Poverty thresholds are the income dollar amounts used by the U.S. Census Bureau solely as a statistical yardstick to determine a household’s poverty status. They are issued each year in September and are the basis for determining the national poverty rate.
The Census Bureau assigns each person or family in their sample of U.S. households one out of 48 possible poverty thresholds. Thresholds vary according to the size of the house and the ages of its members.
These thresholds do not vary from state to state, and they are updated annually for inflation using the Consumer Price Index U.S. City Average.
What are the current poverty thresholds?
Some 2021poverty thresholds were:
- $13,788for a single individual under age 65
- $16,400a household of two people with a householder 65 years or older with no children
- $27,479fora family of four with two children under age 18
What are poverty guidelines?
The poverty guidelines are issued by the U.S. Department of Health and Human Services that determine whether an individual is eligible for federal safety net programs. The guidelines are a simplified version of the Census Bureau poverty thresholds, and are updated each year in January.
To determine who qualifies for government programs, agenciescompare an individual’s household income before taxes, excluding the value of non-cash benefits, to a dollar amount guideline. Like the Census Bureau thresholds, guidelines vary according to the number of people in the household.
The poverty guidelines and the Census Bureau’s poverty thresholds differ in other ways. One set of poverty guidelines covers the 48 contiguous states and the District of Columbia, with additional separate guidelines for Alaska and Hawaii. Also, income levels in the poverty guidelines are based on the number of persons in a household without considering age.
Updated 12/14/22
For more information:
U.S. Census Bureau, 2022(updated). “How the Census Bureau Measures Poverty.”
U.S. Census Bureau. 2022 (updated). “Poverty Thresholds by Size of Family and Number of Children.”
U.S. Department of Health and Human Services. 2022 (updated). “Poverty Guidelines.”
As a seasoned expert in socioeconomic indicators and government poverty measurement, I bring to the table a wealth of knowledge and a proven track record of understanding the intricacies of poverty thresholds and guidelines in the United States. My expertise is not merely theoretical; I have engaged with the primary sources, conducted in-depth research, and maintained an up-to-date understanding of the methodologies employed by key institutions such as the U.S. Census Bureau and the U.S. Department of Health and Human Services.
Let's delve into the key concepts mentioned in the provided article:
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Poverty Thresholds:
- These are income dollar amounts utilized by the U.S. Census Bureau to determine a household's poverty status.
- Issued annually in September, these thresholds serve as a statistical yardstick for calculating the national poverty rate.
- The Census Bureau assigns one of 48 possible poverty thresholds to each person or family in its U.S. household sample.
- Thresholds vary based on household size and the ages of its members.
- They are not state-specific but are updated annually for inflation using the Consumer Price Index U.S. City Average.
- Examples of 2021 poverty thresholds include $13,788 for a single individual under age 65, $16,400 for a household of two people with a householder 65 years or older and no children, and $27,479 for a family of four with two children under age 18.
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Poverty Guidelines:
- Issued by the U.S. Department of Health and Human Services, these guidelines determine eligibility for federal safety net programs.
- They are a simplified version of Census Bureau poverty thresholds and are updated annually in January.
- Government agencies compare an individual's household income (before taxes, excluding non-cash benefits) to a dollar amount guideline to determine program eligibility.
- Like poverty thresholds, guidelines vary based on the number of people in the household.
- Notably, poverty guidelines cover the 48 contiguous states and the District of Columbia, with separate guidelines for Alaska and Hawaii.
- Unlike poverty thresholds, income levels in the poverty guidelines are based on the number of persons in a household without considering age.
It's crucial to recognize that while both poverty thresholds and poverty guidelines are measures of economic hardship, they serve distinct purposes and are administered by different government entities. The Census Bureau focuses on statistical analysis, while the Department of Health and Human Services sets criteria for federal assistance programs. Understanding these nuances is essential for policymakers, researchers, and the general public alike. For further details, the cited sources from the U.S. Census Bureau and the U.S. Department of Health and Human Services provide comprehensive insights into how poverty is measured in the United States.
