Are You Actually Middle Class? The Answer Might Surprise You

According to the Pew Research Center, middle class, three-person households earn between two-thirds and double the national median income, which was $83,730 in 2024. So for three-person households, using this definition, "middle class" means the household earned between $55,262 and $167,460 in 2024.

But that's not the whole story. There's also cost of living, the number of your dependents, and your financial stability to consider when determining if you're considered middle class.

Location Matters

The cost of living varies based on where you live, and the definition of middle class does, too. The Pew Research Center has created a calculator that illustrates this, based on information from over 250 metro areas across the U.S. (It's computed for three-person households and expressed in 2022 dollars.)

For example, the area of Jackson, Tennessee is at a price level of 13% less than the national average, whereas the area of San Francisco-Oakland-Berkeley, California is at a price level of almost 18% above the national average. So while a certain salary—say, $65,000—in many parts of the Midwest or the South might feel comfortable, it could be difficult to live off of that in cities like San Francisco or New York.

Related Stories

4 Signs You’re Not Doing as Well Financially as You Think—And How to Fix It

Is Being Too Nice With Money Costing You? 9 Habits That Quietly Drain Your Wallet

So, Are You Middle Class?

To know where you really stand, consider the following:

How Big Is Your Household

According to the Pew Research Center, in 2024, on a national basis, a middle class household with three people had a household income between $55,262 and $167,460. If you're single, your threshold would be lower. If you're a family of four, it would be higher.

Where Do You Live?

Cost of living varies drastically across the nation. Pew's lower threshold for middle class—$55,262—would be lower in Jacksonville, Tennessee and higher in San Francisco.

What Is Your Financial Profile?

While you may make the income thresholds of being middle class, what does your financial profile look like? Are you saddled with debt, have no savings, and fear retirement?

Steps to Strengthen Your Finances

Whether you fall into the middle class in your locality, the following advice will help strengthen your financial situation at all income levels.

1. Budget smartly: Track all expenses for a month, paying attention to what are fixed costs (rent, insurance, groceries) versus discretionary spending. See where you can trim back.
2. Diversify and boost your income: Relying on one source of income can be risky, because if you get laid off, you're not bringing in any earnings, which could deplete savings or increase debt. Look at side gigs that suit your skills, such as tutoring, taking photos, or DIY work for others. Ask for a raise, or use online classes to learn new skills, and then go for a higher-paying job.
3. Manage debt actively: If you have a significant amount of high-interest debt, you can't just hope for it to go away or pay your minimum monthly payments, expecting that it'll go down. You need real strategies that bring your debt levels down. Take a look at the snowball and avalanche strategies and see what works best for you.
   
   Focus on saving and create an emergency fund: An emergency fund should typically cover between three to six months of expenses. This helps when you have high unexpected expenses, like a large medical bill, or if you lose your job. It'll prevent you from relying on debt to cover your costs. Saving as early as you can benefits from compounding over time.
4. Plan for the future: Waiting to pay for expenses as they arise can be risky. You want to have enough breathing room when paying for a down payment for a home, your child's education, career changes, and retirement. Using accounts like a 529 or 401(k) and low-cost index funds can put you on the right financial track.

The Bottom Line

Whether you're in the middle class is about more than your paycheck. It depends on where you live, how many people financially depend on you, and what your daily financial life looks like. Even if you're technically middle class by income, high debt, a lack of savings, or large expenses can leave you financially stressed.

Regardless of where you are financially, smart money strategies can build your wealth over time, keep you safe when life throws a curveball, and reduce your financial stress. Budgeting wisely, contributing to retirement accounts, and creating an emergency fund can set you up for a healthy financial life.