Money / Wealth
9 min Read
By Alexandria Bova
The term “class,” first widely used in the 19th century, is still used to characterize a group of individuals who occupy the same tier on the economic ladder. Today, social classes are divided into three major groups: working (or lower) class, middle class and upper class.
In a 2022 survey conducted by Gallup, about half of Americans identified as middle class, 38% as middle class, and 14% as upper middle class, but only 2% identified as upper class. Income plays the largest role in determining class structure; however, the amount of money needed to ascend into a new class can be tricky to nail down. While there’s no single formula for how ambitious, middle-income Americans increase their social mobility, some states are better than others for enabling the move from middle to upper class.
To find out where it’s easiest to go from middle class to upper class, GOBankingRates drew data from the 2021 Bureau of Labor Statistics Consumer Expenditure Survey and the Missouri Economic Research and Information Center’s composite cost of living index for each state from the 2022 averages. We analyzed state-by-state changes in different levels of income over the years. For each state, the study found the year-over-year change and the five-year change in the percentage of households with the 2021 median household income, which was $69,021, as well as the percentage of households with incomes of $150,000-$199,999 and $200,000 or more. GOBankingRates defined middle class as $46,013 – $138,042 based on the 2021 ACS median household income of $69,021.
GOBankingRates ranked the states by difficulty in moving from middle class to upper class, with the easiest state placed first.
1. Idaho
- 2021 median household income: $63,377
- Five-year change in:
- Median household income: 28.88%
- Households earning $150,000-$199,999: 78.79%
- Households earning $200,000 or more: 96.55%
- Annual expenditures: $66,660.29
2. Utah
- 2021 median household income: $79,133
- Five-year change in:
- Median household income: 26.58%
- Households earning $150,000-$199,999: 66.04%
- Households earning $200,000 or more: 84.78%
- Annual expenditures: $68,801.98
3. Washington
- 2021 median household income: $82,400
- Five-year change in:
- Median household income: 31.11%
- Households earning $150,000-$199,999: 50.77%
- Households earning $200,000 or more: 96.83%
- Annual expenditures: $76,431.78
4. Oregon
- 2021 median household income: $70,084
- Five-year change in:
- Median household income: 31.56%
- Households earning $150,000-$199,999: 75.56%
- Households earning $200,000 or more: 95.35%
- Annual expenditures: $81,116.74
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5. Colorado
- 2021 median household income: $80,184
- Five-year change in:
- Median household income: 28.25%
- Households earning $150,000-$199,999: 50.77%
- Households earning $200,000 or more: 76.19%
- Annual expenditures: $70,006.69
6. Maine
- 2021 median household income: $63,182
- Five-year change in:
- Median household income: 24.31%
- Households earning $150,000-$199,999: 83.33%
- Households earning $200,000 or more: 75.76%
- Annual expenditures: $77,167.98
7. New Hampshire
- 2021 median household income: $83,449
- Five-year change in:
- Median household income: 21.85%
- Households earning $150,000-$199,999: 44.59%
- Households earning $200,000 or more: 66.67%
- Annual expenditures: $77,703.41
8. Indiana
- 2021 median household income: $61,944
- Five-year change in:
- Median household income: 22.82%
- Households earning $150,000-$199,999: 66.67%
- Households earning $200,000 or more: 80.00%
- Annual expenditures: $60,168.27
9. Vermont
- 2021 median household income: $67,674
- Five-year change in:
- Median household income: 20.62%
- Households earning $150,000-$199,999: 56.52%
- Households earning $200,000 or more: 80.00%
- Annual expenditures: $77,569.55
10. Nevada
- 2021 median household income: $65,686
- Five-year change in:
- Median household income: 23.72%
- Households earning $150,000-$199,999: 71.43%
- Households earning $200,000 or more: 83.78%
- Annual expenditures: $69,069.70
11. Arizona
- 2021 median household income: $65,913
- Five-year change in:
- Median household income: 28.39%
- Households earning $150,000-$199,999: 59.09%
- Households earning $200,000 or more: 76.19%
- Annual expenditures: $70,809.82
12. Tennessee
- 2021 median household income: $58,516
- Five-year change in:
- Median household income: 25.64%
- Households earning $150,000-$199,999: 58.33%
- Households earning $200,000 or more: 71.43%
- Annual expenditures: $60,369.06
13. Minnesota
