You are here
Income and Wealth in the United States: An Overview of Recent Data
Government surveys collect a wide range of information about the population of the United States that contain useful insights about Americans’ economic status. Three annual surveys conducted by the U.S. Census Bureau 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; and the Survey of Income and Program Participation (SIPP) offers data on household wealth. Below are several measures of income and wealth from those three surveys.
Income Levels Vary Across Geography, Race, and Gender
According to the ASEC, median household income was $70,784 in 2021, which is a decrease from the median household income in 2020 of $71,186. Looking at data for national averages, however, may mask important differences by region, race, level of education, or other categories.
The table below shows that median income varies by region — for example, it is higher for households in the Northeast and West than it is for those in the Midwest and South.
The Northeast and West have higher median household incomes than the Midwest and South
| Region | 2020 Median Household Income (2021 dollars) | 2021 Median Household Income |
|---|---|---|
| United States | $71,186 | $70,784 |
| Northeast | $79,032 | $77,472 |
| West | $78,755 | $79,430 |
| Midwest | $70,528 | $71,129 |
| South | $64,355 | $63,368 |
SOURCE: United States Census Bureau, Current Population Survey, 2021 and 2022 Annual Social and Economic Supplements.
NOTE: The differences between the values above are not all statistically significant at the confidence level used by the Census Bureau.
© 2022 Peter G. Peterson Foundation
The ACS provides income data at the state level. The table below shows the wide discrepancy in household incomes across the United States in 2021. The median household in Maryland, the highest-income state, had an income that was nearly double that of the median household in Mississippi, the lowest-income state.
Median household incomes vary widely by state
| State | 2021 Median Household Income |
|---|---|
| Maryland | $90,203 |
| District of Columbia | $90,088 |
| Massachusetts | $89,645 |
| Louisiana | $52,087 |
| West Virginia | $51,248 |
| Mississippi | $48,716 |
SOURCE: U.S. Census Bureau, 2021 American Community Survey 1-Year Estimates.
NOTE: The differences between the values above are not all statistically significant at the confidence level used by the Census Bureau.
© 2022 Peter G. Peterson Foundation
Income also varies by race and ethnicity. The table and chart below show median household income grouped by the race and ethnicity of the head of household. In 2021, households whose head was classified as Asian or White had median incomes that were higher than the national median, while households headed by people classified as Black or Hispanic had median incomes that were lower than the national median.
In 2021, median household income varied considerably by race and ethnicity
| Race/Ethnicity of Household Head | 2020 Median Household Income (2021 dollars) | 2021 Median Household Income |
|---|---|---|
| All races/ethnicities | $71,186 | $70,784 |
| Asian | $99,622 | $101,418 |
| White, not Hispanic | $78,912 | $77,999 |
| Hispanic (any race) | $58,015 | $57,981 |
| Black | $48,175 | $48,297 |
SOURCE: United States Census Bureau, Current Population Survey, 2021 and 2022 Annual Social and Economic Supplements.
NOTE: The differences between the values above are not all statistically significant at the confidence level used by the Census Bureau.
© 2022 Peter G. Peterson Foundation
The table below shows median household income, grouped by educational attainment of the household head. Households led by an individual 25 years of age or older with a bachelor’s degree or more have incomes that are considerably higher than the national median. Households led by an individual aged 25 or older 25 with less than a high school diploma earn less than half of the national median.
Median household income varies based on the educational attainment of the household head
| Educational Attainment of Household Head | 2021 Median Household Income |
|---|---|
| All education levels | $72,046 |
| No high school diploma | $30,378 |
| High school or equivalent | $50,401 |
| Some college, including Associate's degree | $64,378 |
| Bachelor's degree or more | $115,456 |
SOURCE: United States Census Bureau, Current Population Survey, 2021 Annual Social and Economic Supplements.
NOTE: The data above is for household heads who are 25 or older.
© 2022 Peter G. Peterson Foundation
The ASEC also gathers data on earnings, which includes wages and salaries, but excludes income sources such as public assistance and interest payments. In 2021, the median earnings for full-time, year-round male workers was about $10,000 higher than the median earnings for full-time, year-round female workers.
Male workers earn more than female workers
| Full-Time, Year-Round Workers | 2020 Median Individual Earnings (2021 Dollars) | 2021 Median Individual Earnings |
|---|---|---|
| Men | $64,217 | $61,180 |
| Women | $53,387 | $51,226 |
SOURCE: United States Census Bureau, Current Population Survey, 2021 and 2022 Annual Social and Economic Supplements.
NOTE: The differences between all of the values above are statistically significant at the confidence level used by the Census Bureau.
© 2022 Peter G. Peterson Foundation
Wealth is an Important Component of Americans’ Economic Status
When it comes to describing the financial status of Americans, income doesn’t tell the whole story. Income measures the flow of money and assets during a given period of time whereas wealth measures the stock of money and assets that have been accumulated as of a certain point in time. For example, a household with an income of $100,000 that saves $5,000 each year would have $25,000 of additional wealth at the end of five years.
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 2020 by education level. (SIPP data for 2021 have not yet been published.) It illustrates how net worth, on average, is higher for households with a higher level of educational attainment.
Household net worth varies by education
| Highest Level of Educational Attainment in Household | Median Net Worth in 2020 |
|---|---|
| No High School diploma | $4,685 |
| High School graduate | $41,1220 |
| Some college, no degree | $71,880 |
| Associate degree | $116,800 |
| Bachelor's degree | $233,700 |
| Graduate or professional degree | $459,800 |
SOURCE: United States Census Bureau, 2021 Survey of Income and Program Participation, public-use data.
© 2022 Peter G. Peterson Foundation
Related: CBO: Income Inequality Continues to Rise
Image credit: IP Galanternik D.U.