Personal Finance
Written by Megan Durisin
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If one thing is made clear by the latest Census report on the geographic concentration of high-income households, it's this:
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Wealthy people love living on the water's edge.
The report, which is based on data from the American Community Survey (2007-2011),zeroed in on not only which metro areas are home to the biggest bank accounts, but where these well-heeled residents are the most concentrated. Coastal towns were by far the most popular, including long-time favorites like California and Florida.
With the final ranking in hand, we decided to dig a bit deeper. By breaking down each metro area in the report's top wealthiest metropolitan areas by income tax rates, household income, and home value, we sought to explain not only where the wealthy live, but why.
These are the biggest metro areas with the highest concentration of wealthy residents.
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Tax rates are noted as percentages of income and were compiled from Institute for Taxation and Economic Policy data. Average household income data was provided by the U.S. Census Bureau. Average home price data was compiled from Censusdata and Zillow.
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21. Philadelphia
6.9percent of households are in the top 5 percent of earners nationally.
Average household income: $61,496
State tax rate for wealthiest 1 percent: 4.4 percent (Pennsylvania); 7 percent (New Jersey)
State tax rate for next 4 percent: 6.8 percent (Pennsylvania); 8.8 percent (New Jersey)
Average cost of single-family home:$214,900
Well-known wealthy inhabitants: Mary Alice Torrance Mallone, Brian Roberts
Extra:Philly Mag recently published an exclusive feature called"Confessions of the One Percent." It was billed as achance for the city's richest to anonymouslyspill their secrets about life at the top of the economic food chain.
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20. Honolulu
7 percent of households are in the top 5 percent of earners nationally.
Average household income: $71,263
Hawaii tax rate for wealthiest 1 percent: 8 percent
Hawaii tax rate for next 4 percent: 7.5 percent
Average single-family home cost: $607,600
Well-known wealthy residents:Pierre Omidyar
Extra:Although they aren't residents of The Aloha State, many people on America's rich list have oceanfront vacation homes in Hawaii, including Michael Dell and Charles Schwab.
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19. Seattle
7.1 percent of households are in the top 5 percent of earners nationally.
Average household income: $67,023
Washington tax rate for wealthiest 1 percent: 2.8 percent
Washington tax rate for next 4 percent: 4.7 percent
Average single-family home cost: $295,700
Well-known wealthy inhabitants:Bill Gates, Jeff Bezos
Extra:Washington's tax rates are known for being the friendliest to the wealthy. The state doesn't have a tax on income and has low business taxes as well.
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18. San Diego
7.3 percent of households are in the top 5 percent of earners nationally.
Average household income: $63,857
California tax rate for wealthiest 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average single-family home cost: $385,200
Extra:At least 20 members of the Forbes 400 have connections to the San Diego area, reports the San Diego Union-Tribune. Bill Gates is a member of the region's exclusive Del Mar Country Club, which is owned by the wife of another billionaire, T. Boone Pickens.
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17. Hartford
7.4percent of households are in the top 5 percent of earners nationally.
Average household income: $67,695
Connecticut tax rate for wealthiest 1 percent: 5.5 percent
Connecticut tax rate for next 4 percent: 7.7 percent
Average home cost:$235,800
Extra:Hartford has a long history of being one of America's wealthiest cities, but Connecticut's rich-poor gap has been noted for growing rapidly in recent years.
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16. Santa Barbara
7.4percent of households are in the top 5 percent of earners nationally.
Average household income: $61,896
California tax rate for wealthiest 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average home cost:$639,000
Well-known wealthy inhabitants:Rob Lowe
Extra:Google CEO Eric Schmidt also owns a $20 million estate in Montecito, a haven for celebrity homes.
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15. Los Angeles
7.9percent of households are in the top 5 percent of earners nationally.
Average household income: $60,667
California tax rate for wealthiest 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average home cost:$316,700
Well-known wealthy inhabitants: Steven Spielberg, David Murdock
Extra:California has the most metropolitan areas on the wealthy cities list by far. And Los Angeles made it up to the top 15 with its movie star-laden population.
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14. Midland, TX
7.9percent of households are in the top 5 percent of earners nationally.
Average household income:$57,807
Texas tax rate for wealthiest 1 percent:3.2 percent
Texas tax rate for next 4 percent:4.8 percent
Average home cost:$200,000
Extra:Petroleum-rich Midland has boomed in recent years with a swell in energy prices. Recently, it's unemployment levelhas been noted at an astonishingly low 3 percent.
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13. Baltimore
8percent of households are in the top 5 percent of earners nationally.
Average household income:$67,891
Maryland tax rate for wealthiest 1 percent: 6.4 percent
Maryland tax rate for next 4 percent:8.3 percent
Average home cost:$246,100
Well-known wealthy inhabitants:Stephen Bisciotti
Extra:In the market for millionaire? Towson was rankedNo. 8 best city for the rich and singleby Money magazine.
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12. Naples
8.8percent of households are in the top 5 percent of earners nationally.
Average household income:$56,876
Florida tax rate for wealthiest 1 percent:2.3 percent
Florida tax rate for next 4 percent:4.3 percent
Average home cost: $496,800
Well-known wealthy inhabitants:Shahid Khan, Tom Golisano
Extra:Like Washington, Florida alsodoesn't have an income tax, making it a warm-weather state the wealthy love.
