What Counts as Upper-Class Income and Why It’s Not Just About the Number
Have you ever wondered what it really means to be “upper class” in America today? Is it a six-figure salary? Living in a big city? Driving a certain kind of car?
Let’s break it down.
What Is an Upper-Class Income?
To kick things off, I asked what income level qualifies someone as upper class. My initial guess was $150,000 to $200,000 annually—but like most things in personal finance, the answer isn’t one-size-fits-all. It depends on where you live, your household size, and your lifestyle.
ZipRecruiter shows that the median individual income in the U.S. is around $60,000. That’s often mistaken for being “middle class,” but it’s more accurately described as middle-tier.
According to the Pew Research Center, a middle-class household earns about two-thirds to double the national median household income. That works out to roughly $54,000 to $161,000 annually. So if you’re earning more than $161,000, congratulations—you’re considered upper class.
Now, Pew’s data is based on household income, not individual income. That could include dual-income families or blended households. For this conversation, I like to apply these definitions on an individual basis too, because not everyone lives in a two-earner household.
The Growing Gap Between Incomes
Over the past 40 years, the income gap between middle- and upper-income earners has widened significantly. Upper-income earners have seen their median income grow by 64%, compared to just 49% for middle-income earners.
And the wealth gap is even more dramatic. Upper-income households typically hold 7.4 times more wealth than their middle-income counterparts—and 75 times more than lower-income earners.
Why? One big reason is home equity. Nearly two-thirds of middle-income wealth is tied up in a primary residence, which means it’s vulnerable to swings in the housing market. In contrast, upper-income earners have diversified. They’ve increased their non-home net worth by 33%, while middle-income earners have actually seen that number drop by 20%.
The Secret to Wealth Isn’t Just a Big Paycheck
Here’s the good news: wealth isn’t built overnight—and it isn’t reserved only for high earners. It’s built through consistent investing.
No matter your income, you should be investing a portion of every paycheck. Compound interest works best when you start early and stay consistent. And while higher incomes do allow for more discretionary income (which can go toward real estate, the stock market, or launching a business), every dollar you invest is a step toward financial freedom.
Location, Location, Location
Let’s talk geography. Your income might stretch far in one place and feel tight in another.
I grew up in a small rural town, where a $100,000 income might feel luxurious. But when I moved to a metro area, I quickly realized how income expectations and living costs change dramatically. In cities like New York or San Francisco, an upper-class income could start at $200,000—or even $300,000—just to maintain a middle-class lifestyle.
Your zip code can influence not just what you earn, but what you can do with that income. It’s something to factor into your financial goals.
Final Thoughts
Income is a tool. It doesn’t define you, but it does give you the power to create a better financial future.
Whether you’re making $50,000 or $250,000, the goal is to build wealth through smart decisions: invest consistently, live below your means, and increase your income over time. That’s what creates financial flexibility and freedom—not just a number on a paycheck.
What do you consider an “upper-class” income in your area? I’d love to hear from you in the comments.
And as always, if you found this helpful, please like, subscribe, and share it with someone who’s building their future too.
All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.
