What income is middle class?
Pew draws on the same formula used in the SmartAsset report, defining the middle class as those with incomes between two-thirds and twice the national median income. That works out to a national salary range of roughly $52,000 to $156,000 in 2020 dollars for a three-person household.
Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
The median household income of $104,802 sits comfortably in the middle class range of $70,217 and $209,604 per year.
Top 10% income
The average earnings of those in the top 10% were roughly $173,000 in 2020, according to a study by the Economic Policy Institute (EPI). Landing in the top 10% is a fairly attainable goal for upwardly mobile Americans.
Across the entire country, that range is between $47,189 and $141,568, based on Census Bureau income data. But $150,000 is still a middle-class income by Pew's definition in nearly half of the country's 50 most-populated metropolitan areas, where incomes tend to be high.
In the U.S. 18% of individuals earn more than $100,000, according to Zippia, a career advising company, and like the cost of living, income varies greatly between cities and states.
| Income group | Income |
|---|---|
| Low income | Less than $52,200 |
| Middle income | $52,200 - $156,600 |
| Upper income | More than $156,600 |
The Modern Wealth Survey collected responses from 1,000 adults between the ages of 21 and 75. According to those surveyed, it would take an average net worth of approximately $2.2 million to be considered “wealthy” in 2022. In 2021, survey respondents indicated it would take a net worth of $1.9 million.
From the top 5% to the top 1%
Salaries start to jump significantly the closer you get to the top 1%. You'll start to see dramatic shifts in the top 5%, where the EPI found the average earners significantly increased to $343,000 in 2020, up from $324,000 the year before.
What is a good monthly income for a family of 4?
| . | FAMILY SIZE | |
|---|---|---|
| STATE | 1 EARNER | 4 PEOPLE * |
| Arizona | $52,334 | $80,956 |
| Arkansas | $43,585 | $68,341 |
| California | $57,962 | $96,813 |
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $65,000 in 2021, according to the U.S. Census Bureau.21 Using Pew's yardstick, middle income is made up of people who make between $43,350 and $130,000.7 This is a ...
Gallup has, for a number of years, asked Americans to place themselves -- without any guidance -- into five social classes: upper, upper-middle, middle, working and lower. These five class labels are representative of the general approach used in popular language and by researchers.
They found that the top 20% of all Americans earn over $130,000 in income. Thats over 5 times more than the bottom 20%. While that's interesting in and of itself, what even more important is that the top 20% are also receiving over 50% of all the income earned in the country.
And because of racial and gender wage gaps, women are less likely to reach the six-figure threshold compared with men. Just 11% of women make $100,000 or more on a national level, whereas 21% of men do.
Across the US, the average income for the top 2% of all earners is $206,000.
If you're earning $75,000 each year, you're doing a bit better than half the country. According to data from the U.S. Census Bureau, the median household income in 2021 stood at $70,784, so that extra $4,216 puts you in the upper 50 percent of earners.
| Annual household income in U.S. dollars | Percentage of U.S. households |
|---|---|
| 75,000 to 99,999 | 11.9% |
| 100,000 to 149,999 | 15.9% |
| 150,000 to 199,999 | 8.3% |
| 200,000 and over | 11.6% |
For comparison, the median income for U.S. households overall is under $70,000, with only 10% of households earning more than $200,000, according to SmartAsset. Coastal states like New York and California tend to have the highest earners, while top earners in more rural states like Mississippi and Arkansas make less.
How Many People Make 6-Figure Salaries in the US? A minority of Americans make over $100,000 a year. According to Zippia, roughly 33.6% of Americans make six figures annually.
How rare is a 100k salary?
Making $100,000 a year is not common in the U.S. According to the U.S. Census Bureau, only 15.3% of American households make more than $100,000.
Earning a six-figure income has long been a sign of success and financial comfort for American workers. Earning a six-figure income has long been a sign of success and financial comfort for American workers.
- THE RISKS OF A ONE-DIMENSIONAL WEALTH PERSPECTIVE. The proverb “shirtsleeves to shirtsleeves in three generations” is pervasive across many cultures. ...
- Self (Human Capital) ...
- Relationships (Social Capital) ...
- Values (Cultural Capital) ...
- Money (Financial Capital)
Sociologists generally posit three classes: upper, working (or lower), and middle. The upper class in modern capitalist societies is often distinguished by the possession of largely inherited wealth.
The upper middle class are able to get high paying jobs because they have the highest level of education, and they tend to have a skill set that other people do not have. They tend to occupy white-collar jobs, have university degrees, have comfortable houses with mortgages, go on holiday yearly, and drive nice cars.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Millionaire Statistics by Gender
The average age for women to have $1 million set aside for retirement is 58.5. The average age for men to have $1 million set aside for retirement is 59.3.
The majority of retirees are not millionaires but it's possible to reach $1 million in savings if you're strategic in your approach. Getting an early start can be one of the best ways to reach your goal, as you'll have more time to benefit from compounding interest.
| Age Range | Top 10% | Top 5% |
|---|---|---|
| 20-24 | $71,268 | $86,540 |
| 25-29 | $105,884 | $134,392 |
| 30-34 | $146,609 | $175,116 |
| 35-39 | $185,297 | $247,403 |
The average annual average salary in the U.S. is $60,575. The median annual salary, which is often less skewed by outlying numbers, is $56,420. It's worth noting that average and median salaries vary quite a bit by state.
