Having a six-figure household income does not necessarily mean you are rich, but rather places you in the middle class category in many cases. A recent analysis by SmartAsset using 2023 income data from the U.S. Census Bureau found that every U.S. state has an upper bound for middle-class households that exceeds $100,000. This analysis is based on Pew Research’s definition of middle class as two-thirds to double the median household income.
Inflation-adjusted wages have risen since 2022, but the increasing costs since the start of the Covid-19 pandemic have offset these gains. Rising housing and food prices, as well as overall inflation, have made it challenging for many middle-class Americans to make ends meet. As a result, a six-figure income may not go as far as it once did.
The report also highlights the thresholds for middle-class salaries in each state, with Massachusetts having the highest upper boundary for middle-class salaries. For example, in Alabama, a household needs to earn between $41,471 and $124,424 to be considered middle class, while in California, the range is between $63,674 and $191,042.
Overall, the analysis shows that the cost of living has increased significantly in recent years, impacting the financial well-being of many middle-class Americans despite earning six-figure incomes.
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