(NEXSTAR) — What does it mean to be “middle class” anymore? The definition can be confusing — and it changes depending on where you live and how many people are in your household.
In a study published in 2022, thePew Research Centerdefined “middle-income” adults as “adults in 2021 with an annual household income that was two-thirds to double the national median income in 2020, after incomes have been adjusted for household size.”
Pew explains that a middle income equals an annual household income of $52,000 to $156,000 for a family of three, based on 2020 dollars. These numbers have not been adjusted for inflation since then.
Adjusted for inflation, using thisCPI inflation calculator, annual household income to be classified as middle class would start around $60,000. And Pew reports that while the middle class has famously decreased significantly over time, it “held steady” in 2021.
So what does it take to be middle class in Chicago?
Ultimately, based on thelatest 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. That’s where the Pew Research calculator comes in.
Let’s say you’re a single-person household. Based on the Pew Researchcalculatorfrom 2020, you would be considered middle class if you make between $29,000 and $86,500 before taxes. If there are four people in your household, you’d need to earn between $58,000 and $173,000 to maintain middle-class status.
But, it’s worth noting that these numbers haven’t been adjusted for our current inflation, which has only increased the cost of living since 2020.
Last year, the median household income in 2022 was $74,580.
Due to inflation, Illinois residents in particular need to spend over $11,500 just to afford the same goods and quality of life they had in 2021, according to a recently released economic analysis.
And while a 2022Galluppoll indicated 52% of U.S. adults consider themselves middle class — 38% identified themselves as “middle class,” while 14% identified as “upper-middle class” — Gallup also explains that since the Great Recession, Americans are more likely to identify as “working” or “lower” class.
According to Gallup, 35% of those polled said they considered themselves “working class,” while 11% called themselves “lower class.” The poll acknowledges that some people may consider “working class” and “middle class” to mean the same thing, since these definitions are flexible.
Curious as to where you fall? Pew Research Center’sAre You in the Middle Class?calculator can give you an estimate. And if you’re wondering how far your dollars will stretch if you relocate, Forbes’Cost of Living Calculatorcan help you figure out how much you need to maintain your standard of living in a new area.
