This state has more millionaires per capita than any other

There are many ways to describe America. Some call it a patchwork of diverse cultures and social strata, which is a fancy way of saying that prosperity is concentrated in certain states more than in others.

As a result, some U.S. states have far more millionaires than others. By narrowing down the data, it is possible to pinpoint the one state with the greatest millionaire density, meaning the highest share of millionaire households relative to its total population.

This is a fascinating topic because it raises natural questions: Where do the most millionaires live in America? What draws so many high-net-worth households to a single state? Could it be a good place to settle if your household has built up a sizable nest egg?

You may already have a state in mind. The seemingly obvious picks would be California, New York, or Connecticut. The correct answer, however, will probably surprise you.

Lush Wealth in the Garden State

The American state with the most millionaires per capita is New Jersey. According to Statista research published in August 2024, the Garden State had roughly 246,000 households with a net worth of at least $1 million, translating to 9.76% of all New Jersey households. California and New York have far larger absolute counts of millionaire households, but their vast populations dilute those numbers considerably on a per-capita basis.

New Jersey's lead is narrow rather than decisive. Maryland finished second with 9.72% of households crossing the million-dollar threshold, while Connecticut came in third at 9.44%. Still, New Jersey beat 49 states to claim the top spot, including several that are widely assumed to concentrate wealth.

The natural follow-up question is whether being millionaire-dense actually makes the Garden State millionaire-friendly. That is a more complicated question, and the answer is not a clean yes.

Geography Attracts Prosperity

Real estate professionals often say the three most important factors in property value are location, location, location. For New Jersey, that rule applies at the state level.

New Jersey is home to Fortune 500 companies including Johnson & Johnson (NYSE:JNJ), Merck (NYSE:MRK), and Bristol Myers Squibb (NYSE:BMY). For executives and senior professionals in the pharmaceutical and healthcare industries, New Jersey is a practical choice of residence, placing them close to their employers while keeping them out of New York City proper.

That proximity to New York City is itself a key draw. New Jersey sits close enough to Manhattan to make commuting viable, but far enough removed to offer a quieter, more suburban lifestyle. New York City's energy and character are unmatched anywhere in the world, but a millionaire seeking space, calm, and room to raise a family may find the Garden State a more comfortable fit than a Manhattan high-rise. New Jersey delivers many of the cultural and economic benefits of a major metropolitan area without forcing residents to live inside one.

High property values also play a role. New Jersey carries some of the steepest property taxes in the country, but those same elevated valuations tend to push homeowners' net worth upward, particularly for households that have held property for decades. Wealth accumulates in the state partly because real estate appreciation inflates it.

A Taxing Financial Issue

Despite its millionaire-density title, New Jersey's tax environment poses a genuine challenge to wealthy residents, and several recent policy changes have sharpened that pressure.

Since 2020, any New Jersey resident with annual taxable income exceeding $1 million has been subject to what is informally called a "millionaire's tax," which carries a state income tax rate of 10.75% on those earnings. That rate applies to income between $1 million and $5 million. Income above $5 million was already taxed at 10.75% before the 2020 expansion.

On top of that income burden, New Jersey's real estate transaction rules have grown substantially more costly. Legislation signed by Governor Murphy on June 30, 2025, and effective July 10, 2025, overhauled the state's "mansion tax" in two significant ways. First, it shifted the payment obligation from buyers to sellers. Second, it replaced the old flat 1% rate with a tiered structure: sellers pay 1% on properties between $1 million and $2 million, with rates stepping up progressively to a cap of 3.5% on sales above $3.5 million. The updated tax is projected to generate more than $550 million annually for state programs.

The tax pressure is already showing up in migration data. IRS filings show that New Jersey lost $2.6 billion in adjusted gross income to interstate migration during the 2022-2023 period. Between 2020 and 2024, a net 192,209 New Jersey residents relocated to other states, representing the fourth-worst domestic outmigration in the country, trailing only California, New York, and Illinois. The destinations attracting the most departing wealth are Florida and Texas, both of which have no state income tax.

The takeaway is that millionaires are not necessarily flocking to New Jersey for its tax climate. Some are staying because of family ties, career anchors, and the state's unmatched access to New York City. Others are weighing whether the trade-off is still worth it. For now, the Garden State holds its title as America's most millionaire-dense state, but the competitive forces pulling against that standing are real and growing.

Editor's note: This article was updated to reflect the July 2025 overhaul of New Jersey's mansion tax, which shifted payment from buyers to sellers and introduced a tiered rate structure reaching up to 3.5% on sales above $3.5 million, and to add IRS migration data showing New Jersey lost $2.6 billion in adjusted gross income to other states during the 2022-2023 period.

Contact [email protected] for any questions or corrections.