Are you curious about where your household income stands in the United States? According to a recent analysis by the Pew Research Center, about 52% of U.S. adults were in middle-income households in 2022. This means understanding income tiers can offer valuable insights into your financial position relative to others. Roughly 28% of adults were categorized as lower-income, while 19% fell into the upper-income bracket.
To help you understand where you fit, and to provide context for how your salary compares, the Pew Research Center offers an interactive income calculator. This tool allows you to see how your household income stacks up against:
- Other adults in your metropolitan area
- U.S. adults overall
- U.S. adults with similar demographics (education, age, race, marital status)
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© PEW RESEARCH CENTER
This analysis reveals significant variations in income distribution across different metropolitan areas in the US. For example, 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, lower-income households vary from 16% in Bismarck, North Dakota, to 46% in Laredo, Texas. Upper-income households show the most dramatic difference, from just 8% in Muskegon-Norton Shores, Michigan, to a substantial 41% in San Jose-Sunnyvale-Santa Clara, California.
Understanding How the Income Calculator Works
To provide an accurate salary comparison, the income calculator adjusts your household income based on the size of your household. Households smaller than the average size receive an upward income adjustment, while larger households receive a downward adjustment. This adjustment standardizes income to be equivalent to that of a three-person household, mirroring the average U.S. household size of approximately 2.5 people in 2023.
It’s important to note that the Pew Research Center prioritizes your privacy; they do not store or share any of the personal information you input into the calculator.
The calculator uses your size-adjusted household income and the cost of living in your specific area to determine your income tier. In 2022, the national income ranges for a three-person household were defined as follows:
- Middle-income: Incomes ranging from approximately $56,600 to $169,800.
- Lower-income: Incomes less than $56,600.
- Upper-income: Incomes greater than $169,800.
These figures are adjusted to reflect the cost of living in different metropolitan areas and are expressed in 2022 dollars.
Consider Jackson, Tennessee, as an example of cost-of-living adjustment. This area has a price level that is 13.0% lower than the national average. Consequently, a Jackson household only needs an income of around $49,200 to reach the national middle-class threshold of $56,600. Conversely, in the expensive San Francisco-Oakland-Berkeley, California, metropolitan area, where the price level is 17.9% higher than the national average, a household needs an income of about $66,700 to be considered middle class.
The income calculator includes data for 254 of the 387 metropolitan areas defined by the Office of Management and Budget. If you reside outside these areas, the calculator will provide estimates based on your state’s data.
Furthermore, the calculator allows for a deeper salary comparison by considering demographic factors such as education, age, race, and marital status. This feature shows you how adults with similar demographic profiles are distributed across the income tiers nationally, offering a more personalized benchmark for understanding where your salary compares. This demographic comparison does not change your income tier classification but enriches your understanding of income distribution across different groups.
Methodology and Data Source
The Pew Research Center developed this calculator to help individuals understand their position within the U.S. income distribution and compare themselves to others with similar profiles. The data underpinning the calculator is derived from the 2022 American Community Survey (ACS), a comprehensive survey involving approximately 3 million records, representing about 1% of the U.S. population.
In their analysis, “middle-income” is defined as having an adjusted annual household income that is two-thirds to double the national median. Lower-income households earn less than two-thirds of the median, and upper-income households earn more than double the median. These classifications are based on adults aged 18 and older living in households.
In 2022, the national middle-income range for a three-person household was approximately $56,600 to $169,800 annually (in 2022 dollars). The median adjusted household income used to determine this range includes household heads of all ages. These income ranges are adjusted for both the cost of living in various metropolitan areas and household size, ensuring a more accurate and relevant salary comparison. Households in areas with higher living costs or with more than three members require a higher income to reach the middle-income tier, and vice versa. More detailed methodological information can be found in Pew Research Center’s earlier reports.
By using this income calculator and understanding these income tiers, you can gain a clearer picture of how your salary compares within your community, across the nation, and among people with similar demographic characteristics. This knowledge is valuable for personal financial planning and for understanding broader economic trends in the United States.
