The share of Americans considered to be middle class is now the smallest it has been in five decades, having steadily contracted since the 1970s. The share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021, according to the Pew Research Center. Are you part of the “shrinking” middle class? You can use the updated calculator from Pew Research Center to find out.
In 2022, 52% of adults lived in middle-income households, 28% were in lower-income households and 19% were in upper-income households. But this varies widely between cities. For example, 42% of adults in San Jose-Sunnyvale-Santa Clara, California, are considered middle class, compared to 66% in Olympia-Lacey-Tumwater, Washington.
Here’s how to determine whether you're considered middle class and how you compare to the rest of the population.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Who is considered to be middle class?
To determine whether or not you’re considered middle class, the calculator from Pew Research Center uses your size-adjusted household income and the cost of living in your area to determine your income tier. Middle-class definitions can vary, but for this calculator, the middle class is defined as households with an income that is two-thirds to double the U.S. median household income.
To use the calculator, you’ll be asked to fill in where you live (including the state and metropolitan area), your total household income before taxes and the number of people in your household. This enables you to see the share of adults in each income tier in your area and the U.S., including which income tier you fall in.
Here's a look at the income calculator, which you can access here.
You’ll also be able to compare yourself to adults similar to you in education, age, race, ethnicity and marital status, if that’s of interest to you.
The calculator takes your household income and adjusts it for the size of your household, which is revised upward for households that are below-average in size and downward for those of above-average size, so each household’s income is made equivalent to the income of a three-person household.
For 2022, middle-class incomes ranged from about $56,600 to $169,800, lower-income households had incomes less than $56,600 and upper-income households had incomes greater than $169,800.
The shrinking middle class
As the share of middle-class households declined, the share of lower- and upper-income households increased. From 1971 to 2023, the share of Americans who lived in lower-income households increased from 27% to 30%, and the share who lived in upper-income households increased from 11% to 19%.
And while household incomes have risen across all income tiers since 1970, the gains for middle- and lower-income households are smaller than gains for upper-income households, creating a larger gap between upper-income households and other households.
The median income of middle-class households increased by 60% between 1970 and 2022, while the median income of upper-income households increased by 78%. The median income of lower-income households grew by only 55%.
Related Content
-
How to Budget for College Expenses Beyond TuitionSome universities waive tuition for families with incomes below a certain threshold. But you'll still need a plan to cover other costs.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Delta’s New Fare Changes Just Made Booking Flights and Earning Miles More ComplicatedHere’s what travelers need to know about Delta’s fare changes before booking their next flight.
-
United Airlines Raises the Bar with New Business Class SuitesDiscover how United's new Polaris Studio suites redefine luxury and comfort on long-haul flights.
-
Walmart Raising Prices Soon — Here’s Which Products Will Cost You More This SummerIf you heard about Walmart raising prices, here are the key details you need to know ahead of your next shopping trip.
-
I'm an Insurance Pro: How Not to Get Dumped by Your Insurance AgentYour insurance agent or broker might show you the door if you do any of these five things. Being a good customer is about more than paying your bill on time.
-
How Capital One Venture X's Travel Perks Make the Fee Worth ItTravel Cards Travel cards, like the Capital One Venture X come with a sizable annual fee. Here are four ways to offset it.
-
Hail Damage Insurance Claims: Is Filing Worth the Cost and Hassle?Before filing a hail damage insurance claim, understand the potential costs, risks and whether it’s worth the effort. Learn when to file and when to pay out of pocket.
