The Blubber

What it takes to feel “rich” in America has shifted dramatically: making close to $200,000 a year doesn’t even qualify as upper-class in some states anymore. The label of “wealthy” is becoming increasingly reserved for the ultra-elite—those among the top 1% earning millions.

A new analysis by SmartAsset, based on 2023 U.S. Census Bureau data, found that households earning $199,000 annually in states like Massachusetts and New Jersey are still classified as middle-class.

Even in Mississippi—the state with the lowest middle-class income threshold in the nation—households need to bring in over $108,000 to be considered well-off.

The middle-class income range is vast, covering roughly 52% of U.S. workers. In some states, the floor starts at just over $36,000, while in others, it stretches nearly to $200,000. Yet across the board, earning $100,000 is no longer enough to be considered upper-class—and for many, it’s barely enough to stay afloat.

Why the Middle Class Doesn’t Feel Middle-Class Anymore

Once associated with financial security and aspirational living—think large homes, new cars, and a healthy savings cushion—a six-figure salary now often barely covers the essentials.

In 2022, more than half of Americans earning over $100,000 reported living paycheck to paycheck, a 7% increase from the year before, according to a 2023 report by PYMNTS and LendingClub.

Several factors are behind this squeeze. The SmartAsset study points to soaring inflation and uneven salary trends across the country. Some workers are even experiencing wage deflation. Data from the Atlanta Fed shows that employees who stayed in their jobs saw average wage growth of 4.6% in early 2024, while job switchers only did slightly better at 4.8%—diminishing the once-reliable strategy of jumping companies for better pay.

At the same time, the cost of living has skyrocketed. Grocery staples like eggs have surged by more than 60%, and housing prices remain prohibitively high in many areas. What was once a given for middle-class households—being able to keep up with basic expenses—no longer holds true. A 2024 survey by Primerica found that 65% of middle-income families say their earnings are falling short of covering their cost of living.