Defining "middle class" isn't as simple as having a certain amount of money. A new analysis by SmartAsset reveals the income ranges that define middle-class status in each U.S. state. The study, based on 2023 income data, highlights the significant differences in the cost of living across the nation.
In every state, the upper limit of what's considered middle class surpasses $100,000. This indicates that factors like housing costs, healthcare expenses, and everyday goods contribute to the income needed to maintain a middle-class lifestyle. The specific income ranges vary widely, reflecting the unique economic landscapes of each state.
For example, states with higher costs of living, such as Hawaii or California, require a significantly larger income to be considered middle class compared to states with lower costs of living. Understanding these income benchmarks can provide valuable insights for families planning their finances and making decisions about where to live. While a six-figure income might seem substantial, it's important to consider the context of where you live to accurately assess your financial situation and lifestyle.
What Income Defines Middle Class in Each U.S. State?
A recent study shows that a six-figure income doesn't automatically mean you're rich; in many states, it's considered middle class. According to a SmartAsset analysis using the most recent income data from 2023, the upper income limit for middle-class households exceeds $100,000 in every U.S. state. This means the cost of living and what it takes to maintain a middle-class lifestyle varies significantly across the country. Understanding these income ranges can help families better assess their financial standing.
Source: Read the original article at NBC