Do you consider yourself middle class? Many people do as they don’t think they are rich enough for upper class and most people don’t want to say they are lower income, so middle class it is. What actually is the middle class?
The Pew Research Center defines middle class, or middle-income households, as those with incomes that are two-thirds to double the U.S. median household income.
The cost of living and average income varies so widely from state to state, the income needed to be “middle class” in one state could be much more or less than what it takes to be middle class in another.
GOBankingRates analyzed data to determine how much two-, three- and four-person families need to earn in every state to qualify as middle class.
How Much Income Do You Need in Indiana To Be Considered Middle Class
- 2-person family middle-class income range: $42,360 to $126,448
- 3-person family middle-class income range: $49,472 to $147,678
- 4-person family middle-class income range: $58,007 to $173,156
The current median household income for Indiana is $57,603. According to salary.com with calculations based on the total cost of energy, food, healthcare, housing and transportation, the cost of living in Indianapolis is 5.5% lower than the national average.
How Middle Class Is Indiana?
In comparison through out the country, Indiana ranks in the lower half of states for middle-class incomes in two-, three- and four-person families, ranking No. 35, No. 31 and No. 33, respectively.
About 48 percent of Indiana adults fit the definition of middle class according to an analysis by the Pew Research Center. 55 percent of adults in Indianapolis-Carmel-Anderson fall into the middle class category. Compared to the median US household income, Indiana median household income is $8,109 lower.
How Much Do You Need To Earn To Be In the Top 1% In Indiana?
In 2020, U.S. national median household income fell by 2.9% compared to the previous year, the first time since 2011. The decline in median household incomes came thanks to the pandemic, which took jobs in the retail and hospitality industries.
Real median household income peaked in 2007 at $58,648 and is now $1,045 (1.78%) lower. Over the past 2 years, the median income of Hoosiers rose slightly from $56,756 to $57,603.
If you want to be a one percenter, you’ll need some bank! Here is the income requirement to be considered in the top 1 percent in Indiana…
- Top 1% income threshold: $437,567
- Top 5% income threshold: $192,928