Short answer: "High income" is defined in several ways, depending on context (tax, cost of living, or standard-of-living benchmarks). Here are the main, commonly used definitions and benchmarks. Definitions and benchmarks
- Global income standards (World Bank): High-income economies are those with gross national income per capita above a threshold (adjusted yearly). In 2024 that threshold is around $13,935 per person in GNI per capita, but the exact cutoff shifts with inflation and methodology. This is a country-level classification, not an individual's income level [world bank definitions].
- U.S. tax/earnings benchmarks: In the United States, top income thresholds for “high income” are often discussed in the context of the top 1%, top 5%, or top 10% of earners:
- Top 10% of households typically require AGI around or above roughly $170,000 (varies by year and locality) to be in the top decile [Investopedia analysis based on tax-year data].
- Top 5% often corresponds to AGIs around $250,000–$335,000, depending on year and data source [Investopedia].
- Top 1% generally requires AGI well over $600,000 to well over $1,000,000 in recent years, with state-by-state variation (some high-cost states push the threshold above $1 million) [Investopedia].
- “HENRY” concept (marketing/household finance): High Earners, Not Rich Yet refers to households earning roughly $250,000 to $500,000 annually who have high income but limited wealth accumulation and liquidity, often a target segment in financial services [Investopedia].
Notes and caveats
- Definitions vary by country, time period, and whether you measure income before or after taxes, include capital gains, or adjust for household size. For individuals, disposable income after taxes and transfers can differ significantly from gross income.
- “High income” is not the same as “high net worth.” Someone can have high current income but relatively low net worth if debt is high or savings/investments are small.
- When comparing internationally, per-capita income thresholds (World Bank) are less about personal income and more about average national wealth, which can mislead if applied to individuals.
If you’d like, tell me your country or the context (tax, wealth planning, or market research) and I can tailor a precise threshold and sources for that scenario.