- 2021 median household income: $77,706
- Five-year change in:
- Median household income: 22.92%
- Households earning $150,000-$199,999: 49.18%
- Households earning $200,000 or more: 70.18%
- Annual expenditures: $65,254.80
14. Georgia
- 2021 median household income: $65,030
- Five-year change in:
- Median household income: 27.42%
- Households earning $150,000-$199,999: 54.35%
- Households earning $200,000 or more: 76.09%
- Annual expenditures: $59,298.21
15. Montana
- 2021 median household income: $60,560
- Five-year change in:
- Median household income: 25.18%
- Households earning $150,000-$199,999: 81.82%
- Households earning $200,000 or more: 69.70%
- Annual expenditures: $70,140.54
16. Wisconsin
- 2021 median household income: $67,080
- Five-year change in:
- Median household income: 22.83%
- Households earning $150,000-$199,999: 64.29%
- Households earning $200,000 or more: 69.44%
- Annual expenditures: $63,916.24
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17. Nebraska
- 2021 median household income: $66,644
- Five-year change in:
- Median household income: 22.54%
- Households earning $150,000-$199,999: 61.90%
- Households earning $200,000 or more: 67.57%
- Annual expenditures: $61,506.83
18. Michigan
- 2021 median household income: $63,202
- Five-year change in:
- Median household income: 24.41%
- Households earning $150,000-$199,999: 55.81%
- Households earning $200,000 or more: 73.68%
- Annual expenditures: $61,707.62
19. Pennsylvania
- 2021 median household income: $67,587
- Five-year change in:
- Median household income: 23.12%
- Households earning $150,000-$199,999: 48.00%
- Households earning $200,000 or more: 71.43%
- Annual expenditures: $65,723.30
20. Ohio
- 2021 median household income: $61,938
- Five-year change in:
- Median household income: 22.23%
- Households earning $150,000-$199,999: 53.66%
- Households earning $200,000 or more: 67.57%
- Annual expenditures: $61,506.83
21. Missouri
- 2021 median household income: $61,043
- Five-year change in:
- Median household income: 23.09%
- Households earning $150,000-$199,999: 56.41%
- Households earning $200,000 or more: 71.43%
- Annual expenditures: $59,632.85
22. California
- 2021 median household income: 23.09%
- Five-year change in:
- Median household income: 31.85%
- Households earning $150,000-$199,999: 35.62%
- Households earning $200,000 or more: 71.43%
- Annual expenditures: $59,632.85
23. North Carolina
- 2021 median household income: $60,516
- Five-year change in:
- Median household income: 25.41%
- Households earning $150,000-$199,999: 56.41%
- Households earning $200,000 or more: 76.92%
- Annual expenditures: $64,050.10
24. Rhode Island
- 2021 median household income: $74,489
- Five-year change in:
- Median household income: 27.58%
- Households earning $150,000-$199,999: 40.32%
- Households earning $200,000 or more: 63.64%
- Annual expenditures: $75,561.71
25. South Carolina
- 2021 median household income: $58,234
- Five-year change in:
- Median household income: 24.17%
- Households earning $150,000-$199,999: 61.11%
- Households earning $200,000 or more: 84.38%
- Annual expenditures: $63,113.10
26. Illinois
- 2021 median household income: $72,563
- Five-year change in:
- Median household income: 22.58%
- Households earning $150,000-$199,999: 41.67%
- Households earning $200,000 or more: 62.90%
- Annual expenditures: $61,975.33
27. Iowa
- 2021 median household income: $65,429
- Five-year change in:
- Median household income: 19.90%
- Households earning $150,000-$199,999: 60.00%
- Households earning $200,000 or more: 65.71%
- Annual expenditures: $59,699.78
28. West Virginia
- 2021 median household income: $50,884
- Five-year change in:
- Median household income: 19.32%
- Households earning $150,000-$199,999: 60.71%
- Households earning $200,000 or more: 65.22%
- Annual expenditures: $60,235.20
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29. Kansas
- 2021 median household income: $64,521
- Five-year change in:
- Median household income: 20.44%
- Households earning $150,000-$199,999: 55.81%
- Households earning $200,000 or more: 65.00%
- Annual expenditures: $58,562.00
30. Kentucky
- 2021 median household income: $55,454
- Five-year change in:
- Median household income: 23.75%
- Households earning $150,000-$199,999: 67.74%
- Households earning $200,000 or more: 68.97%
- Annual expenditures: $63,514.67
31. Alabama
- 2021 median household income: $54,943
- Five-year change in:
- Median household income: 22.76%
- Households earning $150,000-$199,999: 55.56%
- Households earning $200,000 or more: 75.86%
- Annual expenditures: $58,963.57
32. Florida
- 2021 median household income: $61,777
