Middle class is defined as income that is two-thirds to double the national median income, or $47,189 and $141,568. By that definition, $100,000 is considered middle class. Keep in mind that those figures are for the nation. Each state has a different range of numbers to be considered middle class.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes less than $56,600, and upper-income households had incomes greater than $169,800.
13% of American workers aged 15 and above made more than 100k in 2021. The annual income of over 34% of American households exceeds $100,000.
The answer is yes. There's a city in every state where that much money allows for comfortable living. GOBankingRates analyzed data from several sources, including AreaVibes, Sperling's Best Places and the U.S. Bureau of Labor Statistics, to compile the best places to live on a $100,000 salary in each state.
For a single individual, $100,000 would actually put you in the upper-income level in most places. For household sizes between two and four, $100,000 a year would put you squarely in the middle class.
More than half (52%) of Americans say they would need at least $100,000 a year to feel financially comfortable, with 26% saying they would need a salary in the range of $100,000 to $149,000 per year, according to a 2023 CNBC Your Money survey conducted by SurveyMonkey.
For the purposes of this article, those with an income in the bottom 20 percentile will be identified as lower class, followed by lower-middle class (up to 40th percentile), middle class (up to 60th percentile), upper-middle class (up to 80th percentile) with the remainder considered upper class.
$520,000. That's how much income Americans think they would need, on average, to feel rich, according to Bankrate's Financial Freedom Survey published in July. That salary would put you comfortably among the top 2% of American earners, according to Census data.
69% of millionaires did not average $100,000 or more in household income per year, and (get this) one-third of millionaires NEVER had a six-figure household income in their entire careers.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Is Earning $100,000 Considered Rich? Earning $100,000 is not considered rich either. You are considered middle class to lower middle class in expensive coastal cities. $100,000 is considered upper middle class in lower cost areas of the country.
On a salary of $100,000 per year, as long as you have minimal debt, you can afford a house priced at around $311,000 with a monthly payment of $2,333. This number assumes a 6.5% interest rate and a down payment of around $30,000. The 28/36 rule is often used as a guide when deciding how much house you can afford.
Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.
A $100,000 salary is considered good in most parts of the country, and can cover typical expenses, pay down debt, build savings, and allow for entertainment and hobbies. According to the U.S. Census, only 15.3% of American households make more than $100,000 annually.
“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.
According to a 2024 study from SmartAsset, you need $787,712 to be in the top 1% of earners nationwide. Based on that figure, an annual income of roughly $800,000 or more would make you rich.
Middle class is commonly defined as earning between two-thirds and double the household median income. That means on a national level, the middle class includes households earning between $53,740 and $161,220 a year.
The specific income amount for classification as a “high-income taxpayer” can vary by rule and change with inflation. However, the IRS's traditional definition of high income is taxpayers earning over $200,000. Therefore, if that is you now or in the future, it's important to consider the following rules come tax time.
Earning more than $100,000 per year would put you well ahead of the median American household, which brings in $74,784 as of 2021. Assuming you're an individual without dependents, that salary would qualify you as upper class, according to three different definitions (Brookings, Urban Institute and Pew Research).
According to PYMNTS Intelligence, 62% of U.S. consumers now live paycheck to paycheck, and that includes 48% of consumers earning more than $100,000 annually.
Meet the HENRYs: The Six-Figure Earners Who Don't Feel Rich
More is what the people you work for want you to want--it creates more production, more time in the office, and more efficiencies, but pausing to figure out if you need more leads to what you really want: freedom.