: $167,000
Bucolic Wisconsin’s 127,260 millionaire households enjoy a relatively affordable cost of living, but taxes in the Badger State can be a bit of a burden.
Wisconsin recently lowered income tax rates and reduced the number of brackets. But many residents of the Badger State will find themselves in the 6.27% bracket, which kicks in on income above only $22,230 for singles and $29,640 for joint filers. At the same time, property taxes are high. On the other hand, it’s 7.3% cheaper to live in Wisconsin than the country as a whole.
John Menard Jr., who founded a chain of home-improvement stores that bear his name, is the state’s richest resident, with a net worth of $10.5 billion.
Millionaire households: 62,168
Total households: 1,144,287
Concentration of millionaires: 5.43%
Median income for all households: $53,571
Median home value: $135,300
Kansas is known more for affordable living than it is for putting on the ritz. Indeed, Salina and Pittsburg, Kansas, are two of the cheapest small towns in America. Statewide, the cost of living in Kansas is 11.3% cheaper than the national average.
Offsetting that somewhat is the fact that Kansas is not the friendliest state when it comes to taxes. The state has an average combined sales-tax rate of 8.62%, for example. Sales tax rates apply to groceries as well.
Against that backdrop, the Sunflower State has 62,168 millionaire households out of a total of about 1.1 million households. The wealthiest by far is that of Charles Koch, CEO of Koch Industries, with a fortune of $51.5 billion.
Millionaire households: 41,348
Total households: 760,510
Concentration of millionaires: 5.44%
Median income for all households: $54,384
Median home value: $137,300
Warren Buffett, chairman and CEO of Berkshire Hathaway, is Nebraska’s richest – and most famous – resident. Duh. His net worth of $65 billion makes him one of the wealthiest people in the world. While Uncle Warren is clearly in a league if his own, the Cornhusker State does have 41,347 other households with at least a million bucks.
The cost of living in Nebraska is 10% lower than the national average, according to Council for Community and Economic Research.
When it comes to paying taxes, Nebraska is ranked as “not tax-friendly” by Kiplinger. Property taxes are the seventh-highest in the country, while the average combined sales tax rate comes to 6.89%, according to the Tax Foundation.
Millionaire households: 89,383
Total households: 1,639,493
Concentration of millionaires: 5.45%
Median income for all households: $53,270
Median home value: $247,200
Oregon lays claims to two billionaires and more than 89,000 millionaire households. Nike (NKE) founder Phil Knight is Oregon’s richest person with a net worth of $30.7 billion. Columbia Sportswear (COLM) CEO Timothy Boyle has a net worth of $2.2 billion.
The Beaver State’s cost of living is 4.1% higher than the U.S. average. That’s partly due to a median home value of more than $247,000, which is well above the national average.
Oregonians also face the country’s highest income tax bracket. The 9.9% rate is applied to taxable income over $125,000 ($250,000 for married couples filing jointly) — and the lowest bracket is already 5%. Property taxes are on the high side, too.
Millionaire households: 71,212
Total households: 1,270,566
Concentration of millionaires: 5.60%
Median income for all households: $54,570
Median home value: $132,800
The farming and food-processing powerhouse of a state has a relatively low cost of living but it can be tough on residents wallets when it comes to paying taxes.
Iowa has a top tax bracket of almost 9% and brings it to bear on a relatively low level of taxable income, giving the Hawkeye State an income tax bite that exceeds many East Coast states. Easing the sting a bit is a cost-of-living index that’s 11.9% lower than the U.S. average.
Harry Stine, founder of seed genetics company Stine Seed, is the state’s richest person, with a fortune estimated at $3.2 billion, according to Forbes.
Millionaire households: 566,578
Total households: 10,005,417
Concentration of millionaires: 5.66%
Median income for all households: $54,727
Median home value: $142,700
Everything is bigger in Texas. No, it doesn’t have the highest concentration of millionaires, but in terms of raw numbers, only California has more than the Lone Star State’s 566,578 millionaire households.
Heck, Texas is so big it not only has two of the smallest towns with the most millionaires in the U.S. – Andrews and Fredericksburg – but it’s also home to four of the 10 cheapest U.S. in which to live. (Those would be Brownsville, Wichita Falls, Harlingen and McAllen.) On average, the cost of living in Texas is 8.7% lower than the U.S. average.
