Household income in the United States

Household income is a measure commonly used by the United States government and private institutions, that counts the income of all residents over the age of 18 in each household, including not only all wages and salaries, but such items as unemployment insurance, disability payments, child support

Child support

In family law and public policy, child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other relationship...

payments (not removing child support from wages and salaried yet counting it as overall income actually results in this money counting toward two households, artificially inflating the income between the two households), regular rental receipts, as well as any personal business, investment, or other kinds of income received routinely. The residents of the household do not have to be related to the head of the household for their earnings to be considered part of the household's income. As households tend to share a similar economic context, the use of household income remains among the most widely accepted measures of income. That the size of a household is not commonly taken into account in such measures may distort any analysis of fluctuations within or among the household income categories, and may render direct comparisons between quintiles difficult or even impossible.

In 2006, the "real" (adjusted for inflation) median

Median

In probability theory and statistics, a median is described as the numerical value separating the higher half of a sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to...

annual household income rose 1.3% to $50,233.00 according to the Census Bureau

United States Census Bureau

The United States Census Bureau is the government agency that is responsible for the United States Census. It also gathers other national demographic and economic data...

. The real median earnings of men who worked full time, year-round climbed between 2006 and 2007, from $43,460 to $45,113 (about 3.6 time minimum wage in 2006 to 3.7 time minimum wage in 2007). For women, the corresponding increase was from $33,437 to $35,102 (2.8 and 2.9 times minimum wage respectively). The median income per household member (including all working and non-working members above the age of 14) was $26,036 in 2006. In 2006, there were approximately 116,011,000 households in the United States. 1.93% of all households had annual incomes exceeding $250,000. 12.3% fell below the federal poverty threshold

Poverty in the United States

Poverty is defined as the state of one who lacks a usual or socially acceptable amount of money or material possessions. According to the U.S. Census Bureau data released Tuesday September 13th, 2011, the nation's poverty rate rose to 15.1% in 2010, up from 14.3% in 2009 and to its highest level...

and the bottom 20% earned less than $19,178. The aggregate income distribution is highly concentrated towards the top, with the top 6.37% earning roughly one third of all income, and those with upper-middle incomes controlling a large, though declining, share of the total earned income. Income inequality in the United States

Income inequality in the United States

Income inequality in the United States of America refers to the extent to which income is distributed in an uneven manner in the US. Data from the United States Department of Commerce, CBO, and Internal Revenue Service indicate that income inequality among households has been increasing...

, which had decreased slowly after World War II until 1970, began to increase in the 1970s until reaching a peak in 2006. It declined a little in 2007. Households in the top quintile (i.e., top 20%), 77% of which had two or more income earners, had incomes exceeding $91,705. Households in the mid quintile, with a mean of approximately one income earner per household had incomes between $36,000 and $57,657. Households in the lowest quintile had incomes less than $19,178 and the majority had no income earner.

The 2006 economic survey also found that households in the top two income quintiles, those with an annual household income exceeding $60,000, had a median

Median

of two income earners while those in the lower quintiles (2nd and middle quintile) had median of only one income earner per household. Overall, the United States followed the trend of other developed nations

Developed country

A developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...

with a relatively large population of relatively affluent households

Affluence in the United States

Affluence in the United States refers to an individual's or household's state of being in an economically favorable position in contrast to a given reference group...

outnumbering the poor. Among those in between the extremes of the income strata are a large number of households with moderately high middle class incomes and an even larger number of households with moderately low incomes. While the median household income has increased 30% since 1990, it has increased only slightly when considering inflation. In 1990, the median household income was $30,056 or $44,603 in 2003 dollars. While personal income has remained relatively stagnant over the past few decades, household income has risen due to the rising percentage of households with two or more income earners. Between 1999 and 2004 household income stagnated showing a slight increase since 2004. According to the Bureau of Economic Analysis, per capita income has increased every year for the past 10 years, with an annual average of 5.2% gains for the past 4 years.
The recently released US Income Mobility Study showed economic growth resulted in rising incomes for most taxpayers over the period from 1996 to 2005. Median incomes of all taxpayers increased by 24 percent after adjusting for inflation. The real incomes of two-thirds of all taxpayers increased over this period. Income mobility of individuals was considerable in the U.S. economy during the 1996 through 2005 period with roughly half of taxpayers who began in the bottom quintile moving up to a higher income group within 10 years. In addition, the median incomes of those initially in the lower income groups increased more than the median incomes of those initially in the higher income groups.

Household income

The 2003 Median Income of US households was $45,018 per annum.

