![]() ![]() In many of these states, income distribution tends to most disproportionately favor the richest people in the state. Generally, states where the middle class by this definition has a lower income range have lower incomes across the board and higher poverty rates. Top business groups to Trump: Stop delaying transition to Biden administrationĭisappearing jobs: These 10 jobs could disappear or decline because of COVID-19 At the other end of the spectrum, the upper range of the middle 60% of earners is as low as $148,210 and as high as $295,250.īecause this income distribution is so wide, it is likely that many households, even after adjusting for cost of living, can technically fall into the middle class in their state yet still be unable to meet the basic comfortable standard of living many associate with a middle class lifestyle. Adjusting for the cost of living, the bottom threshold of the middle class in one state is as low as $15,165 and as high as $41,532 in another. The RPP-adjusted boundaries were defined as the range of income that could be considered middle class in a given state.įrom state to state, the cost of living varies significantly. We adjusted these boundaries for state-level cost of living using regional price parity data for 2018 from the Bureau of Economic Analysis. We reviewed the lower boundary of the second quintile and the upper boundary of the fourth quintile, representing in total 60% of American families. ![]() Census Bureau’s 2018 American Community Survey. ![]() ![]() To determine the income it takes for a family to be considered middle class in every state, using one of the wider definitions, 24/7 Wall St. Other varying definitions include a range of annual household incomes as low as $13,000 and as high as $230,000. One Pew Research Center study defines it as households earning between two-thirds and twice the median household income. For many, this group is important for cultural reasons, signifying “everyday America.” For others, it represents the consumer class that drives the American economy.īut who actually makes up the middle class in the United States? For such a commonly-discussed group, there is surprisingly little consensus on how to define the group. The strength of the American middle class is a common point of focus among politicians and analysts, as it was during this most recent presidential election. Inflation hardship information by detailed income group is courtesy of Gallup.View Gallery: Income: What each state considers a middle class household Our story references Urban Institute’s definition of the “middle-middle” class, rather than the full range of lower-middle-, middle-middle- and upper-middle-class incomes.ĭata about retirement savings and emergency savings were calculated from the Federal Reserve Board’s Survey of Household Economics and Decisionmaking microdata. Stephen Rose at the Urban Institute, whose definition of the middle class is cited in this story, could not be reached for comment. Rakesh Kochhar at the Pew Research Center, Richard Reeves at Brookings, Caitlin Zaloom at New York University and Rachel Sherman at the New School were consulted for this story. Our three definitions of the middle class come from the Pew Research Center (distance from median income), Brookings Institution (middle 60 percent of household incomes) and Urban Institute (distance from the 2021 poverty level). The Census Bureau does not calculate median incomes for all rural areas, so we used the median of median incomes in a state’s rural Zip codes as a comparison point. Income for Zip codes and core-based statistical areas are based on the Current Population Survey using data collected between 20. The national distribution of household income across the United States was calculated from the 2022 Current Population Survey’s Annual Social and Economic Supplement. We used a variety of data sources on income. Paper and bill textures in topper from iStock. Reporting by Alyssa Fowers, Shelly Tan, Luis Melgar and Kevin Schaul. ![]()
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