The upper middle class earns more than the typical American, and has disposable income to live a nice lifestyle – although they aren’t rich in the sense that they don’t have to worry about money or work for it.
ScienceDirect defines it as a social group within the middle class that includes wealthy property owners, entrepreneurs, individuals with high salaries, and highly educated professionals.
The household income you need to break into the upper middle class in America varies by state, and the average is $122,171 per year, according to a GoBankingRates analysis of Census data. Since the median household income in this country is $78,538, that’s quite a bit more than most people earn.
In the 19 poorest states in America, your household salary can be below $122,171— and sometimes well below it — and you would still be classified as upper middle class.
Here’s how much you’d need to earn in these 19 states, along with some details on how you can move yourself up financially no matter where you live.
According to GoBankingRates, this is the annual household income you would need to be in the upper middle class in the poorest U.S. states.
Mississippi: $85,424 to $109,830
Louisiana: $93,370 to $120,046
New Mexico: $96,640 to $124,250
West Virginia: $90,094 to $115,834
Kentucky: $97,094 to $124,834
Arkansas: $91,426 to $117,546
Alabama: $96,487 to $124,054
Oklahoma: $98,939 to $127,206
South Carolina: $103,940 to $133,636
Tennessee: $104,374 to $134,194
Texas: $118,677 to $152,584
Georgia: $116,145 to $149,328
Ohio: $108,392 to $139,360
North Carolina: $108,741 to $139,808
Michigan: $110,677 to $142,298
Arizona: $119,580 to $153,744
Missouri: $107,210 to $137,840
Florida: $111,551 to $143,422
Nevada: $117,540 to $151,122
Read more: Trump warns his tariffs will spark a ‘disturbance’ in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP
As you can see, many of these states are in the South, where the cost of living tends to be much lower. In Mississippi, for example, Bestplaces reports a family needs just $29,880 per year to live comfortably, which is 53.9% less expensive than the national average.
Housing, transportation, and childcare all come at a lower cost in Mississippi than in many parts of the country, making it easier to afford to live on less. Because of the lower cost of living, salaries on the whole tend to be lower, with the median household income coming in at $54,915 in the state.
Since wages and costs are lower, it’s not a surprise that you don’t need to earn as much to be in the upper middle class. And this trend holds true for the other low-cost states on this list as well.
Whether you live in one of these poorer states or you live in a rich one, it’s always a worthwhile goal to try to increase your income as much as possible. That’s not to compete with your peers, but because more disposable income helps you to secure your financial future and live a life free of money worries.
Fortunately, there are many ways to increase what you earn and set yourself up for a better life.
One of the best ways to do that is to get more education, either by going to school for longer or by participating in training programs at work. If you can pursue advanced education, aim to do that when possible. For 25- to 34-year-olds who worked full time, year round, the median earnings of those with a master’s or higher degree ($80,200) were 20% higher than the earnings of those with a bachelor’s degree ($66,600) as their highest level of attainment, according to the National Center for Education Statistics.
You can also consider working a side gig to bring in extra income, or developing multiple streams of income, such as investing in real estate or dividend-paying stocks.
Simply negotiating your salary when you get hired or when you look for a new job can also make a huge difference, as Pew Research reported in 2023, among workers who did ask for higher pay, 28% said they were given the pay they asked for and 38% said they were given more than was originally offered but less than they had asked for.
By taking these steps, hopefully you can break into the upper middle class, or even become rich, depending on where you live. It’s well worth the effort, as the more you earn, the higher your Social Security checks and the more money you can save and invest during your lifetime to build the financial security you deserve.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