Income range	Households (thousands)	Percent	Percentile	Mean number of earners	Mean household size
$0 to $25,000 (28.22%)				0.6	1.9
Under $2,500	2,566	2.26%	0	0.23	1.97
$2,500 to $4,999	1,389	1.22%	2.26%	0.52	2.04
$5,000 to $7,499	2,490	2.20%	3.48%	0.39	1.76
$7,500 to $9,999	3,360	2.96%	5.68%	0.33	1.66
$10,000 to $12,499	4,013	3.54%	8.64%	0.46	1.71
$12,500 to $14,999	3,543	3.13%	12.18%	0.50	1.84
$15,000 to $17,499	3,760	3.32%	15.31%	0.67	1.99
$17,500 to $19,999	3,438	3.03%	18.63%	0.73	2.10
$20,000 to $22,499	4,061	3.58%	21.66%	0.84	2.11
$22,500 to $24,999	3,375	2.98%	25.24%	0.79	2.14
$25,000 to $50,000 (26.65%)				1	2.5
$25,000 to $27,499	3,938	3.48%	28.22%	0.93	2.21
$27,500 to $29,999	2,889	2.55%	31.70%	1.01	2.30
$30,000 to $32,499	3,921	3.46%	34.25%	1.12	2.38
$32,500 to $34,999	2,727	2.41%	37.71%	1.17	2.39
$35,000 to $37,499	3,360	2.96%	40.12%	1.22	2.36
$37,500 to $39,999	2,633	2.32%	43.08%	1.25	2.49
$40,000 to $42,499	3,378	2.98%	45.40%	1.31	2.46
$42,500 to $44,999	2,294	2.02%	48.38%	1.38	2.60
National Median	$44,389		50.00%	1.35	2.57
$45,000 to $47,499	2,700	2.38%	50.40%	1.39	2.60
$47,500 to $49,999	2,371	2.09%	52.78%	1.49	2.62
$50,000 to $75,000 (18.27%)				2	3
$50,000 to $52,499	3,071	2.71%	54.87%	1.46	2.60
$52,500 to $54,999	2,006	1.77%	57.58%	1.58	2.72
$55,000 to $57,499	2,420	2.13%	59.35%	1.61	2.75
$57,500 to $59,999	1,786	1.57%	61.48%	1.70	2.87
$60,000 to $62,499	2,566	2.26%	63.05%	1.63	2.82
$62,500 to $64,999	1,774	1.56%	65.31%	1.79	2.89
$65,000 to $67,499	2,101	1.85%	66.87%	1.81	2.93
$67,500 to $69,999	1,637	1.44%	68.72%	1.74	2.80
$70,000 to $72,499	1,978	1.74%	70.16%	1.77	2.88
$72,500 to $74,999	1,413	1.24%	71.90%	1.82	3.00
$75,000 to $100,000 (10.93%)				2	3
$75,000 to $77,499	1,802	1.59%	73.14%	1.82	2.95
$77,500 to $79,999	1,264	1.11%	74.73%	1.98	3.04
$80,000 to $82,499	1,673	1.47%	75.84%	1.89	3.01
$82,500 to $84,999	1,219	1.07%	77.31%	1.97	3.10
$85,000 to $87,499	1,418	1.25%	78.38%	1.94	3.00
$87,500 to $89,999	984	0.86%	79.63%	1.98	3.03
$90,000 to $92,499	1,282	1.13%	80.49%	1.95	3.03
$92,500 to $94,999	917	0.81%	81.62%	2.17	3.25
$95,000 to $97,499	1,023	0.90%	82.43%	2.06	3.29
$97,500 to $99,999	846	0.74%	83.33%	2.12	3.33
$100,000 or more (15.93%)				2	3
$100,000 to $149,999	11,940	9.89%	84.07%	ca. 2	ca. 3
$150,000 to $199,999	3,595	3.17%	93.96%
$200,000 to $249,999	1,325	1.37%	97.13%
$250,000 and above	1,699	1.50%	98.50%

SOURCE: US Census Bureau, 2005

Quintiles

Households are often divided into quintiles according to their gross income. Each quintile represents 20%, or one fifth, of all households.

Household type is strongly correlated with household income. Married couples are disproportionately represented in the upper two quintiles, compared to the general population of households. Cross-referencing shows that this is likely due to the presence of multiple income earners in these families. Non-family households (individuals) are disproportionately represented in the lower two quintiles. Households headed by single males are disproportionately found in the middle three quintiles; single females head households concentrated in the bottom three quintiles.

The highest income households are almost ten times as likely to own their homes rather than rent, but in the lowest quintile, the ratio of owners to renters is nearly one to one.

The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

has used the quintiles to define class. It has assigned the quintiles from lowest to highest as bottom fifth, lower middle

Lower middle class

In developed nations across the world, the lower middle class is a sub-division of the greater middle class. Universally the term refers to the group of middle class households or individuals who have not attained the status of the upper middle class associated with the higher realms of the middle...

, middle

Middle class

The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....

, upper middle

Upper middle class

The upper middle class is a sociological concept referring to the social group constituted by higher-status members of the middle class. This is in contrast to the term "lower middle class", which is used for the group at the opposite end of the middle class stratum, and to the broader term "middle...

, and top fifth

Upper class

In social science, the "upper class" is the group of people at the top of a social hierarchy. Members of an upper class may have great power over the allocation of resources and governmental policy in their area.- Historical meaning :...

