What Is the Middle Class?
The middle class is a socioeconomic category used to describe people and families with incomes that fall into the median range for the geographic area they live in. The definition is not precise, but generally, middle-class people in the United States viewed as having sufficient means to live a comfortable lifestyle:
- Are white-collar professionals or run their own businesses
- Tend to have college degrees
- May own their own homes
- Have adequate health insurance
- Have some disposable income after all basic needs are met
- Are saving toward retirement
In the U.S., people and households are often categorized as working class, middle class, or upper class. Calculations vary widely, but more than half of Americans are usually classified as middle class.
Key Takeaways
- The middle class is a socioeconomic strata that falls in between the working class and the upper class.
- The middle class constitutes about half of the U.S. population, but it has shrunk over nearly half a century.
- Those in the middle class have enough disposable income to afford minor luxuries like vacations or restaurants but rely on borrowing for big-ticket items like homes and cars.
The Mid-Level Caste
In India’s traditional caste system, the mid-level caste was made up of farmers, traders, and merchants. The lowest caste designation, that of the “untouchables,” was abolished in 1950.
Understanding the Term "Middle Class"
The well-being of the middle class is a powerful motivator in American politics, and policies addressing their economic welfare are a cornerstone of political debate.
Today’s middle-class families tend to own their own homes (although with a mortgage), own a car (with a loan or lease), send their kids to college (although with student loans or scholarships), are saving to retire, and have enough disposable income to enjoy some luxuries like dining out and vacations.
The term “middle class” itself has shifted in meaning over time. It once referred to people who had the means to rival nobles in their living standards. The contemporary meaning is more akin to the upper end of the working class.
Karl Marx referred to the middle class as part of the bourgeoisie (i.e., the petit bourgeoisie or small business owners) when he described how capitalism operates in opposition to the working class, which he termed the “proletariat.”
In recent years, there has been talk of a disappearing middle class in modern society, as income inequality has tended to “hollow out the middle” and largely benefit the ultra-rich 1%.
$145,914
The median income needed for a middle-class lifestyle in Frisco, Texas, in 2024, according to SmartAsset.
Who Is Middle Class in America?
The birth of the American middle class, in some respects, has been linked to federal funding and support through programs such as the G.I. Bill, which paid for education and business ventures created by veterans. The combination of incentives and salary increases helped elevate working-class citizens into the middle class.
The income parameters that define the middle class continue to change, and not solely based on the rate of inflation. Regional disparities in income and the cost of living mean that salary-based measures of the middle class can vary greatly.
Different income barometers describe the middle class as having income from $50,000 to $150,000 or, in some instances, $42,000 to $125,000. Other measures of the middle class set the upper-income mark at $250,000.
A $26 Minimum Wage
If wages increased at the same rate as labor productivity since 1968, the hourly minimum wage would now be $26, according to the Center for Economic and Policy Research. The federal minimum wage is $7.25 an hour.
Twenty-one U.S. states raised their minimum wage on Jan. 1, 2025.
Characteristics of the Middle Class
The concept of middle-class society often includes a presumption of an income that supports owning a residence and having the discretionary income for flexible expenses such as travel or dining out.
While it is assumed that middle-class households generate sufficient income for retirement savings along with standard expenses, an increasing segment of this portion of the American population is living paycheck to paycheck.
An ideal commonly held among the middle class is that it is possible to increase their income to higher economic strata through career advancement and salary upgrades. The pace of such upward mobility aspirations, however, has changed over the decades with the costs of goods and services, in some cases outpacing the growth of salaries.
Which Job Might Be Held by Someone in the Middle Class?
In the U.S., the term “middle class” is almost synonymous with “white collar.” A person who works in an office and is required to wear a business suit qualifies. A professional with a job that requires technical skills in law, medicine, computing, finance, education, or publishing is considered middle class even if they have to endure a few years of low entry-level salaries to live a middle-class lifestyle.
What Income Is Considered Middle Class?
The boundaries of a middle-class income in the U.S. vary by location, due to the great geographical differences in the cost of living in the U.S.
One 2024 analysis, by SmartAsset, sets the highest range at $113,176 to $339,562 in Sunnyvale, California. The lowest range, for Detroit, Michigan, was $24,300 to $72,906.
How Large Is the Middle Class?
About half of Americans could be considered middle class as of 2023. That is the smallest percentage in a half-century.
How Much Should the Average Middle-Class Person Save for Retirement?
As a rule of thumb, many financial advisors recommend saving at least three times your annual income by the end of your 30s. Since the median income for a 35-year-old as of 2024 is $63,000, that means saving around $189,000.
The Bottom Line
The middle class is the economic stratum between the working class and the wealthy. In the United States, the middle class occupies about half of the population, mainly consisting of people who work in white-collar professions, run small businesses, or are in skilled trades.
The middle class has declined since the 1970s, due to the loss of highly paid manufacturing jobs and increasing economic inequality.