Texas is a place of extremes when it comes to taxes, too. There’s no income tax at all, but sales taxes run high, as do property taxes.
Walmart heiress Alice Walton, with a net worth of $40 billion, is the richest Texan – and the richest woman in the world.
Millionaire households: 294,002
Total households: 5,099,166
Concentration of millionaires: 5.77%
Median income for all households: $54,895
Median home value: $167,700
Almost 5.8% of Pennsylvania’s 5 million-plus households have investable assets of $1 million or more, excluding the value of real estate, employer-sponsored retirement plans and business partnerships. That puts the state’s concentration of millionaires on par with the national average, even as the cost of living in the Keystone State is 1.1% lower than the U.S. average.
The Keystone State has a flat income tax rate of 3.07%, but property taxes can be steep in some communities. There’s a 6% sales tax, but food, clothing, textbooks, heating fuels, and prescription and nonprescription drugs are exempt.
Victoria Mars, heir to candy and pet food company Mars Inc., is the state’s wealthiest person with net worth of $6 billion.
Millionaire households: 15,363
Total households: 261,095
Concentration of millionaires: 5.88%
Median income for all households: $56,104
Median home value: $218,900
Tiny Vermont has just 15,363 millionaire households, the wealthiest of which is headed by John Abele. The co-founder of medical device company Boston Scientific (BSX) is worth $630 million.
Vermont is one of the tougher states when it comes to taxing millionaires. Although effective tax rates are lower than those imposed in nearby New York, it’s a pricey place to live if you’re wealthy — among other policies, Vermont limits deductions for high-incomers. Also, Vermont’s property taxes are among the 10 highest in the U.S.
Vermont is a comparatively expensive state in which to live, too. The Green Mountain State’s costs of living index is 12.8% higher than the national average.
Millionaire households: 19,662
Total households: 327,536
Concentration of millionaires: 6.0%
Median income for all households: $59,114
Median home value: $164,000
The explosion in shale oil drilling has minted many a millionaire in North Dakota over the past decade. Indeed, small towns such as Dickinson and Williston, located in the oil-rich Bakken Formation, have some of the highest concentrations of millionaires in the U.S. With oil prices at multiyear highs, North Dakota expects to set a new record for monthly oil production in 2018.
North Dakota is one of the nation’s tax-friendliest states. Income taxes barely take a bite, and property taxes are middle-of-the-road. To top it off, the cost of living in the Peace Garden State is 2.9% lower than the national average.
Shale oil is a relatively new source of wealth, however. North Dakota’s richest millionaire is Gary Tharaldson. He made his $900 million fortune in the hotel industry.
Millionaire households: 59,390
Total households: 978,826
Concentration of millionaires: 6.07%
Median income for all households: $62,518
Median home value: $224,600
More than 6% of Utah’s households have more than $1 million in investable assets, a figure that’s partly due to Summit Park, a small town with one of the highest concentrations of millionaires in the country. World-class ski resorts and luxury shopping are the main draw.
As for taxes, millionaires could do worse. The Beehive State moved to a 5% flat income tax system in 2008. Property taxes are low and sales taxes are average.
Gail Miller – owner and chairwoman of the Larry H. Miller Management Corporation, and owner of the NBA’s Utah Jazz – is the state’s wealthiest person with a fortune estimated at $1.4 billion.
Millionaire households: 300,142
Total households: 4,886,159
Concentration of millionaires: 6.14%
Median income for all households: $59,196
Median home value: $174,800
Illinois has a higher concentration of millionaires than the national average, but then, a million bucks doesn’t go as far in the Prairie State as it does in much of the rest of the country.
The cost of living index for Illinois is 4% above the U.S. average, and taxes can take quite a toll. Indeed, Illinois is one of Kiplinger’s top 10 least tax-friendly states. Property taxes in Illinois are the second-highest in the nation and combined sales taxes can be as high as 10%.
Topping the state’s list of more than 300,000 millionaire households is hedge-fund manager Ken Griffin. He’s worth $9 billion, according to Forbes.