Data	All households	Lowest fifth	Second fifth	Middle fifth	Fourth fifth	Highest fifth	Top 5%
Households (in 1000s)	113,146	22,629	22,629	22,629	22,629	22,629	5,695
Lower limit	$0	$0	$18,500	$34,738	$55,331	$88,030	$157,176
Median number of income earners	1	0	1	1	2	2	2
Tenure
Owner occupied	62.4%	49.0%	58.8%	68.9%	80.5%	90.0%	92.8%
Renter occupied	29.2%	48.3%	39.7%	29.9%	18.7%	9.6%	6.9%
Type of household
Non-family households	31.93%	58.92%	40.02%	29.96%	19.12%	11.64%	9.36%
Family households	68.06%	41.06%	59.97%	70.04%	80.87%	88.35%	90.61%
Breakdown of family households
Married couple families	51.35%	19.03%	38.89%	51.00%	67.05%	80.08%	85.59%
Single-male family	4.32%	3.08%	4.64%	5.69%	4.89%	3.30%	2.47%
Single-female family	12.38%	18.94%	16.43%	13.35%	8.93%	4.24%	2.54%

SOURCE: US Census Bureau, 2004

Race

Despite advances minorities have made to exit poverty, there is still an uneven racial distribution among the income quintiles. While White Americans made up roughly 75.1% of all persons in 2000, 87.93% of all households in the top 5% were headed by a person who identified as being White alone. Only 4.75% of all household in the top 5% were headed by someone who identified him or herself as being Hispanic or Latino of any race, versus 12.5% of persons identifying themselves as Hispanic or Latino in the general population. Overall, 86.01% of all households in the top two quintiles with upper-middle range incomes of over $55,331 were headed by a head of household who identified him or herself as White alone, while only 7.21% were being headed by someone who identified as being Hispanic and 7.37% by someone who identified as being African American or Black. Overall, households headed by Hispanics and African Americans were underrepresented in the top two quintiles and overrepresented in the bottom two quintiles. Households headed by persons who identified as being Asian alone, on the other hand, were overrepresented among the top two quintiles. In the top five percent the percentage of Asians was nearly twice as high as the percentage of Asians among the general population. Whites were relatively even distributed throughout the quintiles only being underrepresented in the lowest quintile and slightly overrepresented in the top quintile and the top five percent.

Race		All households	Lowest fifth	Second fifth	Middle fifth	Fourth fifth	Highest fifth	Top 5%
White alone	Number in 1000s	92,702	16,940	18,424	18,978	19,215	19,721	5,029
White alone	Percentage	81.93%	74.87%	81.42%	83.87%	84.92%	87.16%	87.93%
Asian alone	Number in 1000s	4,140	624	593	786	871	1,265	366
Asian alone	Percentage	3.65%	2.76%	2.26%	3.47%	3.84%	5.59%	6.46%
Black or African American	Number in 1000s	13,792	4,474	3,339	2,637	2,053	1,287	236
Black or African American	Percentage	12.19%	19.77%	14.75%	11.65%	9.07%	5.69%	4.17%
Hispanic or Latino (of any race)	Number in 1000s	12,838	3,023	3,130	2,863	1,931	1,204	269
Hispanic or Latino (of any race)	Percentage	11.33%	13.56%	13.83%	12.20%	8.53%	5.89%	4.75%

SOURCE: US Census Bureau, 2004

Education and gender

Household income as well as per capita income in the United States rise significantly as the educational attainment

Educational attainment in the United States

The educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...

increases. In 2005 graduates with a Master's in Business Administration (MBA) who accepted job offers were expected to earn a base salary of $88,626. They were also expected to receive an "average signing bonus

Signing bonus

A signing bonus or sign-on bonus is a sum of money paid to a new employee by a company as an incentive to join that company. They are often given as a way of making a compensation package more attractive to the employee, e.g., if the annual salary is lower than he or she desires...

of $17,428." According to the US Census Bureau persons with doctorates

Educational attainment in the United States

in the United States had an average income of roughly $81,400. The average for an advanced degree was $72,824 with men averaging $90,761 and women averaging $50,756 annually. Year-round full-time workers with a professional degree

Educational attainment in the United States

had an average income of $109,600 while those with a Master's degree

Educational attainment in the United States

had an average income of $62,300. Overall, "…[a]verage earnings ranged from $18,900 for high school dropouts

Educational attainment in the United States

to $25,900 for high school graduates

Educational attainment in the United States

, $45,400 for college graduates

Educational attainment in the United States

and $99,300 for workers with professional degrees

Educational attainment in the United States

(M.D.

Doctor of Medicine

Doctor of Medicine is a doctoral degree for physicians. The degree is granted by medical schools...

, D.P.T., D.P.M., D.O., J.D.

Juris Doctor

Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...

, Pharm.D., D.D.S., or D.V.M.).

Considering how education significantly enhances the earnings potential of individuals, it should come as no surprise that individuals with graduate degrees have an average per capita income exceeding the median household income

Median household income

The median household income is commonly used to generate data about geographic areas and divides households into two equal segments with the first half of households earning less than the median household income and the other half earning more...

of married couple families

Census family

In the Canada Census such families consisting of a married couple and children are referred to as Census Families. The US Census Bureau refers to such household structures as "Married couple families." This demographic features the highest median household income in the United States."Census...

among the general population ($63,813). Higher educational attainment

Educational attainment in the United States

did not, however, help close the income gap between the genders as the life-time earnings for a male with a professional degree were roughly forty percent (39.59%) higher than those of a female with a professional degree

Educational attainment in the United States

. The lifetime earnings gap between males and females was the smallest for those individuals holding an Associate degrees

Educational attainment in the United States

with male life-time earnings being 27.77% higher than those of females. While educational attainment

Educational attainment

Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed.The US Census Bureau Glossary defines educational attainment as "the highest level of education completed in terms of the highest degree or the highest level of...

did not help reduce the income inequality between men and women, it did increase the earnings potential of individuals of both sexes, enabling many households with one or more graduate degree

Educational attainment in the United States

householders to enter the top household income quintile.

