Who Counts as Middle Class and Upper Middle Class in America Today?

At a Glance

• • Income & Net Worth Benchmarks – The upper middle class is typically defined as households earning $145K–$235K annually or having a net worth of $658K–$1.9M, though exact ranges vary. 
• • Location Matters – What qualifies as upper middle class depends heavily on cost of living; for example, $85K may feel upper middle class in Mississippi, while in New York or San Francisco, it often requires $200K+. 
• • Path to Growth – Building and sustaining upper middle class status comes from increasing income, investing in real estate for passive cash flow, and using tax-efficient strategies to accelerate wealth.

When you ask Americans whether they’re middle class, most will say yes. In fact, according to a Pew Research survey, only 10% of Americans identify as lower class, and just 1% identify as upper class. But in reality, “middle class” and “upper middle class” are fluid terms that depend on income, net worth, and perhaps most importantly where you live.

With the economy shifting rapidly, inflation changing the value of money, and wealth disparities widening, it’s worth asking: Who really counts as middle class or upper middle class in the U.S. today?

Defining Class by Net Worth

One of the clearest ways to measure class status is by net worth. Economists often define the upper middle class as those in the 75th to 90th percentile of wealth.

• • 75th percentile net worth (U.S.): $658,340
  • 90th percentile net worth (U.S.): $1,920,758

That means if your household net worth is between roughly $658,000 and $1.92 million, you fall into the “upper middle class” category by wealth.

What is Net Worth?

Net worth is simply the value of your total assets (cash, real estate, investments, cars, etc.) minus your debts and liabilities.

Example:

• • Assets: $1,000,000 (home equity, investments, savings, etc.)
  • Debts: $300,000 (mortgage, loans, credit cards)
  • Net worth = $700,000

In this example, the household would fall squarely into the upper middle class bracket.

Defining Class by Income

Household income is another common way to categorize middle vs. upper middle class. Using the same percentile ranges (75th to 90th):

• • 75th percentile income (U.S.): ~$145,000
  • 90th percentile income (U.S.): ~$235,000

So, an American household earning between $145,000 and $235,000 per year would be considered upper middle class by income.

A Broader Definition of Middle Class

GoBankingRates, in a 2025 study, defined middle class as households earning two-thirds of the median income up to double the median income.

• • Median household income (2023 Census Bureau): $80,610
  • Lower middle class threshold: $54,000
  • Upper middle class threshold: $161,000

That puts the “middle class” range at $54,000 to $161,000, with anyone above $161,000 landing in the upper middle class category.

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Location Matters: Manhattan, Kansas vs. Manhattan, New York

Income and net worth don’t stretch equally across the country. What feels like an upper middle class lifestyle in rural Kansas may barely cover rent in Manhattan, New York.

Example:

• • In Mississippi, the threshold for upper middle class is just $85,400 in annual household income.
  • In expensive coastal cities like San Francisco or New York, a family may need well over $200,000 to maintain what feels like a middle class lifestyle.

This geographic disparity explains why almost everyone thinks of themselves as middle class—it’s largely relative.

How to Move Into the Upper Middle Class Faster

If you’re not in the upper middle class yet, here are proven strategies to accelerate the process:

1. Increase Household Income

The most direct way is to earn more money. That may mean negotiating raises, changing careers, starting a side hustle, or a spouse returning to work.

2. Invest Wisely for Higher Returns

Passive and active real estate investing can accelerate wealth growth while hedging against inflation. Investments like syndications, real estate funds, or private equity deals often generate 8–16% annual returns, along with tax advantages.

3. Create Multiple Passive Income Streams

Adding cash flow through rental properties, syndications, or debt notes helps boost household income and net worth simultaneously.

4. Use Leverage to Multiply Gains

Real estate allows investors to leverage other people’s money (OPM) through mortgages. A modest 4% property appreciation can translate into 20%+ returns on your invested cash when leveraged correctly.

5. Apply the “Infinite Return” Strategy

Through refinancing or syndications, you can pull your original investment back out while still owning the asset—allowing you to reinvest the same capital again and again.

6. Optimize Taxes with Tools Like the “Lazy 1031 Exchange”

Instead of complicated 1031 exchanges, investors can reinvest in new syndications and use bonus depreciation to offset gains—effectively deferring taxes indefinitely.

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Final Thoughts: Class is Fluid, But Wealth-Building is Within Reach

Middle class, upper middle class, and even millionaire status all look different today than they did a generation ago. With inflation, regional differences, and evolving lifestyles, the definitions remain fluid.

But one thing is clear: growing your income and net worth through smart investments especially in real estate can move you upward faster. Whether your goal is stability, comfort, or financial independence, building multiple income streams and leveraging tax strategies will help you get there.

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Sources

https://www.pewresearch.org/

https://www.census.gov/

https://www.federalreserve.gov/econres/scfindex.htm

https://www.gobankingrates.com/

https://www.bls.gov/

https://www.nar.realtor/research-and-statistics