What Is Middle Class Income Tax Bracket in the U.S.?

Unless you’re extremely rich or poor, you probably think of yourself as being part of the “middle class.” As you’re probably aware, “middle class” is an income level that describes people whose annual income is directly in the middle 50% of all income. If you’re middle class, you are not considered to be rich or poor. However, when it comes to middle-class income, how much money is that, exactly?

We analyze below but if you’re part of the middle class then you could likely benefit from working with a financial advisor in order to maximize your potential wealth growth.

Why Is It Important to Know If You Have a Middle-Class Income?

Knowing whether your income falls within the middle-class range helps you understand where you stand economically compared to the broader U.S. population. It provides valuable context for evaluating your spending, saving, and investing habits. Recognizing your income bracket can also help you set realistic financial goals, whether that’s buying a home, saving for college or planning for retirement.

Your income level directly affects how much you pay in federal and state taxes. If you know you’re in the middle-class bracket, you can better anticipate your tax obligations and take advantage of deductions and credits available to your income group.

For example, middle-income earners often qualify for valuable tax benefits such as the Child Tax Credit, mortgage interest deductions, or education-related write-offs. Understanding these opportunities can help reduce your tax burden and improve your overall financial strategy.

Government programs and economic policies often target middle-income households, from tax relief measures to housing and education incentives. Knowing where your income falls can help you identify which programs you’re eligible for and how future policy changes might affect you. As debates over taxes, inflation and cost of living continue, understanding your income status gives you a clearer picture of how these shifts impact your personal finances.

What Is Middle-Class Income in the U.S.?

What Is Middle Class Income Tax Bracket in the U.S.?

The middle class has been eroding for some time now. According to research from the Pew Research Center, a respected nonpartisan American think tank based out of the District of Columbia, in 1971, middle-class Americans made up 61% of the population; in 2023, it was 51%. During that time, both lower-income and upper-income families grew as a group.

So what is considered middle-class income? That can be tricky to define, in part due to the size and location of a family. After all, a household making $100,000 a year is going to feel more squeezed if there are two parents and six children in the family than if there are two adults and two kids. Likewise, your community’s cost of living plays a large role in whether a family feels as if they are middle class. A hundred thousand a year will go a lot farther in a small town than in a big city.

The Pew Research Center describes the middle class as an individual who generates between two-thirds and doubles the median U.S. household income. In 2024, the U.S. Census Bureau said this median household income was $81,604. Using these numbers, a middle-class income would be any household that makes approximately $53,858 to $163,208.

Put another way, if you’re making less than $53,858 in your household, you are probably considered a low-income family. If you’re making between $53,858 and $163,208, you’re considered middle class. If you’re earning $163,208 and above, you’re likely considered upper class.

That’s a simplistic way of looking at it, however, since a family making $163,208 might not be living quite like a middle-class family if one adult is the breadwinner and there are many mouths to feed.

Middle-Class Income Doesn’t Matter as Much as Tax Brackets

If you realize that your income is squarely in the middle class, it’s interesting information to have, but as noted, that knowledge obviously doesn’t directly affect your finances. What does impact your finances are federal tax brackets and there are seven of them.

The lowest tax bracket is 10%. The highest tax bracket is 37%. If you’re in the middle class, you’re probably in the 22%, 24% or possibly 32% tax brackets. That may sound as if you’re paying 22%, 24% or 32% of your income toward taxes, but you’re actually not.

The first part of your income will be taxed at 10% and then more money will be taxed at 12% and so on until you reach your tax bracket. As your income goes up, the money within the tax bracket is taxed at the corresponding rate. This type of system of taxing, where you pay more, the more money you earn, is known as a progressive tax system. Some states, meanwhile, tax their residents differently. Some states have a progressive tax system and some have a flat tax rate.

Bottom Line

Being “middle class” is almost more of a mindset than anything else as it refers to your annual income. Politicians and the media often talk about middle-class values, but it isn’t as if anybody gets a certificate if they enter or exit the middle class. “Middle class” is really simply a label that describes one’s financial situation, rather than a label that changes one’s finances and it doesn’t make any household better than the other, whether they are part of the lower class, middle class or upper class. Just remember that your net worth, which you can always grow, should never be confused with your self-worth.

Tips for Growing Wealth

One of the best things you can do to stretch your income for retirement is to work with a financial advisor. An advisor can help advise you on your finances and prepare you for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Looking to build wealth? You can check out this guide on how to build wealth which provides a step-by-step process you can consider regardless of the size of your household income.