Household income also increased significantly with the educational attainment

Educational attainment in the United States

of the householder. The US Census Bureau publishes educational attainment

Educational attainment in the United States

and income data for all households with a householder who was aged twenty-five or older. The biggest income difference was between those with some college education and those who had a Bachelor's degree

Bachelor's degree

A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...

, with the latter making $23,874 more annually. Income also increased substantially with increased post-secondary education. While the median household income for a household with a householder having an Associates degree was $51,970, the median household income for householders with a Bachelor's degree or higher was $73,446. Those with doctorates had the second highest median household with a median of $96,830; $18,289 more than that for those at the Master's degree level, but $3,170 lower than the median for households with a professional degree holding householder.

Criteria		Overall	Less than 9th grade	High school drop-out	High school graduate	Some college	Associates degree	Bachelor's degree	Bachelor's degree or more	Master's degree	Professional degree	Doctoral degree
Median individual income	Male, age 25+	$33,517	$15,461	$18,990	$28,763	$35,073	$39,015	$50,916	$55,751	$61,698	$88,530	$73,853
	Female, age 25+	$19,679	$9,296	$10,786	$15,962	$21,007	$24,808	$31,309	$35,125	$41,334	$48,536	$53,003
	Both sexes, age 25+	$32,140	$17,422	$20,321	$26,505	$31,054	$35,009	$43,143	$49,303	$52,390	$82,473	$70,853
Median household income		$45,016	$18,787	$22,718	$36,835	$45,854	$51,970	$68,728	$73,446	$78,541	$100,000	$96,830

SOURCE: US Census Bureau, 2003

The change in median personal and household since 1991 also varied greatly with educational attainment

Educational attainment in the United States

. The following table shows the median household income according to the educational attainment of the householder. All data is in 2003 dollars and only applies to householders whose householder is aged twenty-five or older. The highest and lowest points of the median household income are presented in bold face. Since 2003, median income has continued to rise for the nation as a whole, with the biggest gains going to those with Associate's Degrees, Bachelor's Degree or More, and Master's Degrees. High-school dropouts fared worse with negative growth.

Year	Overall Median	Less than 9th grade	High school drop-out	High school graduate	Some college	Associates degree	Bachelor's degree	Bachelor's degree or more	Master's degree	Professional degree	Doctoral degree
1991	$40,873	$17,414	$23,096	$37,520	$46,296	$52,289	$64,150	$68,845	$72,669	$102,667	$92,614
1993	$40,324	$17,450	$22,523	$35,979	$44,153	$49,622	$64,537	$70,349	$75,645	$109,900	$93,712
1995	$42,235	$18,031	$21,933	$37,609	$44,537	$50,485	$63,357	$69,584	$77,865	$98,302	$95,899
1997	$43,648	$17,762	$22,688	$38,607	$45,734	$51,726	$67,487	$72,338	$77,850	$105,409	$99,699
1999	$46,236	$19,008	$23,977	$39,322	$48,588	$54,282	$70,925	$76,958	$82,097	$110,383	$107,217
2001	$42,900	$18,830	$24,162	$37,468	$47,605	$53,166	$69,796	$75,116	$81,993	$103,918	$96,442
2003	$45,016	$18,787	$22,718	$36,835	$45,854	$56,970	$68,728	$73,446	$78,541	$100,000	$96,830
Average	$43,376	$18,183	$23,013	$37,620	$46,109	$51,934	$66,997	$72,376	$78,094	$104,368	$94,487

SOURCE: US Census Bureau, 2003

Age of householder

Household income in the United States varies substantially with the age of the person who heads the household. Overall, the median household income increased with the age of householder until retirement age when household income started to decline. The highest median household income was found among households headed by working baby-boomers. Households headed by persons between the ages of 45 and 54 had a median household income of $61,111 and a mean household income of $77,634. The median income per member of household for this particular group was $27,924. The highest median income per member of household was among those between the ages of 54 and 64 with $30,544 [The reason this figure is lower than the next group is because Pensions and Social Security add to income while a portion of older individuals also have work-related income.]). The group with the second highest median household income, were households headed by persons between the ages 35 and 44 with a median income of $56,785, followed by those in the age group between 55 and 64 with $50,400. Not surprisingly the lowest income group was composed of those households headed by individuals younger than 24, followed by those headed by persons over the age of 75. Overall, households headed by persons above the age of seventy-five had a median household income of $20,467 with the median household income per member of household being $18,645. These figures support the general assumption that median household income as well as the median income per member of household peaked among those households headed by middle aged persons, increasing with the age of the householder and the size of the household until the householder reaches the age of 64. With retirement income replacing salaries and the size of the household declining, the median household income decreases as well.

Aggregate income distribution

The aggregate income measures the combined income earned by all persons in a particular income group. In 2007, all households in the United States earned roughly $7.723 trillion. One half, 49.98%, of all income in the US was earned by households with an income over $100,000, the top twenty percent. Over one quarter, 28.5%, of all income was earned by the top 8%, those households earning more than $150,000 a year. The top 3.65%, with incomes over $200,000, earned 17.5%. Households with annual incomes from $50,000 to $75,000, 18.2% of households, earned 16.5% of all income. Households with annual incomes from $50,000 to $95,000, 28.1% of households, earned 28.8% of all income. The bottom 10.3% earned 1.06% of all income.

