Household Income Reaches a Record
Median household income in the United States rose 2.6% in 2025 after adjusting for inflation, according to the Census Bureau. It reached a record $87,460.
That figure surpassed the 2019 median of $85,320, finally placing typical household earnings above their pre-pandemic level. Half of households earned more than the median, while half earned less.
The improvement means that purchasing power recovered despite several years of rising prices. However, the limited progress helps explain continued dissatisfaction with the economy and concerns about affordability.
Inflation Limits Long Term Progress
Household income increased only 2.5% between 2019 and 2025. By comparison, it rose 19% during the previous six-year period, when inflation remained low and unemployment declined.
Women’s earnings grew 3.2% last year, while men’s earnings fell slightly. This improvement narrowed the gender wage gap, but women still earned nearly 84 cents for every dollar earned by men.
In 2024, women earned less than 81 cents for each dollar earned by men. The latest figures therefore showed meaningful progress without eliminating the broader difference in pay.
Income Gaps Remain Wide
Economic inequality stayed high even as inflation-adjusted earnings increased for most Americans. The highest-earning tenth received $261,300, while the lowest tenth earned slightly more than $20,000.
Top households earned more than 13 times the income of the poorest group, compared with 12.7 times in 2024. The record ratio was 13.5 in 2021.
Asian households reported the highest median income at $126,300. White households reached $96,710, Hispanic households earned $73,260, and Black households recorded $59,980.
Black households experienced the largest annual increase at 4.8%. Gains reached 2.9% for White households, 1.6% for Asian households, and 1.1% for Hispanic households.
Census income calculations include wages, investment income, Social Security, and unemployment payments. They exclude non-cash assistance such as food aid and Medicaid.
References
Rugaber, C. (2026, September 15). American incomes finally top pre-pandemic levels, fighting against inflation all the way. AP News. https://apnews.com/article/income-inflation-poverty-earnings-97b2e23e7698db95efa42366c1ad6a33