by COURTNEY RAU AND KONNER MCINTIRE | The National Desk
Tue, May 21st 2024 at 4:54 PM
Updated Wed, May 22nd 2024 at 10:55 PM
FILE - Shoppers pass displays of goods in a Costco warehouse Sunday, Feb. 25, 2024, in Sheridan, Colo. (AP Photo/David Zalubowski)
WASHINGTON (TND) — America’s middle class is defined as earning an income between two-thirds and twice the national median household income, the Pew Research Center explains.
According to the latest Census Bureau data from 2022, the median household income in the U.S. was $74,580. Based on that number, if you earn between $50,000 and $150,000 a year, you qualify as middle class.
Around half of Americans fall into the middle-class category as of 2021, according to the Pew Research Center, but the numbers have been shrinking over time, down from 61% in 1971.
Meanwhile, more than 1 in 5 Americans were considered upper class, compared to 14% in 1971, and the lower-income tier also grew from 25% in 1971 to 29% in 2021.
Whether you are considered middle class may depend on where you live, as each state has a range of what they consider as middle class.
Maryland, New Jersey and Massachusetts require the highest income to be considered lower-middle class. In those states, you need to make nearly $65,000 a year. In Maryland and New Jersey, you are still considered at the higher end of the middle class if you make nearly $200,000.
On the other hand, Mississippi, West Virginia and Arkansas have the lowest income needed to be a part of the middle class. To fall into the category in those three states, your household income should be between $35,000 and $37,000.
These ranges change over time. According to GoBankingRates, the definition of the middle class changed the least in Alaska, where the household income needed increased by just 23.5% from 2012 to 2022. Meanwhile, in Oregon, the household income needed to be considered increased by more than 50% during that same time, which was the biggest increase out of any state.