US Household Income Climbs 2.6% to Record High

By Mintesinot Nigussie  |  September 16, 2026

Median household income in the United States rose 2.6 percent in 2025 to 87,460 US dollars, reaching its highest level since the US Census Bureau began recording the measure in 1967.

The increase from 85,210 US dollars in 2024 came alongside a decline in the official poverty rate, which fell 0.5 percentage points to 10.2 percent. Some 34.5 million people remained below the official poverty threshold during the year.

The income gain, however, was not evenly distributed across demographic groups. Median income increased 3.0 percent for White households and 4.8 percent for Black households, while changes for Asian and Hispanic households were not statistically significant.

The Census Bureau said overall income inequality, measured by the Gini index, was not significantly different from 2024. Income at the 90th percentile increased 1.7 percent, while income at the 10th percentile showed no statistically significant change.

Median post-tax household income, which accounts for federal and state taxes, tax credits and payroll taxes, increased 3.1 percent to 76,060 US dollars from 73,760 US dollars in 2024.

The official poverty measure is based on pretax money income and does not include tax credits. A separate Supplemental Poverty Measure, which factors in taxes, government benefits, work and medical expenses and geographic differences in housing costs, stood at 13.1 percent in 2025, statistically unchanged from the previous year.

The poverty rate for children fell to a historic low of 13.4 percent, while the rate among Hispanic people declined to a historic low of 13.9 percent.

Social Security remained the largest programme reducing poverty under the Supplemental Poverty Measure, lifting 28.8 million people out of poverty in 2025, according to the Census Bureau.

The latest data also showed little change in health insurance coverage. Some 26.7 million people, or 7.9 percent of the US population, were uninsured for the entire year in 2025, a rate that was not statistically different from 2024.

Employment-based insurance remained the largest source of coverage, covering 53.5 percent of the population for some or all of the year. Medicare covered 20.1 percent, while Medicaid covered 17.1 percent.

The figures are based on the Census Bureau’s 2026 Current Population Survey Annual Social and Economic Supplement, which collects information on income, poverty and health insurance coverage for the preceding calendar year.

The Census Bureau cautioned that the survey’s weighted response rate fell to 61.3 percent in 2026 from 62.0 percent the previous year. The bureau said adjustments to survey weights are used to account for nonresponse and maintain the representativeness of the estimates.

Source: FSX Business News