Millionaire households: 465,479
Total households: 7,568,120
Concentration of millionaires: 6.15%
Median income for all households: $60,741
Median home value: $286,300
New York State has the third most millionaire households in raw numbers after California and Texas. They’re disproportionately located in the greater New York City area, however, where a million bucks doesn’t go that far.
Manhattan is the most expensive place to live in the country, or 138.6% above the U.S. average. For New York State as a whole, the cost of living is 35.9% higher than the national average.
Taxes can be brutal too. The Empire State is among the least-friendly in the nation. Income, property and sales tax are all high, and New York’s cigarette tax is the highest in the country.
David Koch, younger brother of Koch Industries CEO Charles Koch, tops the New York State rich list at $51.5 billion.
Millionaire households: 26,032
Total households: 418,815
Concentration of millionaires: 6.22%
Median income for all households: $58,387
Median home value: $238,200
When people think about Rhode Island and millionaires, Newport and its grand 19th century mansions naturally come to mind. Today, however, Rhode Island’s wealthiest individual lives in the state capital. That would be Jonathan Nelson, CEO of private equity firm Providence Equity Partners, with a net worth of $1.8 billion.
With more than 26,000 millionaire households out of almost 419,000 total, Rhode Island has an above-average concentration of millionaires. Unhappily, taxes and expenses in the Ocean State are on the high side too.
The cost of living in Rhode Island is 12.5% higher than the national average. As for taxes, the property tax on the state’s median home value is the 10th-highest in the U.S. Sales taxes are also on the high side.
Millionaire households: 14,989
Total households: 240,378
Concentration of millionaires: 6.24%
Median income for all households: $59,143
Median home value: $199,900
Wyoming might have the smallest population of any state, but it has one of the higher concentration of millionaires, thanks to abundant natural resources and recreational activities.
Wyoming accounts for about 40% if the nation’s coal production, and the vast majority of the state’s output comes from the Gillette area, which has a high concentration of millionaires as a result. Wyoming’s famed Jackson Hole valley, with three major ski resorts and an abundance of other year-round recreational activities, also is a mecca for millionaires.
Thanks to abundant revenue that the state collects from oil and mineral rights, Wyoming millionaires shoulder one of the lowest tax burdens in the U.S.
John Mars, heir to candy and pet food company Mars Inc., is Wyoming’s richest resident with a fortune of $23.8 billion.
Millionaire households: 143,564
Total households: 2,217,977
Concentration of millionaires: 6.47%
Median income for all households: $62,520
Median home value: $264,600
Colorado has a relatively high concentration of millionaire households partly because it’s an outdoor recreational paradise. The small town of Edwards, for example, is bristling with millionaires thanks to nearby word-class ski resorts like Vail and Beaver Creek.
Both median income and home value are well above national averages in Colorado, as is the cost of living, albeit only by 0.8%. Although property taxes are quite low, sales taxes can take a bite.
With a net worth of $12.7 billion, Philip Anschutz – who has his hands in numerous businesses, including energy, real estate and sports – is the Centennial State’s richest resident.
Millionaire households: 186,396
Total households: 2,865,392
Concentration of millionaires: 6.51%
Median income for all households: $62,848
Median home value: $269,300
Washington State is home to the two wealthiest people on the planet. Amazon.com (AMZN) CEO Jeff Bezos tops the rich list with a net worth of $132 billion. Bill Gates, founder of Microsoft (MSFT), has a fortune of $90 billion, according to Forbes.
The rest of the state’s millionaire households live closer to Earth. Seattle, one of the nation’s fastest growing cities, is also one of the most expensive. Tiny Oak Harbor, Washington, has one of the highest concentrations of millionaires of any small town in America.
Washington is one of seven states with no broad-based personal income tax, but the cost of living is 7.9% higher than the national average.
Millionaire households: 144,944
Total households: 2,206,236
Concentration of millionaires: 6.57%
Median income for all households: $63,217
Median home value: $191,500
Minnesota is loaded with giant companies. UnitedHealth Group (UNH), 3M (MMM), Target (TGT) and General Mills (GIS) are just a few of the major firms headquartered there. They help drive an economy that supports nearly 145,000 millionaire households.
Although Minnesota affords residents a cost of living that’s 4.3% below the national average, it hits hard with income tax. The North Star State’s lowest income tax rate is 5.35%. Property taxes are on the high side.