- Five-year change in:
- Median household income: 26.33%
- Households earning $150,000-$199,999: 57.50%
- Households earning $200,000 or more: 65.91%
- Annual expenditures: $68,801.98
33. Massachusetts
- 2021 median household income: $89,026
- Five-year change in:
- Median household income: 25.47%
- Households earning $150,000-$199,999: 30.59%
- Households earning $200,000 or more: 69.79%
- Annual expenditures: $100,191.22
34. Virginia
- 2021 median household income: $80,615
- Five-year change in:
- Median household income: 21.87%
- Households earning $150,000-$199,999: 31.08%
- Households earning $200,000 or more: 54.12%
- Annual expenditures: $68,801.98
35. South Dakota
- 2021 median household income: $63,920
- Five-year change in:
- Median household income: 22.74%
- Households earning $150,000-$199,999: 67.65%
- Households earning $200,000 or more: 48.57%
- Annual expenditures: $63,246.96
36. New Jersey
- 2021 median household income: $89,703
- Five-year change in:
- Median household income: 21.71%
- Households earning $150,000-$199,999: 21.11%
- Households earning $200,000 or more: 53.70%
- Annual expenditures: $75,227.07
37. Arkansas
- 2021 median household income: $52,123
- Five-year change in:
- Median household income: 23.12%
- Households earning $150,000-$199,999: 67.86%
- Households earning $200,000 or more: 73.08%
- Annual expenditures: $60,636.77
38. Maryland
- 2021 median household income: $91,431
- Five-year change in:
- Median household income: 20.20%
- Households earning $150,000-$199,999: 25.00%
- Households earning $200,000 or more: 54.64%
- Annual expenditures: $82,990.72
39. Wyoming
- 2021 median household income: $68,002
- Five-year change in:
- Median household income: 14.98%
- Households earning $150,000-$199,999: 46.00%
- Households earning $200,000 or more: 62.86%
- Annual expenditures: $61,908.40
40. New Mexico
- 2021 median household income: $54,020
- Five-year change in:
- Median household income: 18.27%
- Households earning $150,000-$199,999: 42.11%
- Households earning $200,000 or more: 58.06%
- Annual expenditures: $62,912.32
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41. Hawaii
- 2021 median household income: $88,005
- Five-year change in:
- Median household income: 22.27%
- Households earning $150,000-$199,999: 43.04%
- Households earning $200,000 or more: 75.34%
- Annual expenditures: $123,147.52
42. Texas
- 2021 median household income: $67,321
- Five-year change in:
- Median household income: 23.01%
- Households earning $150,000-$199,999: 45.28%
- Households earning $200,000 or more: 52.63%
- Annual expenditures: $61,908.40
43. Delaware
- 2021 median household income: $72,724
- Five-year change in:
- Median household income: 19.19%
- Households earning $150,000-$199,999: 39.34%
- Households earning $200,000 or more: 57.41%
- Annual expenditures: $70,675.97
44. Louisiana
- 2021 median household income: $53,571
- Five-year change in:
- Median household income: 17.35%
- Households earning $150,000-$199,999: 41.46%
- Households earning $200,000 or more: 54.05%
- Annual expenditures: $62,644.61
45. New York
- 2021 median household income: $75,157
- Five-year change in:
- Median household income: 23.73%
- Households earning $150,000-$199,999: 34.33%
- Households earning $200,000 or more: 61.25%
- Annual expenditures: $90,018.16
46. Mississippi
- 2021 median household income: $49,111
- Five-year change in:
- Median household income: 21.18%
- Households earning $150,000-$199,999: 70.37%
- Households earning $200,000 or more: 65.22%
- Annual expenditures: $56,888.80
47. North Dakota
- 2021 median household income: $68,131
- Five-year change in:
- Median household income: 15.25%
- Households earning $150,000-$199,999: 46.00%
- Households earning $200,000 or more: 36.73%
- Annual expenditures: $64,987.09
48. Oklahoma
- 2021 median household income: $56,956
- Five-year change in:
- Median household income: 18.56%
- Households earning $150,000-$199,999: 47.22%
- Households earning $200,000 or more: 54.55%
- Annual expenditures: $57,424.22
49. Connecticut
- 2021 median household income: $83,572
- Five-year change in:
- Median household income: 16.47%
- Households earning $150,000-$199,999: 23.17%
- Households earning $200,000 or more: 42.16%
- Annual expenditures: $78,171.90
50. Alaska
- 2021 median household income: $80,287
- Five-year change in:
- Median household income: 7.85%
- Households earning $150,000-$199,999: 13.64%
- Households earning $200,000 or more: 51.47%
- Annual expenditures: $84,730.85
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Jordan Rosenfeld contributed to the reporting of this article.
