Upper Class Is Relative To The Median
Pew defines the upper class as adults whose annual household income is more than double the national median. In 2022, the national median household income is around $75,000, up from $68,000 in 2021.
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.
Check Out: What Is the Median Household Income for the Upper Middle Class in 2024? Now, there are plenty of places you could live where $200,000 in yearly earnings is considered middle class.
This is a rough estimate and doesn't account for family size or location. But, as a quick calculation, those making less than $43,350 make up the lower-income bracket, while those making more than $130,000 make up the upper-income bracket.
Six of the nine cities with average incomes over $300K are in California. Only two are on the East Coast, and one of those is Wellesley. An outlying town not far from Boston, Wellesley claims a mean income of $367,801. Fully 60.7% of the population earns north of $200K per year.
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.
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.
Is $300,000 a Year Considered Rich? Given that the average salary in the U.S. is about 21% of $300,000, yes, many would consider someone earning $300,000 per year by themselves to be rich. However, in most states, you'd need to make substantially more than $300,000 per year to be in the top 1% of earners.
$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.
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).
How much is 6 figures? 6 figures is any salary between $100,000 and $999,999, or a dollar amount with 6 digits. Similarly, a 7-figure salary means you make $1 million to $9,999,999, because there are 7 digits in those numbers; $10 million to $99,999,999 is an 8-figure salary.
Being in the top 20% of earners in California means making at least $171,387 a year. The Golden State, known for its pricey real estate and high cost of living, particularly in cities like San Francisco and Los Angeles, demands a substantial income to be considered wealthy.
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In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
The New York Times has used income quintiles to define class. It has assigned the quintiles from lowest to highest as lower class, lower middle class, middle class, upper middle class, and upper class. These definitions equate class with income, permitting people to move from class to class as their income changes.
How much do you need to earn to be in the top 10% income bracket? A 2022 study by the Economic Policy Institute (EPI) found that the top 10% of earners nationally received an average income of $167,639 in 2021.
According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you'd typically need an income exceeding $153,000 – more than double the national median. Don't Miss: Are you rich?
Upper class in modern societies is the social class composed of people who hold the highest social status, usually are the wealthiest members of class society, and wield the greatest political power.
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.
Here's a look at the five most-costly states for single workers, based on how much money residents would need to earn each year to live comfortably. Massachusetts: $116,022. Hawaii: $113,693. California: $113,651. New York: $111,738.
As of Jan 5, 2025, the average annual pay for a Luxury in the United States is $241,295 a year. Just in case you need a simple salary calculator, that works out to be approximately $116.01 an hour. This is the equivalent of $4,640/week or $20,107/month.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
Even if you're paying a student loan or car loan, a $300,000 annual income means you can likely afford a home priced around $925,000. An income of $300,000 a year is more than four times the U.S. median household income of $74,580, so it gives you a good head start.