What is considered upper class?
In 2021, the median household income is roughly $68,000. An upper class income is usually considered at least 50% higher than the median household income. Therefore, an upper class income in America is $100,000 and higher. However, an upper class income also depends on where you live.
The 2010 study found that money could only boost happiness up to a point — about $75,000 in annual earnings. Beyond that figure, the researchers concluded, money had little impact.
Average Household Budget: How Much Does the Typical American Spend? American households spend an average of $61,334 per year, or $5,111 per month — 82% of our after-tax income. Most households have the same major expenses: housing, transportation, taxes and food make up 78% of our budgets.
Overall, Americans need an average post-tax income of $68,499 to live comfortably in the U.S., according to recent data from SmartAsset.
| Annual Income | Share of Americans |
|---|---|
| Less than $100k | 65.6% |
| $100k-$149.9k | 15.5% |
| $150k-$199.9k | 8.3% |
| $200k+ | 10.3% |
Earning $300,000 a year is still considered middle class in this U.S. city—it's not New York or LA. Around half the American population is considered middle class, according to the most recent Pew Research data. But being middle class looks different depending on where you are.
With the median U.S. income being about $80,000 a year, a household of four earning between roughly $52,000 and $175,000 a year is considered middle class.
Elementary School Teacher: Primary school teachers are generally considered lower-middle class. They usually hold college degrees, but often do not hold graduate degrees; they make comfortable incomes, but have low accumulated wealth; their work is largely self-directed, but is not high status.
The middle class is a socio-economic strata that falls in between the working class and the upper class. Those in the middle class have enough disposable income to afford minor luxuries like vacations or restaurants, but also rely on borrowing for big-ticket items like homes and cars.
As of May 20, 2023, the average annual pay for a Working Class in the United States is $84,822 a year.
What percentage of men make over $100000 a year?
Key Statistics About How Many People Make Over 100k A Year
217% more men make $100k per year compared to women. 6% of women earn more than $100k per year. 13% of men make more than $100k per year. 48% of Americans making $100k+ a year are living paycheck to paycheck.
Some workers begin earning six figures in their twenties and thirties. Economists nickname them HENRYs, for “high earners, not rich yet.” But for most people, their “peak earning years” are from age 35 to 54. The majority of people who make six figures will do so in their 30s.
How Much Does the Average American Make? According to the U.S. Bureau of Labor Statistics, the median weekly earnings for full-time workers in the fourth quarter of 2022 was $1,085. This was measured based on the earnings of 118.8 million full-time wage and salary workers.
| Annual Household Income | % of Americans Earning More |
|---|---|
| $65,000 to $69,999 | 35.03% |
| $70,000 to $74,999 | 31.85% |
| $75,000 to $79,999 | 29.22% |
| $80,000 to $84,999 | 26.57% |
In fact, the average American household earns a median income of under $70,000, but in some places, the top 1% can earn as much as $955,000. Those annual earnings can seem far out of reach in a country where less than 10% of all households earn more than $200,000, according to the U.S. Census Bureau.
How much does the average American make in a lifetime? The answer varies by industry, education level, gender and location. The typical lifetime gross income range for American males is $1.13 million to $3.05 million, and $510,000 to $1.86 million for women, according to Social Security Administration data.
| Data | Top third | Top 3% |
|---|---|---|
| Household income | ||
| Lower threshold (annual gross income) | $65,000 | $200,000 |
| Exact percentage of households | 34.72% | 2.67% |
| Personal income (age 25+) | ||
Earning $150,000 puts you well above the average salary in the U.S — over double the median income, in fact, according to Census data. With this salary, you can likely afford a bigger home than most, and likely in a more desirable location.
| Household Income Percentile | 2022 | 2021 |
|---|---|---|
| 2% | $700 | $800 |
| 3% | $3,943 | $4,165 |
| 4% | $7,182 | $7,200 |
| 5% | $9,474 | $9,372 |
| Data | Top third | Top 15% |
|---|---|---|
| Household income | ||
| Lower threshold (annual gross income) | $65,000 | $100,000 |
| Exact percentage of households | 34.72% | 17.80% |
| Personal income (age 25+) | ||
How much house can I afford if I make 200K a year?
How much house can I afford if I make $200K per year? A mortgage on 200k salary, using the 2.5 rule, means you could afford $500,000 ($200,00 x 2.5). With a 4.5 percent interest rate and a 30-year term, your monthly payment would be $2533 and you'd pay $912,034 over the life of the mortgage due to interest.
Approximately 33.6% of Americans make over $100,000 per year. 15.3% of that number are those who make between $100,000-$150,000, and only 0.1% make over a million per year.
It can be more than enough for an individual or even a small family to live comfortably. With $100,000 a year, a person could cover typical expenses, pay down debt, build their savings, contribute toward retirement, invest, and still have enough money for entertainment, hobbies, and vacations.
Today, celebrities, politicians, investors, and other wealthy individuals fall into this group. In the United States, those who lived—and continue to live—in leadership roles in society are often considered part of the upper class. These are people whose status has been passed down through generations.
