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
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.
What income is middle class vs upper class? ›
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. Upper class: The top 20% of earners, with household incomes of $149,132 or more.
What are the 5 income classes? ›
Where you rank by income
- Lower class: less than or equal to $30,000.
- Lower-middle class: $30,001 – $58,020.
- Middle class: $58,021 – $94,000.
- Upper-middle class: $94,001 – $153,000.
- Upper class: greater than $153,000.
lower-income households had incomes less than $48,500; upper-income households had incomes greater than $145,500; middle-income households fell into a range between those two numbers.
What is counted as upper class? ›
upper class | Business English
a social group consisting of the people who have the highest social rank and who are usually rich: The upper classes usually send their children to private schools. Compare. lower-class.
What salary is upper class? ›
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.
What is the upper class income? ›
In 2020, according to Pew Research Center analysis, the median for upper income households was around $220,000 and the median for middle income households was slightly above $90,000.
What's the middle class salary? ›
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $65,000 in 2021, according to the U.S. Census Bureau. 21 Using Pew's yardstick, middle income is made up of people who make between $43,350 and $130,000.
What is considered top 5 income? ›
What are the annual wages of top earners?
| Bracket | Average annual wges |
|---|
| Top 0.1% | $3,212,486 |
| Top 1% | $823,763 |
| Top 5% | $342,987 |
| Top 10% | $173,176 |
Mar 21, 2024
Upper Class Salary
| Annual Salary | Hourly Wage |
|---|
| Top Earners | $86,000 | $41 |
| 75th Percentile | $68,000 | $33 |
| Average | $59,699 | $29 |
| 25th Percentile | $39,000 | $19 |
The report, which looked at the cost of living compared to salaries in different cities across the U.S. revealed that in certain U.S. cities, making $150,000 or less can be considered "lower-middle class."
What makes you upper middle class? ›
Upper middle class might mean earning 15-50% above the median with a comfortable financial cushion, while the upper class generally refers to the top 1-3% earners with substantial wealth and investment-derived income,” said Jeff Rose, CFP and founder of Good Financial Cents.
Are doctors middle class? ›
The lower middle class is often made up of less educated people with lower incomes, such as managers, small business owners, teachers, and secretaries. The upper middle class is often made up of highly educated business and professional people with high incomes, such as doctors, lawyers, stockbrokers, and CEOs.
Can you become upper class? ›
Members of the upper-class were once members of the middle or lower class. They joined the upper class either through their own effort or through the efforts of their parents. This is why I know that you can make the transition today if you choose to. However, only a few people do this in reality.
What are upper class jobs? ›
Top 100 high-paying jobs
- Cardiologist. National average salary: $351,827 per year.
- Anesthesiologist. National average salary: $326,296 per year.
- Orthodontist. National average salary: $264,850 per year.
- Psychiatrist. National average salary: $224,577 per year.
- Surgeon. ...
- Periodontist. ...
- Physician. ...
- Dentist.
Lower middle-income economies are those with a GNI per capita between $1,136 and $4,465; upper middle-income economies are those with a GNI per capita between $4,466 and $13,845; high-income economies are those with a GNI per capita of $13,846 or more, according to the World Bank Country and Lending Groups.
What class is 150k a year? ›
"In America's most expensive cities, the bar has definitely been raised to be considered 'middle class,'" GOBankingRates lead content data researcher Andrew Murray told Fox News Digital. "To escape the lower middle class, you'll need to earn as much as $150,000, which is substantially higher than what it used to be."
Are millionaires upper middle 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.
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.
