The Demographics of Income and Wealth in the United States
Understanding how income and wealth are distributed across the American population is essential context for evaluating fiscal policy — from the design of tax policy and social programs to the long-term sustainability of the federal budget.
Government surveys collect a wide range of information about the population of the United States, containing useful insights about Americans’ economic statuses. Surveys conducted by the U.S. Census Bureau and the Federal Reserve Board include data on household income and wealth:
- The American Community Survey (ACS) provides income data at the state and local levels,
- The Current Population Survey Annual Social and Economic Supplement (ASEC) presents national-level income data for various demographic categories,
- The Survey of Income and Program Participation (SIPP) offers data on household wealth, and
- The Survey of Consumer Finances (SCF) includes additional information on families’ balance sheets, pensions, and incomes.
The tables and charts below depict the distribution of income and wealth across different demographic characteristics. The data reflect money income, defined as pre-tax cash income before accounting for tax liabilities, credits, or non-cash benefits such as food assistance or employer-provided health insurance. Wealth reflects net worth, defined as the difference between a household’s assets and debts.
The surveys show that there are meaningful differences in both income and wealth across geography, education, race, and sex.
Household Income Levels Vary Across Geography
According to the ASEC, median household income was $83,730 in 2024, which is only a 1 percent increase from the median household income in 2023. The median is the midpoint of all values in a series and is helpful for evaluating income because extremely high earners do not skew the findings. Looking at high-level data, however, may mask important differences by region, race, level of education, and other categories.
The table below shows that median income varies by region — for example, it is higher for households in the West and Northeast than it is for those in the Midwest and South.
The ACS provides income data for the 50 states, the District of Columbia, and Puerto Rico. The table below shows the wide discrepancy in household incomes across the United States in 2024. The median household in the District of Columbia (highest) had an income that was four times that of the median household in Puerto Rico (lowest).
Income Levels Vary Across Race, Education, and Sex
The ASEC also measures income for full-time, year-round workers across various demographic categories. For all of those workers, the median income was $63,360 in 2024, practically unchanged from the year prior.
The table below shows a worker’s median income grouped by race and ethnicity. In 2024, individuals who identified as Asian or white had median incomes higher than the national median, while individuals who identified as Black or Hispanic had median incomes that were lower than the national median.
The table below shows median income grouped by educational attainment. Individuals 25 years of age or older with a bachelor’s degree have incomes that are considerably higher than the national median. Meanwhile, individuals without a bachelor’s degree earn less than the national median.
The ASEC also gathers data on earnings by sex. In 2024, the median earnings for full-time, year-round male workers were approximately $13,600 higher than the median earnings for full-time, year-round female workers.
Wealth Is an Important Component of Americans’ Economic Status
When it comes to describing Americans’ financial positions, wages do not tell the whole story. Income measures the flow of money and other assets during a given period of time, whereas wealth measures an accumulated stock of money and other assets.
Wealth is measured through a concept called net worth. Net worth is the difference between a household’s assets and debts. For example, if a household has $10,000 in its checking account, $40,000 of student debt, and $5,000 of credit card debt, then it has a net worth of −$35,000.
The table below shows median net worth in 2023 by education level. (SIPP data for 2024 have not yet been published.) It illustrates how net worth, on average, is higher for households with a higher level of educational attainment.
SIPP data also show median wealth by race and ethnicity. In 2023, households in which the householder identified as Asian had a median net worth of $384,500, whereas those who identified as Black had a median net worth of $33,370.
Finally, the Federal Reserve Board, in cooperation with the Department of the Treasury, conducts a triennial survey to assess the finances of American families. According to the SCF, while median wealth has risen for each group, substantial gaps remain between the groups.
Conclusion
There are extensive data collected on wages and wealth of Americans, which find meaningful differences across geography, education, race, and sex. Lawmakers should take those differences into account when developing sustainable and equitable fiscal and economic policies for our nation.
Image credit: IP Galanternik D.U.
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