What Income Is Considered Rich in Georgia?

The concept of being “rich” in Georgia is multifaceted, extending beyond a simple income figure. It encompasses various financial metrics, including annual earnings, accumulated wealth, and the significant impact of regional cost of living variations.

Income Thresholds in Georgia

Income serves as a primary indicator when evaluating financial standing. In Georgia, the median household income was approximately $74,664 as of 2023. This figure represents the midpoint where half of all households earn more and half earn less.

To be considered among the top 1% of income earners in Georgia, a household needs an annual income of at least $700,544 (adjusted to June 2024 dollars). The income floor for the top 5% of earners stands at $266,292 annually. The top 10% of earners had incomes starting around $234,209 (based on 2021 data). These income statistics are derived from official sources and adjusted for inflation.

Net Worth Considerations for Wealth Definition

While income reflects annual earnings, net worth offers a more comprehensive measure of an individual’s overall financial health and wealth accumulation. Net worth is calculated as the total value of all assets owned minus all outstanding liabilities. Assets can include cash, investments, retirement accounts, real estate, and valuable personal property, while liabilities encompass debts such as mortgages, credit card balances, and loans.

The importance of net worth lies in its ability to show accumulated wealth, which is distinct from the flow of annual income. An individual with a high income might not have a high net worth if their spending and liabilities are substantial. Conversely, someone with a modest income but diligent savings can build significant net worth.

Financial institutions often define specific tiers for high net worth individuals (HNWIs). Generally, an individual is considered an HNWI if they possess $1 million or more in liquid assets, excluding their primary residence. This benchmark is commonly used for specialized financial services and investment opportunities.

A very-high-net-worth individual (VHNWI) typically holds liquid assets between $5 million and $30 million, and an ultra-high-net-worth individual (UHNWI) possesses over $30 million in liquid assets. These definitions emphasize investable assets rather than illiquid holdings like personal residences, as liquid assets provide greater financial flexibility.

Regional Cost of Living and Wealth

The purchasing power of a given income or net worth in Georgia is heavily influenced by the regional cost of living within the state. Georgia exhibits considerable diversity in expenses, with metropolitan areas generally being more expensive than suburban or rural regions. This means that the same income can afford a vastly different lifestyle depending on where one resides.

For instance, the Atlanta metropolitan area typically presents a higher cost of living compared to the state average. The average monthly rent in Atlanta can range from around $1,600 to $1,800, and median home prices exceed $360,000, which is higher than the statewide median property value of approximately $272,900 in 2023.

Conversely, many other areas within Georgia offer a more affordable living experience. Cities outside the major metropolitan hubs often have significantly lower housing costs and overall expenses. For example, some regions can have median home prices substantially below the state average, and average rents are also considerably lower than those found in Atlanta.

Local taxes, particularly property taxes, also contribute to the regional variation in living costs. Property tax rates are set at the county and municipal levels in Georgia, leading to substantial differences across jurisdictions. For example, a median property tax payment in Fulton County, which includes a large portion of Atlanta, can be over $3,600 annually, whereas in a less populous county, it might be less than $600. These variations in housing, utilities, groceries, and local taxation demonstrate that being “rich” is not just about the numbers in a bank account but also about the economic environment in which those numbers are spent.