Household income hits record, but lower earners lose ground
Summary
U.S. household income reached a record high in 2025, with median income rising and poverty rates falling slightly. However, low-income households saw little improvement, and many people still face financial challenges, especially due to medical costs and uneven income growth.Key Facts
- Median household income rose 2.6% to $87,460 in 2025, the highest since 1967.
- After taxes, median household income increased 3.1% to $76,060.
- The official poverty rate fell slightly to 10.2%, about 34.5 million people.
- Child poverty dropped to a record low of 13.4%, and Hispanic poverty fell to 13.9%, the lowest since tracking began.
- The richest 10% earned about $261,300, over 13 times the $20,010 earned by the poorest 10%.
- Income gains mainly went to higher earners; the bottom 10% saw no significant income change.
- Black American household income rose 4.8%, white income rose 3%, while Asian American income stayed about the same.
- Medical expenses pushed an estimated 7.7 million more people below a broader poverty measure that includes taxes and costs.
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