A recent analysis of 2023 U.S. Census Bureau data reveals that individuals earning a six-figure salary, once viewed as wealthy, are now finding it difficult to maintain their financial stability amid high living costs and salary deflation. Households earning $100,000 annually are still categorized as “middle-class” across all U.S. states.
The financial benchmark for being considered affluent has shifted significantly. In some states, earning nearly $200,000 annually does not classify an individual as upper-class. This classification is increasingly restricted to the top 1% who accrue substantial wealth daily.
Data from a recent SmartAsset analysis using the 2023 U.S. Census Bureau indicates that households in states like Massachusetts and New Jersey earning $199,000 annually still fall under the middle-class category. Meanwhile, in Mississippi, the state with the lowest median middle-class income in the nation, an income exceeding $108,000 is necessary to be deemed well-off.
The middle-class salary range is notably wide, accounting for about 52% of American workers. This range spans from a low of $36,132 in certain states to a high of $199,716 in others. Despite this, a $100,000 salary is insufficient to qualify as “upper class” in any U.S. state, with many earning within this bracket struggling financially.
Over time, the concept of what constitutes being in the middle-class has changed considerably. Previously, a six-figure income was associated with a lavish lifestyle, including luxury cars and substantial savings. However, such an income now barely suffices for many households, as evidenced by over half of Americans earning above $100,000 living paycheck-to-paycheck in 2022, a 7% increase from the previous year, according to a PYMNTS and LendingClub report from 2023.
There are several contributing factors to the financial pressures faced by six-figure earners, with inflation and changes in salary structures nationwide playing critical roles. Some employees have experienced wage deflation, receiving minimal wage increases regardless of job changes or staying in their current positions, according to data from the Atlanta Fed.
Inflation has also escalated living costs, including significant hikes in commodity prices and a stagnant housing market marked by high costs. While one might expect a middle-class lifestyle to cover basic expenses comfortably, a 2024 survey by Primerica revealed that 67% of such households reported that their incomes were trailing behind the rising cost of living.
The aspiration of achieving the American Dream, characterized by a comfortable lifestyle and financial security, is increasingly unattainable solely through a six-figure salary. Although some states may offer a lower threshold for reaching the upper class, the availability of high-paying job opportunities in these areas is limited. On average, middle-class households across all states earn less than $100,000 annually.
The following list outlines the income needed to exceed the middle-class threshold in each U.S. state:
– Massachusetts: $199,716
– New Jersey: $199,562
– Maryland: $197,356
– New Hampshire: $193,676
– California: $191,042
– Hawaii: $190,644
– Washington: $189,210
– Utah: $186,842
– Colorado: $185,822
– Connecticut: $183,330
– Virginia: $179,862
– Alaska: $173,262
– Minnesota: $170,172
– Rhode Island: $169,944
– New York: $164,190
– Delaware: $162,722
– Vermont: $162,422
– Illinois: $160,612
– Oregon: $160,320
– Arizona: $154,630
– North Dakota: $153,050
– Nevada: $152,728
– Texas: $151,560
– Idaho: $149,884
– Georgia: $149,264
– Wisconsin: $149,262
– Nebraska: $149,180
– Pennsylvania: $147,648
– Maine: $147,466
– Florida: $146,622
– Wyoming: $144,830
– South Dakota: $143,620
– Iowa: $142,866
– Montana: $141,608
– North Carolina: $141,608
– Kansas: $140,666
– Indiana: $138,954
– Michigan: $138,366
– Missouri: $137,090
– South Carolina: $135,608
– Ohio: $135,538
– Tennessee: $135,262
– New Mexico: $124,536
– Alabama: $124,424
– Oklahoma: $124,276
– Kentucky: $122,236
– Arkansas: $117,400
– Louisiana: $116,458
– West Virginia: $111,896
– Mississippi: $108,406
This report was initially published on Fortune.com.
