In 2022, approximately 19% of U.S. adults were categorized as upper-income, according to a recent analysis by the Pew Research Center. This figure is part of a broader spectrum of income tiers, with the majority of Americans (52%) identified as middle-income and 28% as lower-income. Understanding these income classifications, particularly what constitutes upper middle class income, is crucial for grasping the economic landscape of the United States.
The Pew Research Center’s analysis delves into the financial well-being of American households, utilizing data from the most recent government surveys. Their findings offer valuable insights into how income is distributed across the population and how individuals can determine their own income tier. To explore your income bracket and compare it against others, Pew Research Center provides an interactive calculator that allows you to benchmark yourself against:
- Other adults in your metropolitan area
- U.S. adults overall
- U.S. adults with similar demographic characteristics
Find more in-depth research about the U.S. middle class on Pew Research Center’s topic page.
Further analysis from Pew Research Center reveals significant variations in income distribution across different metropolitan areas in the U.S. For instance, the proportion of adults in middle-income households ranges from a low of 42% in San Jose-Sunnyvale-Santa Clara, California, to a high of 66% in Olympia-Lacey-Tumwater, Washington. Similarly, the percentage of adults in lower-income households varies from 16% in Bismarck, North Dakota, to 46% in Laredo, Texas. The upper-income tier also shows considerable geographic disparity, ranging from 8% in Muskegon-Norton Shores, Michigan, to 41% in San Jose-Sunnyvale-Santa Clara, California.
Defining Upper Middle Class Income: Methodology and Key Factors
To accurately determine income tiers, including the upper middle class income threshold, the Pew Research Center employs a methodology that considers household income adjusted for household size. This adjustment is crucial because it recognizes that a household’s financial needs vary depending on the number of people living in it. The income is standardized to a three-person household, which is close to the average U.S. household size.
The income tier classification is further refined by factoring in the cost of living in different metropolitan areas. This regional adjustment acknowledges that the same income level can have different purchasing power depending on where you live. Areas with higher costs of living require a higher income to maintain the same standard of living as areas with lower costs.
According to Pew Research Center’s methodology, middle-income households are defined as those with an income ranging from two-thirds to double the U.S. median household income. In 2022, this range was approximately $56,600 to $169,800 for a three-person household at the national level. Households earning less than $56,600 were classified as lower-income, while those earning more than $169,800 were considered upper-income. Therefore, to answer the question “What Is Upper Middle Class Income?”, based on this data, it falls into the upper-income bracket, starting above $169,800 annually for a three-person household in 2022.
It’s important to note that these income thresholds are adjusted for the cost of living in each of the 254 metropolitan areas included in the analysis. For example, Jackson, Tennessee, with a lower cost of living, has a lower middle-class income threshold than San Francisco-Oakland-Berkeley, California, where the cost of living is significantly higher. This means that the definition of upper middle class income is not a fixed number but varies geographically to reflect local economic conditions.
To illustrate the cost-of-living adjustment, consider these examples provided by Pew Research Center:
- In Jackson, Tennessee, where the price level is 13.0% below the national average, a household needs an income of approximately $49,200 to reach the national middle-class threshold of $56,600.
- In the San Francisco-Oakland-Berkeley metropolitan area, with a price level 17.9% above the national average, a household needs an income of about $66,700 to meet the same national middle-class threshold.
Understanding Income Tiers Beyond Income: Demographic Comparisons
The Pew Research Center’s income calculator goes beyond just determining your income tier. It also allows users to compare their income tier distribution with U.S. adults who share similar demographic characteristics, such as education level, age, race or ethnicity, and marital status. This feature provides a richer understanding of income distribution by showing how different demographic groups are represented across the income tiers. While it doesn’t recalculate your income tier based on demographics, it offers valuable context by showing how people similar to you are faring economically in the broader U.S. landscape.
Conclusion: Defining Your Place in the U.S. Income Landscape
Understanding “what is upper middle class income” requires considering not just a specific dollar amount, but also the nuances of household size and geographic cost of living. Based on the Pew Research Center’s analysis of 2022 data, upper-income, which encompasses what is often referred to as upper middle class income, starts above approximately $169,800 annually for a three-person household at the national level. This threshold adjusts based on local cost of living, meaning it will be higher in expensive metropolitan areas and lower in more affordable regions.
To gain a personalized understanding of your income tier and how you compare to others, the Pew Research Center’s income calculator offers a valuable tool. By providing insights into income distribution and the factors that shape it, resources like this calculator and the Pew Research Center’s broader body of work contribute to a more informed understanding of economic stratification in the United States.
References:
- Pew Research Center. (2024). The State of the American Middle Class. https://www.pewresearch.org/race-and-ethnicity/2024/05/31/the-state-of-the-american-middle-class/
- Pew Research Center Topic Page: Middle Class. https://www.pewresearch.org/topic/economy-work/income-wealth-poverty/middle-class/
- U.S. Census Bureau. (2023). Average Household Size. https://www.census.gov/data/tables/time-series/demo/families/households.html
- U.S. Office of Management and Budget. (2023). OMB Bulletin 23-01. https://www.whitehouse.gov/wp-content/uploads/2023/07/OMB-Bulletin-23-01.pdf
- Bureau of Economic Analysis. (2022). Regional Price Parities by State and Metro Area. https://www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area
- Pew Research Center. (2016). Methodology for Income Tiers. https://www.pewresearch.org/social-trends/2016/05/11/methodology-4/
