What Income Makes You 'Upper Class'? Here's What You Need To Rank Among The Top 20%

The term “upper class” evokes images of wealth and privilege. But what does it truly mean in terms of income? While there’s no definitive line, households in the top 20% of earners are generally considered upper class. 

According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you’d typically need an income exceeding $153,000 – more than double the national median. 

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Now, this might seem attainable, but other sources define the middle class a little differently since there are no strict or firm standards defining the upper class threshold. According to the Pew Research Center report, in 2022, the median household income for a three-person upper-class family was $256,920. For the middle class, the median income was $106,092 for a family of three. 

Income isn’t the sole determinant. Where you live significantly impacts your financial standing. For example, in a high-cost area such as Santa Clara, you need $297,800 to be classified as upper class. On the other hand, households in rural areas may qualify for upper class status at lower income levels due to reduced living expenses.

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U.S. census data from 2021 shows that the median net worth varies considerably across economic classes. The upper class possesses nearly 67 times the net worth of the lower class. Here's a breakdown: 

• Lower class: $12,000
• Lower-middle class: $61,260
• Middle class: $145,200
• Upper-middle class: $269,100
• Upper class: $805,400

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Education plays a crucial role in wealth accumulation. In 2021, households headed by individuals with graduate or professional degrees had a median net worth of $555,900, compared to just $8,460 for those without a high school diploma.

According to a Pew Research Center report conducted in 2022, men were slightly more likely than women to be in upper-income households, with 18% of men and 16% of women falling into this category. Marriage appears to significantly boost the economic status of Americans. Among those married in 2022, 24% are in upper-income households. In contrast, only 7% of those who were separated, divorced, widowed, or never married were in upper-income households. Additionally, 19% of veterans were in upper-income households compared to 16% of nonveterans.

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For the upper class, wealth protection and growth are essential. Common strategies include diversifying investment portfolios, engaging in real estate investments, and utilizing high-yield savings accounts. These methods help safeguard against inflation and economic volatility, ensuring long-term financial stability.

No matter where you fall on the income scale, remember that it's your life and you control your financial future. Consulting a financial advisor can provide personalized strategies to help you meet your goals and manage your finances – whether striving to be in the top 20% or the top 1%. 

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