Financial news site ConsumerAffairs broke down how much you need to earn in each state to be considered middle class in 2023.|
A family of four in California needs to earn nearly $70,000 annually to still be considered middle class in 2023, according to a new report by ConsumerAffairs.
Citing Census Bureau data showing about a quarter of middle-class American families were struggling with financial stability in 2020, the financial news and review website broke down how much you need to earn in each state to still be considered middle class after years of high inflation rates.
The Sept. 8 report said the minimum annual income required in 2023 for a family of four to be middle class in California is $69,064.
Alabama and Arkansas both required the lowest minimum income to be considered middle class, at $51,798. Hawaii households had to earn the highest amount, $82,630, to be called middle class, followed by New York and District of Columbia households, who had to earn $81,396 annually to be middle class.
ConsumerAffairs reached its conclusion by using the Pew Research Center's income calculator, which compares household income and the cost of living in each state based on 2018 data.
ConsumerAffairs then put those numbers into an inflation calculator provided by the U.S. Bureau of Labor Statistics to reflect 2023’s inflation rates.
Oliver Rust, head of Product at independent inflation data aggregator Truflation, told ConsumerAffairs that the percentage of households in the U.S. considered middle class is shrinking as incomes become more polarized due in part to inflation.
For more information, go to consumeraffairs.com.
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