Here’s how much you need to earn in California to be middle class (2024)

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Here’s how much you need to earn in California to be middle class? ›

A study by Consumer Affairs has tabulated the minimum annual income require for a family of four to be considered middle class in each state, and in California, that income is $69,064.

In California, the middle-class household income ranges between $ 61,270 to $183,810, a nearly 50% increase from where it stood in 2012 when it was $40,933 to $122,800.

As of 2022 (the most recent Census data), the average median household income in the U.S. was $73,914, meaning the national range for the middle class is roughly $49,271 to $147,828.

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. "The upper middle class has grown...and its composition has changed.

However, new research from GOBankingRates shows that in some major U.S. cities, an annual income of $150,000 is only enough to qualify as “lower middle class.” This is especially pronounced in two Northern California cities and Arlington, Virginia.

Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131. Upper class: The top 20% of earners, with household incomes of $149,132 or more.

Key Findings. In a large U.S. city, a middle-class income averages between $52,000 and $155,000. The median household income across all 345 cities is $77,345, making middle-class income limits fall between $51,558 and $154,590.

There's no single definition of “middle class.” According to the Pew Research Center, middle class households have an income that's between two-thirds and twice the U.S. median household income of $70,784. (A $75,000 salary falls easily within this range.)

A Middle-Class Income Is $50,000 to $150,000

“The definition of middle income ranges from earning two-thirds to double the median household income,” said CFP and The Ways To Wealth founder R.J. Weiss, who cited the Pew Research Center's widely accepted definition of the term.

What is considered middle class in California in 2024? ›

With New Jersey ranking as the top state to make the most money to be considered middle class, other states ranking in the top five requiring salaries exceeding $50,000 to be in this category include Maryland ($63,321) and Massachusetts ($62,986), Hawaii ($61,633) and California ($61,028).

You'll need to earn more than half a million annually to be considered among the highest earning residents in 11 states and Washington, D.C.

Data comes from the U.S. Census Bureau for 2022. To learn more about this study, tap or click here. A separate study by Consumer Affairs published last month tabulated the minimum annual income required for a family of four to be considered middle class in each state, and in California, that income is $69,064.

As a rule of thumb, a good salary in Los Angeles is between $100k and $200k gross per year. Based on the cost of living in Los Angeles, this should come down to a minimum of $76,710 yearly after taxes.

Have an Adjusted Gross Income (AGI) on your 2020 CA tax return, that is: If filing as Head of household, qualifying widow(er), Married/Registered Domestic Partner (RDP) filing jointly: $500,000 or less. If filing as Single or Married/Registered Domestic Partner (RDP) filing separately: $250,000 or less.

With a $500,000+ income, you are considered rich, wherever you live! According to the IRS, any household who makes over $500,000 a year in 2023 is considered a top 1% income earner. Of course, some parts of the country require a higher income level to be in the top 1% income, e.g. Connecticut at $580,000.