Distribution

Percentiles of net worth
	1989	1992	1995	1998	2001	2004
90–100	205.1	158.5	172.8	206.3	272.7	256.2
75–89.9	74.6	67.0	65.0	78.3	83.7	87.9
50–74.9	52.9	48.1	50.1	54.3	62.7	60.6
25–49.9	36.9	36.4	38.6	39.3	42.1	42.2
0–24.9	21.5	22.9	22.9	23.6	25.6	25.1

Percentiles of gross (pre-tax) income
	1989	1992	1995	1998	2001	2004
90–100	114.7	106.6	99.1	102.4	134.7	143.8
75–89.9	61.2	56.7	52.6	65.8	74.1	77.0
50–74.9	46.3	43.2	43.6	47.0	54.4	52.4
25–49.9	32.3	32.2	35.3	35.3	37.2	37.0
0–24.9	15.3	17.2	17.8	18.5	21.0	20.5

Household income over time

All figures are in 2003 dollars.

Since 1967, the median household income in the United States has risen by 31%, fluctuating several times. The rise in household income is largely the result of an increase in personal income among college graduates, a group that has doubled in size since the 1960s, and women entering the labor force. Today, 42% of all households have two income earners. Household income increased dramatically faster for affluent households with income inequality having increased steadily since the 1970s.

While household income has increased, its growth has been slowed by a decrease in married-couple households who tend to have two earners and, therefore, higher incomes. While the proportion of wives working year-round in married couple households with children has increased from 17% in 1967 to 39% in 1996, the proportion of such households among the general population has decreased. This means that the share the most economically prosperous type of household has been dwindling in the United States.

In 1969, more than 40% of all households consisted of a married couple with children. By 1996 only a rough quarter of US households consisted of married couples with children. As a result of these changing household demographics

Demographics of the United States

As of today's date, the United States has a total resident population of , making it the third most populous country in the world. It is a very urbanized population, with 82% residing in cities and suburbs as of 2008 . This leaves vast expanses of the country nearly uninhabited...

, median household income rose relatively slowly despite an ever-increasing female labor force

Labor force

In economics, a labor force or labour force is a region's combined civilian workforce, including both the employed and unemployed.Normally, the labor force of a country consists of everyone of working age In economics, a labor force or labour force is a region's combined civilian workforce,...

and a considerable increase in the percentage of college graduates

Educational attainment in the United States

.
Overall, the median household income rose from $33,338 in 1967 to an all-time high of $44,922 in 1999, and has since decreased slightly to $43,318. Decreases in household income are visible during each recession

Recession

In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...

, while increases are visible during economic upturns. These fluctuations were felt across the income strata as the incomes of both the 95th and 20th percentile were affected by fluctuations in the economy. Income in the period between 1967 and 1999 grew considerably faster among wealthier households than it did among poorer households. For example the household income for the 80th precentile, the lower threshold for the top quintile, rose from $55,265 in 1967 to $86,867 in 2003, a 57.2% increase. The median household income rose by 30% while the income for the 20th percentile (the lower threshold for the second lowest quintile) rose by only 28% from $14,002 to $17,984. As the majority of households in the top quintile had two income earners, versus zero for the lowest quintile and that the widening gap between the top and lowest quintile may largely be the reflection of changing household demographics including the addition of women to the workforce.

Household demographics are not, however, the cause of the growing gap between the top 5% and the rest of the upper quintile. The top 5% had fewer dual earner households and full-time workers than the top quintile overall. In 2003 a household in the 95th percentile earned 77.2% more than a household in the 80th percentile, compared to 60.5% in 1967, a 27.6% increase in the earnings increase discrepancy between the two groups. Overall the income of the 95th percentile grew 15.2% faster than that of the 80th, 146.8% faster than that of the median and 159.9% faster than that of the 20th percentile.

Households in the top 1% experienced the by far greatest increases in household income. According to economist Janet Yellen

Janet Yellen

Janet Louise Yellen is an American economist and professor, who is currently the Vice Chair of the Board of Governors of the Federal Reserve System...

"the growth [in real income] was heavily concentrated at the very tip of the top, that is, the top 1 percent." A 2006 analysis of IRS income data by economists Emmanuel Saez at the University of California, Berkeley

University of California, Berkeley

The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...

and Thomas Piketty at the Paris School of Economics

Paris School of Economics

The Paris School of Economics , created on 21 December 2006 in Paris, France, is a French economics department. The EEP combines researchers from several institutions, including DELTA and INRA...

showed that the share of income held by the top 1% was as large in 2005 as in 1928. The data revealed that reported income increased by 9% in 2005, with the mean for the top 1% increasing by 14% and that for the bottom 90% dropping slightly by 0.6%.

While per-capita disposable income has increased 469% since 1972, it has only increased moderately when inflation is considered. In 1972, disposable personal income was determined to be $4,129; $19,385 in 2005 dollars. In 2005, disposable personal income was, however, $27,640, a 43% increase. Since the late 1990s, household income has fallen slightly.

