Report: Colorado fifth-most likely state to produce millionaires

Study says state boasts 170,223 millionaire households

ColoradoBiz Staff //August 8, 2024//

Image courtsey of Adobestock.

Image courtsey of Adobestock.

Study says state boasts 170,223 millionaire households

ColoradoBiz Staff //August 8, 2024//

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A study commissioned by the Wix.com, a provider of website-building tools, has determined that Colorado ranks fifth among states when it comes to the likelihood of its residents becoming millionaires.

The study compares factors such as the average annual wage in each state, the corporate income and personal tax rates, number of millionaires and billionaires in each state, and the number of businesses turning a profit in the billions.

One of many factors not considered in the study: rising property values, a key element of wealth-building for most homeowners and other property investors, especially in Colorado where property values have soared in recent years.

Still, for whatever it lacks, the study gives would-be savers some things to ponder.

It refers to another report, by Investopia, in pointing out that for first time in history, more than 1% of adults in the U.S. are worth at least $1 million, with the number expected to increase 26% by 2026 — which would mean more than 3.3 million millionaires nationwide.

According to the Wix.com report, Colorado boasts 170,223 millionaire households, or nearly one in 12 (7.5%) of its population; the state also is home to 12 billionaires. Colorado residents earn an average of $67,870 annually, the report said, and those residents would need to save 50% of their wages for 29 years to achieve millionaire status.

That’s significantly less than the 44 years it would take a resident of Louisiana saving 50% of their wages, or the 41 years it would take residents of West Virginia, which ranked 50th in the report and claims no billionaire residents. Joining West Virginia in the bottom five in likelihood of producing millionaires were Alabama, New Mexico, Arkansas and Mississippi.

Easiest U.S. states to accumulate wealth
	State	Average Annual Wage ($)	Corporate Income Tax	Personal Income Tax	Share of millionaire households	Years it would take a couple to reach $1 million (based on both saving 25% of the average state salary)
1	New York	74,870	7.25%	10.9%	7.52%	27
2	Washington	72,350	0%	7%	7.85%	28
3	Massachusetts	76,600	8%	9%	9.38%	26
4	Texas	57,300	0%	0%	6.32%	35
5	Colorado	67,870	4.55%	4.4%	7.48%	29
6	California	73,220	8.84%	13.3%	8.51%	27
7	Illinois	69,360	9.5%	4.95%	7.13%	29
8	Maryland	69,750	8.25%	5.75%	9.72%	29
9	Virginia	65,590	6%	5.75%	8.31%	30
10	Florida	55,980	5.5%	0%	5.87%	36