The perception of what constitutes a wealthy salary is shifting, as many earning six figures are finding it difficult to manage in the face of rising living expenses and reduced salary value. A recent analysis of 2023 U.S. Census Bureau data reveals that households earning $100,000 annually are categorized as “middle-class” in every U.S. state.
The threshold for being considered affluent has evolved, with almost $200,000 annual earnings not meeting the upper-class criteria in some states. Accumulating wealth is increasingly confined to the top 1%, who continue to generate millions regularly. An analysis by SmartAsset indicates that in Massachusetts and New Jersey, a household with an annual income of $199,000 is still deemed middle-class.
In Mississippi, the state with the lowest middle-class income threshold, an income exceeding $108,000 is necessary to be perceived as prosperous. For middle-class homes, which include roughly 52% of American workers, salary requirements vary significantly. In one state, a salary as low as $36,132 is needed, while another state’s requirement is $199,716. Nationwide, a $100,000 salary is insufficient to qualify as upper-class, with many six-figure earners struggling financially.
Historically, a six-figure income signified luxury and financial security, but it now barely supports basic living costs for many. Over half of Americans earning more than $100,000 annually were living paycheck to paycheck in 2022, a 7% increase from the previous year, as reported by PYMNTS and LendingClub in 2023.
This financial strain on six-figure earners is attributed to inflation and fluctuating salaries, as noted by SmartAsset. Wage deflation has impacted workers, with those remaining in their current jobs seeing a 4.6% salary increase, compared to a slightly higher 4.8% for job switchers, according to recent data from the Atlanta Federal Reserve. These dynamics have dampened the appeal of changing jobs for monetary gain.
Rising inflation has also affected living expenses, such as egg prices increasing by over 60% and a housing market hindered by high costs. A middle-class existence is expected to cover basic needs, yet 65% of these households report that their income lags behind the cost of living, according to a 2024 Primerica survey.
The traditional American Dream—symbolized by a home with a white picket fence and ample provisions—is no longer achievable solely through a six-figure salary. While some states with lower income thresholds offer a path to upper-class status, high-paying jobs are scarce in those regions. Overall, the average middle-class household in every state still falls short of a $100,000 income.
A compiled list outlines the highest to lowest income thresholds needed to maintain a middle-class status in each state:
1. Massachusetts: $199,716
2. New Jersey: $199,562
3. Maryland: $197,356
4. New Hampshire: $193,676
5. California: $191,042
6. Hawaii: $190,644
7. Washington: $189,210
8. Utah: $186,842
9. Colorado: $185,822
10. Connecticut: $183,330
11. Virginia: $179,862
12. Alaska: $173,262
13. Minnesota: $170,172
14. Rhode Island: $169,944
15. New York: $164,190
16. Delaware: $162,722
17. Vermont: $162,422
18. Illinois: $160,612
19. Oregon: $160,320
20. Arizona: $154,630
[The list continues with similar details for all U.S. states, ordered by their upper boundary income thresholds for middle-class designations.]
This report first appeared on Fortune.com.
