Incomes vary widely across the United States, with some people making many times the amount that others earn. If you've ever wondered how your personal finances stack up, and what "class" your income officially puts you in, here's what you need to know.
What income do you need to be upper, middle, or lower class?
Based on 2021 data, here's what you would need to earn in order to be in each class:
- Lower class: This is defined as the bottom 20% of earners. Those in the lower class have an income at or below $28,007.
- Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000
- Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744.
- Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131.
- Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.
Take a look at these numbers and see where you fall based on your own earnings. And remember, this is a snapshot in time -- your earnings can change throughout your life, and so can your class designation.
Will your success be determined by your income and class?
It's probably not a surprise that those in the upper classes or in the upper middle class do have a higher net worth than those in the lower class or the lower middle class. But the disparity is greater than you might think. While the median net worth of those with incomes of $149,132 or higher is $805,400, the median net worth of those in the lower class is just $12,000.
Your income impacts how easy it is for you to build wealth. If you make more money, it is easier to save it and invest it in a brokerage account where it can work for you. If you make less money, then you may struggle even to cover the necessities out of your checking account, much less to buy valuable assets that help you grow richer over time.
But that doesn't mean people who don't make a lot of money can't be a financial success. A lot depends on what you do with the money you actually have, including how much you spend and how much you save.
There are plenty of people who make over $100,000 a year who live paycheck to paycheck, and plenty of people with incomes that put them squarely in the lower or lower middle class who have diligently saved and grown quite wealthy over many years.
Here's how you can improve your standing
Don't be discouraged if you aren't in the class you hope to be. For one thing, you have opportunities to increase your income by taking the following steps:
- Learning new job skills: You could obtain a certification, take part in a management training program at work, or take some classes to develop skills that may help you get promoted (such as computer training courses or public speaking classes), depending on your industry.
- Take on a side hustle: The average side hustle brings in $483 per month, which is a good amount of extra money that could make a meaningful difference in your income.
- Work some extra hours: If your company allows you to work overtime, take advantage of it, as many people are paid time and a half for overtime hours.
- Negotiate your salary: According to Pew Research, when workers negotiated for higher pay, 28% said they received the extra money they asked for and 38% indicated they were given more than originally offered but less than their ask. Whether you are getting a new job or staying at your current job but feel you're underpaid, it doesn't hurt to make a request for more money -- especially if you can find salary data to back up the fact that others in your industry are paid more.
And even if your earnings never put you in the top 20% of earners, you can still have a rich life and end up with the financial security you deserve -- especially if you prioritize saving as much as you can for as long as you can.
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FAQs
Upper-middle class: $94,001 – $153,000. Upper class: greater than $153,000.
Am I upper or lower middle class? ›
Lower middle class: Those in the 20th to 40th percentile of household income, between $28,008 and $55,000. Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131.
What income level is middle class? ›
Middle-class income currently ranges from a little under $40,000 to a little over $119,000. The definition of middle class extends beyond income to factors like education, location and marital status.
Does middle class mean wealthy? ›
The middle class is the economic stratum between the working class and the wealthy. In the United States, the middle class occupies about half of the population, mainly consisting of people who work in white-collar professions, small businesses, or skilled trades.
What income is considered wealthy? ›
You'll need to earn more than half a million annually to be considered among the highest earning residents in 11 states and Washington, D.C. "This comes down to cost of living," Murray said.
Are doctors middle class? ›
The most common professions of the upper-middle class tend to center on conceptualizing, consulting, and instruction. They include such occupations as lawyer, physician, dentist, engineer, professor, architect, civil service executive, and civilian contractor.
At what point are you upper middle class? ›
One common way to classify the upper middle class is based on income. The upper middle class is often defined as the top 15% to 20% of earners. According to the Social Security Administration's 2022 wage data, the average upper-middle-class income was roughly between $80,000 and $100,000.
What salary is considered lower class? ›
| Persons in Household | Household Income |
|---|
| Lower Class | Middle Class |
|---|
| 1 | Up to $39,483 | $39,484 to $118,450 |
| 2 | Up to $55,837 | $55,838 to $167,513 |
| 3 | Up to $68,386 | $68,387 to $205,160 |
3 more rowsThis class divides into two groups: lower‐upper and upper‐upper. The lower‐upper class includes those with “new money,” or money made from investments, business ventures, and so forth. The upper‐upper class includes those aristocratic and “high‐society” families with “old money” who have been rich for generations.
What is the upper class lifestyle? ›
Rather, it means you can afford more than you ever could before, including goods and services that you used to view as being a luxury or out of reach. It also means you can afford medical expenses, travel and more expensive hobbies or interests. “Being in the upper class means almost no restrictions on lifestyle.
The wealth of U.S. households by income tier. There is a wide gulf between the wealth of lower- and upper-income U.S. households. In 2021, the typical upper-income household had a median net worth of $803,400. This was 33 times as much as the wealth of the typical lower-income household ($24,500).
What income is upper class in 2024? ›
As of Apr 29, 2024, the average annual pay for the Upper Class jobs category in the United States is $59,699 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.70 an hour. This is the equivalent of $1,148/week or $4,974/month.
What makes you upper class? ›
The term upper class refers to a group of individuals who occupy the highest place and status in society. Individuals who make up the upper class have higher levels of disposable income and exert more control over the use of natural resources.
Are millionaires upper class? ›
60% of those millionaires identify as upper middle class, while 31% interestingly identify themselves as just middle class. Surprisingly, a large number of millionaires reside comfortably in the middle class, revealing an oddly curious disconnect between their sense of self and their financial security.
Who has the richest middle class? ›
However, since 2019 Canada has the wealthiest middle class of any country in the world. The most common figure used by researchers and economics professors when comparing middle-class economies across different countries is median annual income, standardized to U.S. dollars.
What would upper class be considered? ›
In 2021, the median household income is roughly $68,000. An upper class income is usually considered at least 50% higher than the median household income. Therefore, an upper class income in America is $100,000 and higher.
What is the top 10% income? ›
How much do you need to earn to be in the top 10% income bracket? A 2022 study by the Economic Policy Institute (EPI) found that the top 10% of earners nationally received an average income of $167,639 in 2021.
What are the factors of the upper class? ›
Traditionally, high levels of cultural capital and an appreciation of high culture (classical music, high literature, etc.). A network of privileged social contacts (the 'old boys' network) allowing them greater access to positions of power.
