This is considered middle class income in California, study shows (2024)

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This is considered middle class income in California, study shows? ›

In California, the middle-class household income ranges between $61,270 to $183,810, a nearly 50% increase from where it stood in 2012 when it was $40,933 to $122,800. The Golden State had the fourth-highest income increase needed to be considered middle class.

Data comes from the U.S. Census Bureau for 2022. To learn more about this study, tap or click here. A separate study by Consumer Affairs published last month tabulated the minimum annual income required for a family of four to be considered middle class in each state, and in California, that income is $69,064.

How much does an Upper Class make? As of May 22, 2024, the average annual pay for the Upper Class jobs category in the United States is $59,699 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.70 an hour.

While California ranks third-most expensive for a single adult to live comfortably at $113,652, it only ranks fifth-most expensive for two working adults raising two children. The total family income should be at least $276,724 in the latter case.

As of 2/10/2023 the IRS has changed their guidance on these state tax refunds including the California Middle Class Tax Refund. You can review that IRS notice here. This income is no longer taxable and you will not report the amount on your federal return.

You also need an annual household salary of at least $50,000 to be considered middle class in 17 other states, including California, New York, Oregon, Washington, Utah and Hawaii. In California, the difference is $122,000, from a salary of $61,028 on the lower end to $183,102 on the upper end.

Income Ranges and Tax Policies

A general consensus among economists suggests that an annual income between $25,000 and $100,000 falls within the middle-class category.

A family of four in California needs to earn nearly $70,000 annually to still be considered middle class in 2023, according to a new report by ConsumerAffairs.

What is upper class income in California? ›

As of May 23, 2024, the average annual pay for the Upper Class jobs category in California is $58,538 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.14 an hour. This is the equivalent of $1,125/week or $4,878/month.

Is $40,000 a year considered middle class? According to Pew Research, a middle-class family of three makes between $56,000 and $156,000. Families of that size who bring in $40,000 a year would not be considered middle class.

Lower middle class: Those in the 20th to 40th percentile of household income, between $28,008 and $55,000. Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744.

What is the average middle class income? In 2024, a large U.S. city's middle-class income averages between $52,000 and $155,000, with the median household income across all 345 cities at $77,345, making middle-class income limits fall between $51,558 and $154,590, SmartAsset noted.

In California, the middle-class household income ranges between $61,270 to $183,810, a nearly 50% increase from where it stood in 2012 when it was $40,933 to $122,800.

A $100,000 salary may be considered middle-income in many parts of the U.S., but it's no longer a ticket to the middle class.

Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range. "The upper middle class has grown...and its composition has changed.

New study breaks it down. How rich is rich in California? As of 2022, the top 5% of earners in the state made $613,602 a year on average, according to a recent analysis from personal finance site GoBankingRates. That's roughly a 37% increase from 2017, when top earners raked in an average annual income of $447,207.