How Do You Know If You’re In The American Middle Class? (2024)

FAQs

How Do You Know If You’re In The American Middle Class? ›

Lower middle class

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.

One commonly used definition from the Pew Research Center sets a middle-class income between two-thirds and twice the national median income, or $67,819 to $203,458 for a family of four in 2022. Most Americans consider the lower end of that range, $75,000 and $100,000, to be middle class, according to the Post poll.

In 2020, according to Pew Research Center analysis, the median for upper income households was around $220,000 and the median for middle income households was slightly above $90,000.

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.

Lower class: The bottom 20% of earners with household incomes not exceeding $28,007. Lower middle class: Those in the 20th to 40th percentile of household income, between $28,008 and $55,000. Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744.

Where you rank by income. According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.

In Western cultures, persons in the middle class tend to have a higher proportion of college degrees than those in the working class, have more income available for consumption, and may own property. Those in the middle class often are employed as professionals, managers, and civil servants.

What qualifies as working or middle class varies from region to region, but country-wide, a salary of $30,000–$90,000 qualifies a single individual as middle class, with incomes below that range falling into the working class. Homer Simpson is working class.

The upper middle class often gets to enjoy more vacations, has minimal to no debt, and is on track to retire — and live comfortably once retired — without issue. “Middle class typically involves stable income and some savings, with incomes between $50,000 and $125,000, according to the U.S. Census Bureau.

What salary is considered rich? ›

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.

The Bottom Line. There is no official financial standard for what constitutes middle class. For most it's more about a standard of living—including owning a home, being able to afford to pay for a college education for your kids, and having enough disposable income to take a family vacation.

The main measure of wealth is net worth: the total value of your household's assets (like houses and savings), minus debts (like mortgages and student loans).

The lower middle class is often made up of less educated people with lower incomes, such as managers, small business owners, teachers, and secretaries. The upper middle class is often made up of highly educated business and professional people with high incomes, such as doctors, lawyers, stockbrokers, and CEOs.

"To escape the lower middle class, you'll need to earn as much as $150,000, which is substantially higher than what it used to be." In some high-cost cities, a $150,000 annual salary is stretched financially thin and qualifies as a "lower middle class" income, according to a recent analysis from GOBankingRates.

The most common professions of the upper-middle class tend to center on conceptualizing, consulting, and instruction. They include such occupations as lawyer, physician, dentist, engineer, professor, architect, civil service executive, and civilian contractor.

With that in mind, a net worth of $604,900 would put you in the upper 25% of American households and having $1 million or more should make you firmly a member of the upper class. Of course, it's important to remember that net worth is calculated by adding up your assets and then subtracting your liabilities.

upper class. the group of people who have the highest position and the most social and economic influence in a society. (Definition of upper class from the Cambridge Academic Content Dictionary © Cambridge University Press)

Upper class: $153,001 a year or more. Upper middle class: From $94,000 to $153,000 dollars per year.

"Working class" is a socioeconomic term used to describe persons in a social class marked by jobs that provide low pay, require limited skill, or physical labor. Typically, working-class jobs have reduced education requirements.