BALTIMORE, Mary. (DDN) –A six-figure household income does not always imply wealth—in many circumstances, it just indicates that you are middle class.
According to a SmartAsset analysis of 2023 income data from the United States Census Bureau, the highest limit of what constitutes middle class for households exceeds $100,000 in every state.
The analysis, which analyzed data from all 50 states, is based on Pew Research’s definition of middle class: two-thirds to twice the median household income.
Massachusetts has the highest barrier for middle-class earnings, surpassing New Jersey in last year’s rankings. A household there must earn between $66,565 and $199,716 to be deemed middle class, with the maximum limit rising by roughly $11,000 since the last report.
A six-figure salary does not go as far as it used to.
Even as more households make six-figure salaries, many middle-class workers are feeling the pinch. While inflation-adjusted incomes have increased since 2022, these increases have been substantially offset by rising prices since the beginning of the Covid-19 pandemic in 2020.
Housing and food, in particular, have gotten increasingly expensive. Home prices jumped 52% between January 2020 and December 2024, according to the Case-Shiller U.S. National Home Price Index, while food prices increased 30%, according to Consumer Price Index statistics. During the same period, total inflation increased by 25%.
See what constitutes the Middle-Class in the state of Maryland:
- Low End of Middle-Class in Maryland: $65,779
- High End of Middle-Class in Maryland: $197,356
- Median Household Income in Maryland: $98,678
Conclusion
Rising costs help explain why, according to the National True Cost of Living Coalition’s 2024 study, two-thirds of middle-class Americans are struggling financially and do not expect their condition to improve.
Since then, year-over-year inflation has been at 3%, still above the Federal Reserve’s 2% objective but considerably below its June 2022 top of 9.1%. Although price rises have moderated, the cumulative effect of recent years has reduced many Americans’ purchasing power. As a result, a six-figure income may no longer be sufficient.
Reference: The salary you need to be considered middle class in every U.S. state
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