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.

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.

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.

The middle class is generally perceived as those who fall between the socio-economic hierarchy of the working class and upper class. Those that have attained a college degree, are homeowners, able to send their children to college and have discretionary income consider themselves members of the middle class.

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.

Some sources define the upper middle class as anyone making a lot of money but haven't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.

Meaning of middle class in English. a social group that consists of well-educated people, such as doctors, lawyers, and teachers, who have good jobs and are not poor, but are not very rich: The upper middle class tend to go into business or the professions, becoming, for example, lawyers, doctors, or accountants.

What is considered a rich salary? ›

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.

You can look at income, education, marital status, location, family history, gut instinct and a host of other factors to find out where you fall.

According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy​​​​. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia​​.

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.

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.

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.

According to the OECD, the middle class refers to households with income between 75% and 200% of the median national income.

One way some researchers divide individuals into economic classes is by looking at their incomes. From that data, they split earners into different classes: poor, lower-middle class, middle class, upper-middle class and wealthy.

The term upper class refers to a group of individuals who occupy the highest place and status in society. Individuals who make up the upper class have higher levels of disposable income and exert more control over the use of natural resources.

"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.