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Economic Outlook

Income and Wealth in the United States: An Overview of Recent Data

Last Updated December 6, 2024

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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:

Below are several measures of income and wealth from those three surveys. The data depicts money income, which is pretax money before the application of tax liabilities or credits.

Household Income Levels Vary Across Geography

According to the ASEC, median household income was $80,610 in 2023, which is about a 4 percent increase from the median household income in 2022. Looking at data for national averages, 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 states, the District of Columbia, and Puerto Rico. The table below shows the wide discrepancy in household incomes across the United States in 2023. The median household in the District of Columbia, the surveyed location with the highest income, had an income that was four times that of the median household in Puerto Rico, the surveyed location with the lowest income.

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 such workers, the median income was $61,440 in 2023, a 2 percent decline from the year prior.

The table below shows a worker’s median income grouped by race and ethnicity. In 2023, 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 2023, the median earnings for full-time, year-round male workers was about $12,000 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 the financial status of Americans, income does not tell the whole story. Income measures the flow of money and other assets during a given period whereas wealth measures the stock of money and other assets that have accumulated by a certain point in time. For example, a household 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 2022 by education level. (SIPP data for 2023 have not yet been published.) It illustrates how net worth, on average, is higher for households with a higher level of educational attainment.

The ASEC, ACS, and SIPP contain data for many more demographic categories, such as occupation, family structure, marital status, and number of children. Such data highlights variations among populations in the United States and can help lawmakers evaluate policies to address such differences.

 

Image credit: IP Galanternik D.U.

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