Defining yourself as being within the American middle class can be tricky, as it depends on everything from where you live to how you live. Your social class in the U.S. includes many factors and can teeter back and forth based on education levels, income per household and tax brackets.
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Pew Research Center analysis estimates that lower-income households last year had incomes less than $56,600, and upper-income households had incomes greater than $169,800. So, what will the median income for the upper-middle class be in 2025? Here’s a look at the factors involved so you can see if you fit into this category.
Quick Take: Median Upper-Middle-Class Income in 2025
Based on the most recent U.S. Census Bureau data, the median household income was listed at $75,580. If you’ve lived in a middle-income household and are curious to see what it would take to boost your status to the upper-middle class, here are some key takeaways:
- The amount that’s considered middle class or upper-middle class will depend on where you live in the country.
- Based on the definition of the middle class, the income range for this group would be anywhere from $49,715 to $149,160.
- That means that to be considered in the top 20% of the middle class, you would need to earn between $106,092 and $149,160, depending on where you live.
Based on these numbers, a household income between $106,000 and $150,000 would put you among American upper-middle-class individuals and income earners in most cities around the country. However, there’s more to these numbers because location is such a major factor.
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Median Income for the Upper-Middle Class Varies by Location
According to GOBankingRates research, the median income varies tremendously by state due to the cost of living and employment possibilities. For example, if you live in Mississippi, a household income of $91,841 would put you in the upper-middle class because the median income is $52,985. In Maryland, the median household income is $98,461, so your household would have to bring in $170,666 to be considered one of the upper members of the middle class.
While looking at the national average helps give us a better idea of what it takes to be in the upper-middle class, you also have to consider the cost of living in your city and state.
Here are some more specific factors to consider about being in the upper-income tier of the middle class where you live:
- Housing prices
- Size of your family
- Local labor market
- Overall prices of everyday items
- Lifestyle and spending habits
- Tax levels
While an income of $106,000 to $150,000 lands you in the upper-middle class based on national averages, this isn’t the case if you live somewhere with a much higher cost of living or need to adjust for household size, cost and property taxes. California, for example, has a threshold of $159,302 to be considered upper-middle class, and this number only goes up in expensive cities like San Francisco and Los Angeles.
If you’re thinking about moving your family to upgrade your lifestyle, you’ll want to know the cost of living going in and if you can maintain an upper-middle-class status in that city.
How Might the Definition of Upper-Middle Class Change Throughout 2025?
In 2025, it’s possible that the income range defining the upper-middle class could shift upward due to factors such as inflation and rising costs of living.
The expected annual inflation rate this year has risen to 2.6%. The core inflation rate, which excludes categories that have high price fluctuation, such as energy and food, is also expected to rise to 2.8%, according to the Commerce Department’s personal consumption expenditures price index.
What this means for the middle class is that daily living expenses will continue to rise throughout 2025, putting pressure on households to maintain their standard of living if they generate the same income.
Final Take To GO
The bottom line is that if you make between about $106,000 and $150,000, then you would probably be considered upper-middle class in most states. However, the actual amount of income you need depends on various factors, such as household size and the affordability of your residential location.
Households will continue to face high inflation rates and rising costs of goods and services in 2025. As a result, the range of income that defines the upper-middle class could shift upwards.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: What Is the Estimated Median Income for the Upper-Middle Class in 2025?
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