A $150,000 annual income is a lot of money for most Americans, however, around 80% of US households earn less, according to 2021 Census Bureau data.
The Income Levels In The US
A family making worth $150,000 that much would be considered above middle class nationally, according to the Pew Research Center. Census Bureau revenue data shows ranging between $47,189 and $141,568 for a household earning between two-thirds and double their area’s median household profits.
Earning $150,000 is still a middle-class income by Pew’s definition in nearly half of the country’s 50 most-populated metropolitan areas, where incomes tend to be high. Since Pew’s middle-class analysis is contingent upon local median income, areas with more elevated median incomes have higher middle-class income brackets.
The Nation’s Highest Earning Metro
San Jose, California considered the nation’s highest-earning metro, according to Census Bureau data has such a relatively high-earning middle class. Areas with more increased incomes also manage to have higher costs of living. An increase worth $1,000 in median earnings is associated with a 1% increase in the local cost of living, according to research from the Brookings Institution’s Hamilton Project.
Furthermore, salary comparisons aren’t necessary. The $150,000 may go a lot further in Atlanta than in Denver, for instance. It’s important to note that not all factors affect whether someone belongs to the middle-class status.
Other quantitative aspects like the size of the household, educational attainment, and whether a home is rented or owned can influence a household’s standing. Cultural signifiers such as being able to go on vacation or volunteer may also factor into a definition of the middle class. The middle class isn’t a one-size-fits-all label, and understanding how different middle-class incomes can look may help put your financial situation in perspective.