How Much Household Income Will Be Considered Upper Middle Class by the End of 2024?

The latest official figures from the U.S. Census Bureau place median household income at $74,580. The Pew Research Center defines middle-income households as those “with an income that is two-thirds to double that of the U.S. median household income.”

Also Read: What Is the Median Household Income for the Upper Middle Class in 2024?

Find Out: 4 Genius Things All Wealthy People Do With Their Money

This is a relatively large range. What level of income actually counts as upper middle class , and what factors could affect this category as 2024 continues to unfold?

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What’s Considered Upper Middle Class for Households?

Based on the Pew Research Center’s definition, middle-class household income ranges from approximately $49,715 to $149,160. There’s no clearly defined line that separates the middle from the upper middle class, but if we consider the upper middle class as earning income between the median middle-class household income and the upper threshold for middle class, then it would range from $106,092 to $149,160.

Check Out: What the Upper Middle Class Makes in Different US Cities

To summarize:

• US median household income: $74,580
• Median middle-class household income: $106,092
• Upper-middle-class household income range: $106,092 to $149,160

Which Major Factors Determine Whether Your Household Falls Into the Upper Middle-Class Income Range?

Here are a few important factors that can play a big part in whether your household income is an accurate indication of your middle-class status.

Region and Cost of Living

Different states can have significantly different income distributions that affect how the upper middle class is defined.

For example, in Mississippi, the median household income for being considered upper middle class is $91,841. In California, that number rises to $159,302. Even within states classified as being more or less affordable, there can be significant variation in the cost of living depending on where you live in the state.

Size of Household

The Pew Research Center figures are adjusted for a three-person household. Having a different number of people living in your household will affect the way you perceive your living standard.

For example, a family of five living in a high-cost area will need a much higher level of income to maintain a similar standard of living as a couple living in a lower-cost area.

How Might the Definition of Upper Middle Class Change by the End of 2024?

By the end of 2024, it’s possible that the income range defining the upper middle class could shift upward due to factors such as inflation and rising costs of living.

The expected annual inflation rate this year has risen to 2.6%. The core inflation rate, which excludes categories that have high price fluctuation, such as energy and food, is also expected to rise to 2.8%, according to the Commerce Department’s personal consumption expenditures price index.

What this means for the middle class is that daily living expenses will continue to rise throughout 2024, putting pressure on households to maintain their standard of living if they generate the same income.

Final Take

If you make between $106,000 and $150,000, then you would probably be considered upper middle class in most states. However, the actual amount of income you need depends on various factors, such as household size and the affordability of your residential location.

Households will continue to face high inflation rates and rising costs of goods and services in 2024. As a result, the range of income that defines the upper middle class could shift upwards.

This article originally appeared on GOBankingRates.com : How Much Household Income Will Be Considered Upper Middle Class by the End of 2024?