Anchiy / iStock.com
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
There are many opinions on what is considered upper middle class. It’s a social and economic concept that changes depending on location, household size, cost of living and individual perspectives. However, it’s important to define, helping us understand economic patterns, societal shifts and the economy’s overall health.
Here’s the household income range that qualifies as upper middle class:
Defining Upper Middle Class
The upper middle class, a significant segment of society, is typically characterized by higher income, educational attainment and professional careers. This group often enjoys a comfortable lifestyle with access to better healthcare, education and housing.
However, the boundaries of this class can vary based on factors like location, family size and cost of living.
The Income Range for the Upper Middle Class in 2024
Defining the income range for the upper middle class is complex due to varying definitions and economic conditions. Generally, this class includes households earning between the 75th and 90th percentile of the income distribution. This translates to a household income of roughly $150,000 to $250,000.
Finance expert Jake Claver, founder of the wealth management firmDigital Family Office, told GOBankingRates that a middle-class income would be in the $50,000 to $150,000 range. However, these figures can significantly differ in high-cost areas like New York City or San Francisco.
Trending Now: Billionaires vs. the Middle Class: Who Pays More in Taxes?
Factors Influencing Upper Middle-Class Status
Geographic Location
The cost of living plays a significant role in determining class status. For instance, a $100,000 income might afford a lavish lifestyle in a small town but barely cover basic expenses in a major city.
Household Size
Family size impacts how far an income can stretch. A couple earning $150,000 may live comfortably, but if they have multiple children, the same income might not suffice for an upper-middle-class lifestyle.
Inflation and Economic Changes
Inflation rates and economic shifts can affect purchasing power. What qualified as upper middle class a decade ago may not hold today due to economic and living costs changes.
The Role of Education and Career
Education and career choice often correlate with income levels. Those with advanced degrees or in high-paying fields are more likely to fall into the upper middle class. This correlation underscores the importance of education and career planning in achieving this socioeconomic status.
Make your money work for you
Get the latest news on investing, money, and more with our free newsletter.
By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time.
Thanks!
You're now subscribed to our newsletter. Check your inbox for more details.
Savings and Investments
Upper-middle-class status isn’t solely about income; it also involves financial stability and growth. This class typically has the means to save, invest and plan for retirement, contributing to long-term financial security.
Challenges Facing the Upper Middle Class
Despite their comfortable income, the upper middle class faces challenges like maintaining their lifestyle amidst rising costs, saving for retirement and ensuring quality education for their children. They also often bear a significant tax burden.
The Bottom Line
For 2024, the upper middle class in the U.S. generally includes households with incomes ranging from $150,000 to $250,000. However, this range can vary based on location, family size and economic conditions.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.