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11. Santa Cruz
9percent of households are in the top 5 percent of earners nationally.
Average household income:$66,030
California tax rate for wealthiest 1 percent:8.8 percent
California tax rate for next 4 percent:8.7 percent
Average home cost: $555,800
Extra: Santa Cruz is also known for another kind of green. Its Pasatiempo Golf Club has been noted as one of the best in the country.
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10. Napa
9.3 percent of households are in the top 5 percent of earners nationally.
Average household income: $68,641
California tax rate for wealthiest 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average home cost:$367,000
Well-known wealthy inhabitants:Francis Ford Coppola
Extra:Besides being one of the richest cities, Napa is also one of the happiest.
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9. Boulder
9.4 percent of households are in the top 5 percent of earners nationally.
Average household income: $66,479
Colorado tax rate for wealthiest 1 percent: 4.6 percent
Colorado tax rate for next 4 percent: 5.8 percent
Average home cost:$358,100
Extra:Boulder also earned a top 20 spot in Money's best places for the rich and single, and it might be because its singles are so fit. The city is ranked No. 1 for people who walk to work and also has a wealth of bike trails.
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8. Boston
9.7 percent of households are in the top 5 percent of earners nationally.
Average household income: $71,878
Massachusetts tax rate for wealthiest 1 percent: 4.9 percent
Massachusetts tax rate for next 4 percent: 7.3 percent
Average home cost: $357,300
Well-known wealthy inhabitants: Jack Welch
Extra:When Boston Magazine compiled its list of the 50 wealthiest Bostonians in 2006, it noted that one in five families living in Beantown were worth at least $1 million and the incomes of the wealthy had swelled twice as fast as the middle class since the '90s.
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7. Oxnard, Calif.
9.7 percent of households are in the top 5 percent of earners nationally.
Average household income: $76,728
California tax rate for wealthiest 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average home cost: $298,800
Extra:Forbes noted this area as the ninth best-paying city in the U.S., with median mid-career salaries at $93,800.
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6. New York City
10percent of households are in the top 5 percent of earners nationally.
Average household income: $65,288
Tax rate for wealthiest 1 percent: 6.9 percent (NY); 7 percent (NJ)
Tax rate for next 4 percent: 11.0 percent (NY); 8.8 percent (NJ)
Average home cost:$393,700
Any well-known wealthy inhabitants: Rupert Murdoch, Michael Bloomberg
Extra:New York City has plenty of wealthy residents, but it's not as friendly toward those in the middle. Manhattanites have to earn at least $80,000 a year to enjoy a middle class lifestyle.
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5. Trenton, NJ
11.6 percent of households are in the top 5 percent of earners nationally.
Average household income: $73,883
New Jersey tax rate for wealthiest 1 percent: 7.0 percent (as % of income)
New Jersey tax rate for next 4 percent: 8.8 percent (as % of income)
Average home cost: $250,700
Extra:Although Trenton earned a No. 5 spot on the list, Bloomberg notes that New Jersey's high tax rates often drive the rich away.
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4. San Francisco
13percent of households are in the top 5 percent of earners nationally.
Average household income: $76,911
California tax rate for wealthiest 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average home cost:$525,300
Well-known wealthy inhabitants:Mark Zuckerberg, Larry Page, Jack Dorsey
Extra:Eighteen members of the Forbes 400 have a residence in the Bay Area, but San Fran's rich residents don't stop there. Ten percent of people living in the city have at least $1 million in the bank, says San Francisco Bay Guardian.
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3. Washington, DC
14percent of households are in the top 5 percent of earners nationally.
Average household income: $88,486
Tax rate for wealthiest 1 percent: 6.3 percent (DC); 4.9 percent (Virginia)
Tax rate for next 4 percent: 7.3 percent (DC); 6.7 percent (Virginia)
Average home cost:$325,300
Well-known wealthy inhabitants:Jacqueline Mars, Connie Chung, Maury Povich
Extra:Although the DC area ranks near the top of the rich cities list, not all its residents feel good about it. Some of the city's young and wealthy feel guilty about inheriting six-figure sums from their wealthy Washington parents.
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2. San Jose
16 percent of households are in the top 5 percent of earners nationally.
Average household income: $88,339
California tax rate for 1 percent: 8.8 percent
California tax rate for next 4 percent: 8.7 percent
Average home cost:$602,400
Well-known wealthy inhabitants: George Lucas, Bill Gross
Extra:More than 15 percent of residents in Silicon Alley cash in $191,000 a year, according to Mercury News, making it the highest-earning metro region in California.
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1. Bridgeport/Stamford
18 percent of households are in the top 5 percent of earners nationally.
Average household income: $82,558
Connecticut tax rate for wealthiest 1 percent: 5.5 percent
Connecticut tax rate for next 4 percent: 7.7 percent (as % of income)
Average home cost:$408,600
Well-known wealthy inhabitants: Steve Cohen, Ray Dalio
Extra:Fairfield County clinched the No. 1 spot for the percentage of rich residents with real estate, and with a median household income above $80K, it's hard not to see why. The area's dining and night life are rushing to keep up with the influx of wealth, reports The Wall Street Journal, with a surge of new bars and restaurants setting up shop in downtown Stamford.
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Writer
Megan is a graduate student in NYU's Business and Economic Reporting program. She is a reporter for the Retail and Your Money verticals.
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