With a net worth of $2.8 billion, Glen Taylor, founder and chairman of privately held Taylor Corp., is the state’s wealthiest resident.
Millionaire households: 20,534
Total households: 312,546
Median income for all households: $72,935
Median home value: $506,100
The District of Columbia is a magnet for the highly educated seeking high-powered jobs. Naturally, many of those ambitious folks are highly paid, giving D.C. a high concentration of millionaires.
On the downside, you need a hefty paycheck to live in D.C. Rents and mortgages are more than double the national average, making the nation’s capital one of the most expensive cities in the U.S.
Furthermore, D.C. is decidedly unfriendly when it comes to taxes. Although property and sales taxes are unexceptional, the nation’s capital takes a huge bite of income.
Amazon.com chief Jeff Bezos paid $23 million for a 27,000-square-foot home in Washington, D.C., in 2017.
Millionaire households: 885,225
Total households: 13,384,483
Concentration of millionaires: 6.61%
Median income for all households: $63,783
Median home value: $409,300
The Golden State is home to the most millionaires in the nation, topping 885,000 households, and claims four of the top 10 metro areas with the highest concentrations of millionaires.
The greater Napa, San Francisco, San Jose and Oxnard metro areas are loaded with wealth. In the San Francisco-Oakland-Hayward metro area, for example, almost 25,000 households have more than $5 million in investable assets.
It almost goes without saying that California is a pricey place to live. The cost of living is a third higher than the U.S. average. Taxes, especially on big earners, are aggressive. Sales and fuel taxes are high too.
With $74 billion, Facebook (FB) founder and CEO Mark Zuckerberg is the richest Californian.
Millionaire households: 24,212
Total households: 365,666
Concentration of millionaires: 6.62%
Median income for all households: $61,017
Median home value: $233,100
Well-paid jobs in the finance and insurance industries, as well as the presence of major companies like DowDuPont (DWDP) and AstraZeneca (AZN), help fuel a high concentration of millionaire households in Delaware. But the tiny state has no billionaires.
Gore-Tex heirs Robert Gore and Elizabeth Snyder are the state’s wealthiest people. Each has a net worth of $750 million.
Delaware’s cost of living is just 0.6% below the U.S. average. The First State has no sales tax and low property taxes, but income taxes hit 6.6% on taxable income above $60,000.
Millionaire households: 226,167
Total households: 3,242,493
Concentration of millionaires: 6.98%
Median income for all households: $66,149
Median home value: $248,400
Virginia’s high concentration of millionaires is largely driven by Washington, D.C., suburbs such Arlington and McLean. As noted above, the greater D.C. area is a magnet for the highly educated seeking high-powered jobs.
Although Virginia’s D.C. suburbs are among the more expensive places to live in the U.S., the state as a whole is comparatively affordable. Virginia’s cost of living index is 1.7% lower than the national average.
Income taxes are middle-of-the-road when compared with other states, while property taxes are relatively low.
Mars Inc. heiress Jacqueline Mars, worth $23.6 billion, is the wealthiest Virginian.
Millionaire households: 39,209
Total households: 532,376
Concentration of millionaires: 7.36%
Median income for all households: $68,485
Median home value: $239,700
New Hampshire’s high concentration of millionaires hinges on Concord and Laconia. In the former case, the state capital is home to a horde of state, county, local and federal agencies – and the law firms and professional agencies that support them. Laconia and the state’s famed Lakes Region benefits from its popularity as tourism hub.
Although N.H. is a relatively tax-friendly state, the high concentration of millionaires contributes to relatively high living costs. Expenses in the Granite State run 14.7% above the U.S. average.
A net worth of $1.1 billion makes heiress Andrea Reimann-Ciardelli New Hampshire’s richest resident.
Millionaire households: 198,750
Total households: 2,682,402
Concentration of millionaires: 7.41%
Median income for all households: $70,954
Median home value: $341,000
From the greater Boston area to the tip of Cape Cod, Massachusetts has more than its fair share of millionaire households. With its unparalleled collection of universities, hospitals, historical sites, and tech and biotech employers, Boston is a center of wealth, as well as one of the priciest cities in the U.S. Barnstable, Massachusetts and Martha’s Vineyard have some of the highest concentrations of millionaires in the country.