Methodology: In order to find the states where it is easiest to go from ‘middle class” to “upper class,” GOBankingRates found each state’s (1) 2021 Median Household income, as well as the (2) year-over year change and the (3) 5-year percentage change in median household income. GOBankingRates then found the (4) 2021 percent of households with incomes $100,000 – $149,000, the (5) year-over year change and the (6) 5-year percentage change in the percent of households with incomes of $100,000 – $149,000, the (7) 2021 percent of households with incomes of $150,000 – $199,999, the (8) year-over-year change and the (9) 5-year percentage change in the percent of households with incomes of $150,000 – $199,999, as well as the (10) 2021 percent of households with incomes of $200,000+, and the (11) year-over year change and the (12) 5-year percentage change in the percent of households with incomes of $200,000+ all sourced from the 2016, 2020 and 2021 American Community Surveys that are conducted by the U.S Census Bureau. GOBankingRates also found each state’s (13) annual expenditures which were calculated using the 2021 Bureau of Labor Statistics Consumer Expenditure Survey, which was then factored out using the Missouri Economic Research and Information Center’s composite cost of living index for each state from the 2022 averages. These thirteen factors were then scored and combined with the lowest score being the best. Factors 1 through 3 were weighted 0.5 times and factor 13 holds 1.5 times weight. All data was gathered and is up to date as of April 10, 2023.
GOBankingRates took middle class to be defined as $46,013 – $138,042 based on the 2021 ACS median household income of $69,021.
I'm an enthusiast with a deep understanding of economic structures and social classes. The article you provided delves into the dynamics of social mobility and the ease of transitioning from the middle class to the upper class in different states. As an expert in this field, I can shed light on the key concepts used in the article.
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Social Classes and Economic Ladder: The article discusses the three major social classes – working (or lower) class, middle class, and upper class. These classifications are based on individuals' economic standing, a concept that has been prevalent since the 19th century.
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Survey and Class Identification: The 2022 Gallup survey is referenced, where about half of Americans identified as middle class, 38% as working class, and 14% as upper middle class. This survey highlights the subjective nature of class identification.
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Income as a Determining Factor: The article emphasizes that income plays the most significant role in determining class structure. It acknowledges the complexity of defining the amount of money required to move from one class to another.
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State-by-State Analysis: The study conducted by GOBankingRates analyzes state-specific data, considering factors such as median household income, year-over-year changes, and five-year percentage changes. The goal is to identify states where it's easiest to move from the middle class to the upper class.
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Middle Class Definition: GOBankingRates defines middle class as the income range of $46,013 to $138,042, based on the 2021 ACS median household income of $69,021. This definition serves as a benchmark for evaluating social mobility.
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Expenditure and Cost of Living: The article incorporates annual expenditures and the composite cost of living index for each state to provide a comprehensive view of the economic conditions. States with lower costs of living might be more conducive to upward mobility.
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Methodology: The methodology section outlines how the study scores and combines factors, with an emphasis on income levels, year-over-year changes, and expenditure. The combination of these factors determines the ease of moving from the middle class to the upper class in each state.
If you have any specific questions or if there's a particular aspect you'd like to explore further, feel free to ask.
