What Is the Median Household Income? - NerdWallet (2024)

FAQs

What is the real median household income? ›

Real (inflation-adjusted) median household income increased by 4.0% to $80,610, the first increase since the pandemic.

Mean or “average” income takes the total earnings across a sample and divides it by the number of participants. On the other hand, median income is the midway point of a sample, with half of those sampled earning above the median and half earning less.

In the first quarter of 2024, median weekly wages for workers in the US was $1,139, according to BLS. That translates to a monthly income of $4,935, or $59,228 per year. That's a 3.5% increase over the first quarter of 2023 when median weekly wages were $1,100.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

According to the Bureau of Labor Statistics's most recent data (May 2022), the average salary nationwide is $61,900, which means that $70,000 is a common salary — but above the national average.

Over one-third of American families earn $100,000 or more

The U.S. Census Bureau found that 37.1% of U.S. households earned at least $100,000 in 2022. Here's a more detailed breakdown of six-figure income brackets and the percentage of households in each one: $100,000 to $149,999: 16.9%

One estimate found that the median U.S. household income is $77,397. Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.

While there's no definitive line, households in the top 20% of earners are generally considered upper class. According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you'd typically need an income exceeding $153,000 – more than double the national median.

In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes less than $56,600, and upper-income households had incomes greater than $169,800. (Incomes are calculated in 2022 dollars.)

What is a good salary for a family of four? ›

A family of four needs to earn at least $106,903 a year to cover their necessities in most U.S. states, a recent SmartAsset study reveals. The findings are based on cost estimates for housing, child care, transportation, health care, taxes and other common expenses, as tracked by the MIT Living Wage calculator.

U.S. median household income 2022, by state

In 2022, the real median household income in state of Alabama was 59,910 U.S. dollars. The state with the highest median household income was Maryland, which was 108,200 U.S. dollars in 2022. The average median household income in the United States was at 70,784 U.S. dollars.

In 2024, a large U.S. city's middle-class income averages between $52,000 and $155,000, with the median household income across all 345 cities at $77,345, making middle-class income limits fall between $51,558 and $154,590, SmartAsset noted.

Average Salary in US per Month Trends

According to the recent report by the Bureau of Labor and Statistics, the 2024 U.S. average salary per month is approximately $4,960, based only on data from the first two quarters of 2024. In comparison, the 2015 average monthly salary was around $3,500.

Add up all the household incomes and divide by the number of households. Takes into account all households in an area and is the average income level for the area.

One estimate found that the median U.S. household income is $77,397. Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.