How Much Income Puts You in the Upper, Middle, or Lower Income Brackets, According to the Latest Data

Curious to know how your income compares to other Americans? Using the latest data from the U.S. Census Bureau and research benchmarks, it’s possible to draw clear lines around what “lower,” “middle,” and “upper” income look like in today’s economy.

Here’s how the brackets break down.

Lower, Middle, and Upper Income: Today’s Benchmarks

Lower, middle, and upper-income groups are typically defined by calculating ranges relative to the nation’s median household income, which is the point where half of all households earn more and half earn less. According to the latest Census Bureau figures, the median household income is about $83,730 per year.

Using this benchmark, we can classify households into the following income brackets.

Lower Income: Less Than $55,820 per Year     

A common definition of a “lower-income household” is one that earns less than about two-thirds of the median household income. The median is $83,730, so the lower-income bracket begins at $55,820 per year.

According to Census estimates, about 30% of U.S. households have annual incomes below $50,000. Raise that threshold by another 5% or so, and that figure likely jumps a few percentage points.

How comfortably households can live on this income depends on many factors, including homeownership, number of dependents, health, and the local cost of living.

At this income level, covering basic expenses such as housing, food, transportation, and health care can be challenging, particularly in higher-cost areas. That often makes saving difficult and leaves households vulnerable to financial shocks, such as unexpected medical bills or a job loss.

Middle Income: $55,820 to $167,460 per Year

Middle-income households are broadly defined as earning between two-thirds of and twice the median household income. Using the 2024 median of $83,730, that equates to between $55,820 and $167,460 per year.

This range captures the broad middle of the U.S. income distribution. According to Census income distribution tables, a bit under half of all U.S. households fall somewhere in this band.

The experience of families within this range can vary widely. For instance, a single person earning $100,000 per year may be financially comfortable, while a family of five bringing in the same amount could feel stretched.

Upper Income: Over $167,460 per Year

Households earning more than twice the median income are typically considered upper income.

Within this category, there’s a wide spread of earnings. Households at the lower end of this range may still need to live frugally in some high-cost cities, while those at the very top can feasibly live very comfortably anywhere.

Based on household income distribution data, the upper-income bracket can be further divided as follows:

• Top 10% of households: about per year and above
• Top 5%: about per year and above
• Top 1%: about per year and above

These higher-income thresholds reflect the upper tail of the national household income distribution and are not what the Census defines as income classes.

Where Your Income Falls

Here’s a simplified snapshot of national income tiers based on the most recent data.