New Income Thresholds for Upper-Middle Class in New York, New Jersey, and Connecticut
In a recent study conducted by GoBankingRates, it has been revealed that an annual household income of at least $131,566 is now necessary to qualify as upper-middle class in New York state. This figure, while significant, is just a starting point when compared to the income thresholds set by neighboring states New Jersey and Connecticut, where residents need to earn even more to attain the same classification.
According to data from Pew Research, the definition of America’s middle class encompasses households that earn between two-thirds and twice the median income specific to their state. The GoBankingRates study utilized 2023 Census data to identify these income ranges, subsequently using the upper third of that spectrum to define what constitutes upper-middle class.
In New York, the spectrum of annual middle-class income falls between $56,385 and $168,156. Therefore, to be classified as upper-middle class, New Yorkers are required to earn a minimum of $131,566. This illustrates how even within a single state, the cost of living can dramatically influence financial classifications.
When looking at Connecticut, the situation becomes more demanding. There, families must have an annual household income of at least $145,849 to be considered upper-middle class. Meanwhile, New Jersey holds the highest threshold of the three states, where households need to earn a minimum of $157,189 to reach this economic status.
It’s important to note that living expenses can vary significantly not only between states, but also within them. For example, a resident of New York City may find that they need a much higher income to maintain a comfortable lifestyle compared to someone living in a smaller, more rural area of upstate New York.
Moreover, the tri-state area is not an isolated case within the United States. Several other states also impose substantial income requirements to qualify as upper-middle class. For instance, in Massachusetts, the threshold is set even higher at a minimum of $157,642, while Maryland tops the chart with the highest income requirement of $158,125. This is largely attributed to its proximity to Washington, DC, which is home to numerous affluent suburbs.
On the flip side, Mississippi stands out as the state with the lowest income requirement for upper-middle-class status, where a household needs to earn only $85,423 annually.
