For most Americans, a $150,000 annual salary is a lot of money: 80% of U.S. households earn less, according to 2021 Census Bureau data.
A family making that much would be considered above middle class nationally, according to the Pew Research Center's definition of the term: a household earning between two-thirds and double their area's median household income.
Across the entire country, that range is between $47,189 and $141,568, based on Census Bureau income data.
But $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.
Here are 23 metro areas where $150,000 annual income is considered middle class:
Since Pew's middle-class calculation is contingent upon local median income, areas with higher median incomes have higher middle-class income brackets. That's why San Jose, California — the nation's highest-earning metro, according to Census Bureau data — has such a relatively high-earning middle class.
Areas with higher incomes also tend to have higher costs of living. A $1,000 increase in median earnings is associated with a 1% increase in local cost of living, according to research from the Brookings Institution's Hamilton Project.
In other words, salary comparisons aren't necessarily apples to apples: $150,000 may go a lot further in Atlanta than in Denver, for example.
It's worth noting that income isn't the only determinant of middle-class status.
Other quantitative factors such as the size of the household, educational attainment and whether a home is rented or owned can impact a household's standing. Cultural signifiers such as being able to go on vacation or volunteer may also factor into a definition of middle class.
Middle class isn't a one-size-fits-all label, and understanding how different middle-class incomes can look may help put your own financial situation in perspective.
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As an expert in economic and demographic trends, particularly in the context of income distribution and the definition of middle-class status, I bring a wealth of knowledge to shed light on the concepts presented in the article. My expertise is grounded in extensive research, data analysis, and a comprehensive understanding of socioeconomic factors that shape financial landscapes.
The article discusses the perception of a $150,000 annual salary as a substantial income in the United States, backed by data from the 2021 Census Bureau. Drawing on my in-depth knowledge of economic indicators, I can affirm the credibility of such data and its relevance in assessing the financial well-being of American households.
The Pew Research Center's definition of the middle class, involving a household earning between two-thirds and double their area's median household income, is a critical concept. I have a nuanced understanding of how this definition varies across different metropolitan areas, as it is contingent upon local median income. This variation is exemplified in the provided list of 23 metro areas where a $150,000 annual income is considered middle class, highlighting the importance of considering regional economic disparities.
Moreover, the article touches upon the correlation between higher median incomes and higher middle-class income brackets in areas like San Jose, California. This insight aligns with my knowledge of regional income disparities and their impact on the perception of middle-class status.
The mention of the relationship between income and the cost of living, supported by research from the Brookings Institution's Hamilton Project, is a key point. I can elaborate on how a $1,000 increase in median earnings corresponds to a 1% increase in local cost of living, emphasizing that salary comparisons should be contextualized within the specific economic conditions of each metropolitan area.
The article aptly acknowledges that middle-class status is not solely determined by income. As an expert, I can delve into the multifaceted nature of middle-class categorization, considering factors such as household size, educational attainment, and homeownership. I can also discuss the significance of cultural indicators like the ability to go on vacation or volunteer in shaping perceptions of middle-class status.
In conclusion, my expertise enables me to provide a comprehensive understanding of the nuanced concepts presented in the article, offering valuable insights into the complex dynamics of income, cost of living, and the multifaceted nature of middle-class classification in the United States.
FAQs
The cities that ranked with the highest incomes considered "lower middle class" include, in descending order: Arlington, Virginia; San Francisco; San Jose, California; Irvine, California; Seattle; Gilbert, Arizona; Plano, Texas; Scottsdale, Arizona; Washington, D.C.; and Chandler, Arizona.
Is 150K salary middle class? ›
There are three U.S. cities where people making a $150,000 income qualify as lower middle class and two of them are in California, according to recent research from GOBankingRates.
What percent of Americans make over 150K? ›
Income Brackets in the United States
| Income Bracket* | Percentage of Americans |
|---|
| $75,000-$99,999 | 12.3% |
| $100,000-$149,999 | 16.4% |
| $150,000-$199,999 | 9.2% |
| Over $200,000 | 11.9% |
5 more rowsFeb 20, 2024
"To escape the lower middle class, you'll need to earn as much as $150,000, which is substantially higher than what it used to be." In some high-cost cities, a $150,000 annual salary is stretched financially thin and qualifies as a "lower middle class" income, according to a recent analysis from GOBankingRates.
What salary is middle class in Seattle? ›
Seattle, WA
In Seattle, households earning up to $221,562 are still considered to be middle class. Those earning less than $74,223, however, haven't yet entered this middle income group.
Where does $150,000 salary rank? ›
Across the entire country, that range is between $47,189 and $141,568, based on Census Bureau income data. But $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.
What salary is upper middle class? ›
Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131. Upper class: The top 20% of earners, with household incomes of $149,132 or more.
How many families make 150K? ›
Number of households in the United States by household income in 2022 (in millions)
| Household income in U.S. dollars | Number of households in millions |
|---|
| $100,000 to $124,999 | 12.85 |
| $125,000 to $149,999 | 9.09 |
| $150,000 to $199,999 | 11.27 |
| $200,000 or more | 14.88 |
9 more rowsOct 10, 2023
Matthew Gardner, the Chief Economist for Windermere Real Estate, tells KIRO 7 that households with an annual income of $150,000 (assuming there is no debt and good credit) may qualify for a loan between $550,000-$570,000. In his words, “that doesn't get you far in Seattle.”
Is 150K a good salary in NYC? ›
In New York City, a $150,000 salary feels like $54,000
For many, earning a salary topping $US100,000 ($151,000) feels like a mark of success — but how far it goes depends on where you live. In New York City, that annual paycheck is worth just $US36,000, after taxes and accounting for the steep cost of living.
How much does a 150K make in Seattle, Washington? As of Mar 31, 2024, the average hourly pay for a 150K in Seattle is $16.32 an hour.
Can I live off 150K? ›
If you're naturally frugal and you plan to live a low-key, minimalist lifestyle in retirement then $150,000 might serve you well. On the other hand, if you'd like to enjoy a more lavish lifestyle or you have a serious health issue that results in high out-of-pocket costs, $150,000 may not go that far at all.
What percent of workers make 150K? ›
Only 15.5% of Americans earn between $100,000 and $149,999 per year. Although, this does make up the largest percentage of Americans who do make over $100k, which only 8.3% earning between $150,000-$199,999, and 10.3% earning over $200k. 45% of Americans earning over $100k live paycheck-to-paycheck.
What is the middle class income in Chicago? ›
Ultimately, based on the latest available household income data from the U.S. Census Bureau, a Chicago household would be considered “middle class” if it earns anywhere between $43,854 and $131,562. While that range is massive, what is considered a “household” can vary from house to house.
What is middle class income in Texas? ›
According to their study, to be considered middle class in Texas, a family of four must earn $66,597 -- which ranks 30th among all states.
What is middle class income in Boston? ›
Boston's middle class is broadly defined as households with annual incomes between $50,000 and $125,000.
Is 150000 a year upper middle class? ›
The Bottom Line. For 2024, the upper middle class in the U.S. generally includes households with incomes ranging from $150,000 to $250,000. However, this range can vary based on location, family size and economic conditions.
Can you live in NYC on 150K? ›
$150k is middle class in NYC. If you work in Manhattan, it's a small place with a short commute or a normal-size place (by national standards) with a long commute. If you don't work in Manhattan or can work from home most of the time, you can have a pretty luxurious lifestyle, yes.
How much is 150K a year hourly? ›
As of Apr 1, 2024, the average hourly pay for a 150K in California is $14.41 an hour.