The following table shows US household income in 2009 constant (CPI-U-RS adjusted) dollars. The final column shows the average change per year from 1976 to 2009.

Percentile	2009	2006	2003	2000	1997	1994	1991	1988
20th	$20,453	$21,314	$20,974	$22,320	$20,520	$19,215	$19,338	$19,830
50th	$49,777	$51,278	$50,519	$52,301	$49,309	$46,175	$46,269	$47,433
80th	$100,000	$103,226	$101,307	$101,884	$95,273	$89,936	$87,173	$88,146
95th	$180,001	$185,119	$179,740	$180,879	$168,626	$157,172	$148,055	$149,207

Percentile	1985	1982	1979	1976	1973	1970	1967	Per Year
20th	$18,898	$17,927	$19,274	$18,526	$18,973	$18,180	$16,845	.30%
50th	$44,898	$43,048	$45,325	$43,483	NA	NA	NA	.41%
80th	$82,843	$77,683	$79,851	$75,648	$77,723	$72,273	$66,481	.85%
95th	$136,881	$128,232	$129,029	$119,967	$124,921	$114,243	$106,684	1.24%

International comparison

Median household income for other countries is shown in the table below. The data for each country has been converted to US dollars using Purchasing Power Parity

Purchasing power parity

In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...

(obtained from the OECD). Median household income in the United States remains slightly higher than in the UK and Ireland, yet lower than the mean household income in Switzerland. It is important to note that the differences in median household income between US states can be as large as those between the developed nations. The median household income of the UK, for example, is comparable to that of Florida or South Carolina

South Carolina

South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...

, while the mean household income in Switzerland is comparable to median household incomes in New Jersey

New Jersey

New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

or New Hampshire

New Hampshire

New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...

Social class

Household income is one of the most commonly used measures of income

Income in the United States

Income in the United States is measured by the United States Department of Commerce either by household or individual. The differences between household and personal income is considerable since 42% of households, the majority of those in the top two quintiles with incomes exceeding $57,658, now...

and, therefore, also one of the most prominent indicators of social class. Household income and education do not, however, always reflect perceived class status correctly. Sociologist

Sociology

Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...

Dennis Gilbert

Dennis Gilbert is professor and chair of sociology at Hamilton College in Clinton, New York. He holds a Ph.D. from Cornell University and has taught at the Universidad Catlica in Lima, Peru, Cornell University and joined Hamilton college in 1976. He has published a variety of sociology books,...

acknowledges that "... the class structure... does not exactly match the distribution of household income" with "the mismatch [being] greatest in the middle..." (Gilbert, 1998: 92) As social classes commonly overlap, it is not possible to define exact class boundaries. According to Leonard Beeghley a household income of roughly $95,000 would be typical of a dual-earner middle class household while $60,000 would be typical of a dual-earner working class household and $18,000 typical for an impoverished

Poverty in the United States

household. William Thompson and Joseph Hickey see common incomes for the upper class as those exceeding $500,000 with upper middle class incomes ranging from the high 5-figures to most commonly in excess of $100,000. They claim the lower middle class ranges from $35,000 to $75,000; $16,000 to $30,000 for the working class and less than $2,000 for the lower class

American lower class

The concept of a lower class in the United States is used to describe those at or near the lower end of the socio-economic hierarchy. As with all social classes in the United States, the lower class is loosely defined and its boundaries and definitions subject to debate and ambiguous popular...

Income by state

In 2010, the median household income

Median household income

by state ranged from $35,693 in Mississippi

Mississippi

Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...

to $66,334 in Maryland

Maryland

Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...

. California, with the highest median home price

Real estate pricing

Real estate pricing deals with the valuation of real estate and all the standard methods of determining the price of fixed assets apply....

in the nation and home prices that far outpaced incomes, only ranked ninth with a median household income of $61,021. While California's median income was not near enough to afford the average California home or even a starter home, West Virginia, which had one of the nation's lowest median household incomes, also had the nation's lowest median home price.

By Census Bureau Region, of the 15 states with the highest median household income, only Minnesota

Minnesota

Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...

is located in the Mid-West

Midwestern United States

The Midwestern United States is one of the four U.S. geographic regions defined by the United States Census Bureau, providing an official definition of the American Midwest....

, while five are in the Northeast

Northeastern United States

The Northeastern United States is a region of the United States as defined by the United States Census Bureau.-Composition:The region comprises nine states: the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont; and the Mid-Atlantic states of New...

(New Jersey

New Jersey

, Connecticut

Connecticut

Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...

, Massachusetts

Massachusetts

The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

, New Hampshire

New Hampshire

and New York) three are in the South

Southern United States

The Southern United States—commonly referred to as the American South, Dixie, or simply the South—constitutes a large distinctive area in the southeastern and south-central United States...

(Delaware

Delaware

Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...

, Maryland

Maryland

and Virginia

Virginia

The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...

), and the other six (Alaska

Alaska

Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...

, Hawaii, California, Washington, Colorado

Colorado

Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...

and Utah

Utah

Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...

) are in the West

Western United States

.The Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...

.