No wonder Massachusetts has a cost of living 20.7% higher than the national average.
However, while the Bay State gets dubbed “Taxachusetts,” that’s not really fair. Taxes are decidedly average.
Fidelity Investments CEO Abigail Johnson’s $16.9 billion fortune makes her the richest person in Massachusetts.
Millionaire households: 20,444
Total households: 272,496
Concentration of millionaires: 7.50%
Median income for all households: $74,444
Median home value: $257,100
Oil wealth is what gives Alaska its high percentage of millionaires. Indeed, Juneau, the state capital, has the third-highest concentration of millionaire households in the country.
The downside is that everything costs more in Alaska because it’s so remote. Groceries alone cost 50% more in Juneau. Overall, the cost of living in the Last Frontier is 18.5% higher than the national average.
On the other hand, Alaska is one of the most tax-friendly states in the country. State income tax doesn’t exist and the government actually pays residents an annual stipend.
With a combined fortune of $310 million, real estate developer Leonard Hyde and partner Jonathan Rubini top Alaska’s rich list.
Millionaire households: 36,903
Total households: 487,708
Concentration of millionaires: 7.57%
Median income for all households: $71,977
Median home value: $538,400
It should come as no surprise that a tropical paradise would be a magnet for millionaires. Kapaa, on Hawaii’s fourth-largest island of Kauai, and Honolulu have some of the highest concentration of millionaire households in the U.S.
But paradise doesn’t come cheap. Blame Hawaii’s remoteness, making pretty much everything more expensive than it would be on the mainland. The cost of living in the Aloha State is 26.9% higher than the national average. Taxes are rough, too. The top tax bracket is an eye-popping 11%.
Ebay (EBAY) founder Pierre Omidyar’s $10.6 billion fortune makes him Hawaii’s richest resident.
Millionaire households: 106,892
Total households: 1,379,979
Concentration of millionaires: 7.75%
Median income for all households: $71,755
Connecticut’s Stamford metro area, which includes Norwalk and Bridgeport, has the highest concentration of millionaires in the U.S. Some are wealthy commuters who make their livings in the Big Apple. Others made their fortunes closer to home. The southwest corner of the state is the base for many hedge funds and prominent public companies.
But it’s expensive to be a millionaire in Connecticut. Real estate taxes are the fourth-highest in the country and the state has not only a gift tax, but a luxury tax. Furthermore, the cost of living in the Nutmeg State is 18.5% greater than the national average.
Ray Dalio, founder of hedge fund Bridgewater Associates, is the state’s wealthiest resident. His net worth is estimated at $17.4 billion.
Millionaire households: 258,988
Total households: 3,294,365
Concentration of millionaires: 7.86%
Median income for all households: $73,702
Median home value: $316,400
Like Connecticut, New Jersey has a high concentration of millionaires largely thanks to its proximity to New York City. But not all of New Jersey’s millionaires are clustered near the Big Apple. Farther south, the state capital of Trenton – and its metro area that includes tony Princeton – has plenty of millionaires, as well.
Also like Connecticut, the Garden State is pricey and taxes are high. N.J.’s cost of living is 13.4% higher than the U.S. average. The states’ property taxes are the highest in the U.S., while the sales tax stands at 7%.
With $5.5 billion, John Overdeck, co-founder of hedge fund Two Sigma Investments, is the richest person in the state.
Millionaire households: 178,003
Total households: 2,263,021
Concentration of millionaires: 7.87%
Median income for all households: $76,067
Median home value: $290,400
Maryland has the highest concentration of millionaire households of any state in the union. As with Virginia, that’s partly thanks to its Washington, D.C., suburbs, but the pull of the nation’s capital can’t take all the credit. The California-Lexington Park metro are also has one of the country’s highest concentration of millionaires. Tiny Easton, Maryland, on the Eastern Shore of Chesapeake Bay, punches well above its weight when it comes to millionaire households, too.
Steep local income taxes make the Old Line State one of Kiplinger’s least tax-friendly states. A cost of living that’s 21.4% higher than the national average in another negative.
Real estate developer Ted Lerner, who owns the Washington Nationals baseball team, is Maryland’s wealthiest person. His fortune is estimated at $5.1 billion, according to Forbes.
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