The southern states

Southern United States

The Southern United States—commonly referred to as the American South, Dixie, or simply the South—constitutes a large distinctive area in the southeastern and south-central United States...

had, on average, the lowest median household income, with nine of the country's fifteen poorest states located in the South. However, most of the poverty in the South is located in rural areas. Metropolitan areas such as Atlanta, Nashville, Charlotte, Raleigh-Durham, Richmond, Birmingham, Dallas, Houston, and Miami are areas within the southern states that have above average income levels. Overall, median household income tended to be the highest in the nation's most urbanized northeastern, upper midwestern and west coast states, while rural areas, mostly in the southern and mountain states, had the lowest median household income.

Median Household Income by State

Rank	State	2009	2008	2007	2004–2006	Cost of Living Index	2009 Data adjusted for COL
1	Maryland Maryland Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...	$69,272	$70,545	$68,080	$62,372	124.81	$55,502
2	New Jersey New Jersey New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...	$68,342	$70,378	$67,035	$64,169	128.47	$53,197
3	Connecticut Connecticut Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...	$67,034	$68,595	$65,967	$59,972	130.22	$51,477
4	Alaska Alaska Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...	$66,953	$68,460	$64,333	$57,639	132.64	$50,477
5	Hawaii Hawaii Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...	$64,098	$67,214	$63,746	$60,681	165.56	$38,716
6	Massachusetts Massachusetts The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...	$64,081	$65,401	$62,365	$56,236	117.8	$54,398
7	New Hampshire New Hampshire New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...	$60,567	$63,731	$62,369	$60,489	116.68	$51,909
8	Virginia Virginia The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...	$59,330	$61,233	$59,562	$55,108	97.66	$60,752
\|District of Columbia Washington, D.C. Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....	$59,290	$57,936	$54,317	$47,221 (2005)	139.92	$42,374
9	California California California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...	$58,931	$61,021	$59,948	$53,770	132.56	$44,456
10	Delaware Delaware Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...	$56,860	$57,989	$54,610	$52,214	102.4	$55,527
11	Washington	$56,548	$58,078	$55,591	$53,439	103.98	$54,384
12	Minnesota Minnesota Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...	$55,616	$57,288	$55,082	$57,363	102.23	$54,403
13	Colorado Colorado Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...	$55,430	$56,993	$55,212	$54,039	102.23	$54,221
14	Utah Utah Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...	$55,117	$56,633	$55,109	$55,179	95.15	$57,926
15	New York New York New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...	$54,659	$56,033	$53,514	$48,201	128.29	$42,606
16	Rhode Island Rhode Island The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...	$54,119	$55,701	$53,568	$52,003	123.25	$43,910
17	Illinois Illinois Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...	$53,966	$56,235	$54,124	$49,280	96.08	$56,168
18	Nevada Nevada Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...	$53,341	$56,361	$55,062	$50,819	101.39	$52,610
19	Wyoming Wyoming Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...	$52,664	$53,207	$51,731	$47,227	98.66	$53,379
20	Vermont Vermont Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...	$51,618	$52,104	$49,907	$51,622	120.38	$42,879
\|United States United States The United States of America is a federal constitutional republic comprising fifty states and a federal district...	$50,221	$52,029	$50,740	$46,242 (2005)
21	Wisconsin Wisconsin Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...	$49,993	$52,094	$50,578	$48,874	96.45	$51,833
22	Pennsylvania Pennsylvania The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...	$49,520	$50,713	$48,576	$47,791	100.67	$49,190
23	Arizona Arizona Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...	$48,745	$50,958	$49,889	$46,729	103.73	$46,992
24	Oregon Oregon Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...	$48,457	$50,169	$48,730	$45,485	110.47	$43,864
25	Texas Texas Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...	$48,259	$50,043	$47,548	$43,425	91.04	$53,009
26	Iowa Iowa Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...	$48,044	$48,980	$47,292	$47,489	93.98	$51,122
27	North Dakota North Dakota North Dakota is a state located in the Midwestern region of the United States of America, along the Canadian border. The state is bordered by Canada to the north, Minnesota to the east, South Dakota to the south and Montana to the west. North Dakota is the 19th-largest state by area in the U.S....	$47,827	$45,685	$43,753	$43,753	95.91	$49,867
28	Kansas Kansas Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...	$47,817	$50,177	$47,451	$44,264	91.31	$52,368
29	Georgia Georgia (U.S. state) Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...	$47,590	$50,861	$49,136	$46,841	92.21	$51,610
30	Nebraska Nebraska Nebraska is a state on the Great Plains of the Midwestern United States. The state's capital is Lincoln and its largest city is Omaha, on the Missouri River....	$47,357	$49,693	$47,085	$48,126	91.09	$51,989
31	Maine Maine Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...	$45,734	$46,581	$45,888	$45,040	116.42	$39,284
32	Indiana Indiana Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...	$45,424	$47,966	$47,448	$44,806	94.19	$48,226
33	Ohio Ohio Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...	$45,395	$47,988	$46,597	$45,837	93.85	$48,370
34	Michigan Michigan Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....	$45,255	$48,591	$47,950	$47,064	95.25	$47,512
35	Missouri Missouri Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...	$45,229	$46,867	$45,114	$44,651	91.66	$49,344
36	South Dakota South Dakota South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over...	$45,043	$46,032	$43,424	$44,624	98.53	$45,715
37	Idaho Idaho Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....	$44,926	$47,576	$46,253	$46,395	93.04	$48,287
38	Florida Florida Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...	$44,736	$47,778	$47,804	$44,448	98.39	$45,468
39	North Carolina North Carolina North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...	$43,674	$46,549	$44,670	$42,061	96.21	$45,394
40	New Mexico New Mexico New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...	$43,028	$43,508	$41,452	$40,827	98.88	$43,515
41	Louisiana Louisiana Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...	$42,492	$43,733	$40,926	$37,943	96.15	$44,193
42	South Carolina South Carolina South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...	$44,625	$43,329	$40,822		98.71	$42,997
43	Montana Montana Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...	$42,322	$43,654	$43,531	$38,629	100	$42,322
44	Tennessee Tennessee Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...	$41,725	$43,614	$42,367	$40,676	89.49	$46,625
45	Oklahoma Oklahoma Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...	$41,664	$42,822	$41,567	$40,001	90.09	$46,247
46	Alabama Alabama Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...	$40,489	$42,666	$40,554	$38,473	92.74	$43,659
47	Kentucky Kentucky The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...	$40,072	$41,538	$40,267	$38,466	89.21	$44,919
48	Arkansas Arkansas Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...	$37,823	$38,815	$38,134	$37,420	90.61	$41,743
49	West Virginia West Virginia West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...	$37,435	$37,989	$37,060	$37,227	94.4	$39,656
50	Mississippi Mississippi Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...	$36,646	$37,790	$36,338	$35,261	92.26	$39,720

	Puerto Rico Puerto Rico Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...	$18,314	$18,401	$17,741	$17,184 (2005)

Median income

The median

Median

income divides households in the US evenly in the middle with half of all household earning more than the median income and half of all households earning less than the median household income. In 2004 the median household income in the United States was $44,389. According to the US Census Bureau, the median is "considerably lower than the average, and provides a more accurate representation." Considering other racial and geographical differences in regards to household income, it should come as no surprise that the median

Median

household income varies with race, size of household and geography

Geography

Geography is the science that studies the lands, features, inhabitants, and phenomena of Earth. A literal translation would be "to describe or write about the Earth". The first person to use the word "geography" was Eratosthenes...

. The state with the highest median household income in the United States as of the US Census Bureau 2005/06 is New Jersey

New Jersey

with $66,752, followed by Maryland

Maryland

, Hawaii and Connecticut

Connecticut

, making the Northeastern United States the wealthiest area by income in the entire country.

Regionally, in 2010, the Northeast

Northeastern United States

reached a median income of $53,283, the West

Western United States

, $53,142, the South

Southern United States

The Southern United States—commonly referred to as the American South, Dixie, or simply the South—constitutes a large distinctive area in the southeastern and south-central United States...

, $45,492, and the Midwest

Midwestern United States

The Midwestern United States is one of the four U.S. geographic regions defined by the United States Census Bureau, providing an official definition of the American Midwest....

, $48,445. Each figure represents a decline from the previous year.

While median household income has a tendency to increase up to four persons per household, it declines thereon after. This indicated that while four person households have larger incomes than those with one, two or three members, households seem to earn progressively less as their size increases beyond four persons. According to the US Census Bureau 2004 Community Survey, two-person households had a median income of $39,755, with $48,957 for three-person households, $54,338 for four-person households, $50,905 for five-person households, $45,435 for six-person households, with seven-or-more-person households having the second lowest median income of only $42,471. In terms of race, Asian-American households had the highest median household income of $57,518, European-American households ranked second with $48,977, Hispanic or Latino

Hispanic

Hispanic is a term that originally denoted a relationship to Hispania, which is to say the Iberian Peninsula: Andorra, Gibraltar, Portugal and Spain. During the Modern Era, Hispanic sometimes takes on a more limited meaning, particularly in the United States, where the term means a person of ...

households ranked third with $34,241. African-American or Black households had the lowest median household income of all races with $30,134.

Mean income

Another common measurement of personal income is the mean household income. Unlike the median household income, which divides all households in two halves, the mean income is the average income earned by American households. In the case of mean income, the income of all households is divided by the number of all households. The mean income is usually more affected by the relatively unequal distribution of income which tilts towards the top. As a result, the mean tends to be higher than the median income, with the top earning households boosting it. Overall, the mean household income in the United States, according to the US Census Bureau 2004 Economic Survey, was $60,528, or $17,210 (39.73%) higher than the median household income.
The US Census Bureau also provides a breakdown by self-identified ethnic groups as follows (as of March 2005):

**Mean Household Income by Ethnicity**
Ethnic Category	Mean Household Income
White alone	$65,317
Black Black people The term black people is used in systems of racial classification for humans of a dark skinned phenotype, relative to other racial groups.Different societies apply different criteria regarding who is classified as "black", and often social variables such as class, socio-economic status also plays a...	$40,685
Hispanic or Latino Hispanic Hispanic is a term that originally denoted a relationship to Hispania, which is to say the Iberian Peninsula: Andorra, Gibraltar, Portugal and Spain. During the Modern Era, Hispanic sometimes takes on a more limited meaning, particularly in the United States, where the term means a person of ...	$45,871
Asian alone	$76,747

External links

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.

Household income

Quintiles

Race

Education and gender

Age of householder

Aggregate income distribution

Distribution

Household income over time

International comparison

Social class

Income by state

Median income

Mean income

See also

External links