What Percent of American Households Make More Than $200k?

Household income serves as a fundamental economic indicator, reflecting the financial health of residents within a housing unit. Understanding its distribution provides insights into economic well-being and societal structure. The U.S. Census Bureau collects and disseminates this data. Household income encompasses the combined gross income of all individuals aged 15 or older residing together.

Current Household Income Data

The U.S. Census Bureau defines household income as pre-tax cash income, including wages, salaries, self-employment earnings, interest, dividends, and various government benefits like Social Security and unemployment compensation. This definition generally excludes non-cash benefits such as food stamps or housing subsidies. According to the 2024 Current Population Survey Annual Social and Economic Supplement, approximately 10.9% of American households earned more than $200,000 annually in 2023.

The real median household income in the United States for 2023 was $80,610. This median figure represents the point where half of all households earn more and half earn less. Examining the percentage of households above $200,000 illustrates the upper end of the income spectrum.

Factors Shaping Income Distribution

Several factors influence income distribution across the United States. Educational attainment plays a significant role, as higher education often correlates with increased earning potential. Individuals with advanced degrees or specialized certifications typically access occupations with higher salaries.

Occupational choices and the job market also shape income levels. Professions in management, technology, and specialized healthcare often offer higher compensation due to demand for particular skills. Dual-earner households also contribute, as two incomes can significantly elevate a household’s total earnings. Economic growth rates affect job availability and earning opportunities.

Demographic and Geographic Differences

The proportion of households earning over $200,000 varies across demographic groups and geographic regions. Geographically, households in the West and Northeast tend to have higher median incomes than those in the Midwest and South. For instance, in 2023, Massachusetts reported a median household income of $99,900, while Mississippi’s median was $54,200. Certain metropolitan areas and their suburbs, like Sammamish, Washington (57.9%), and Bethesda, Maryland (48.7%), also show a high percentage of households exceeding $200,000. These variations reflect differences in local economies, industry concentrations, and the cost of living.

Demographic characteristics also show income disparities. Earning potential peaks in mid-career, with householders aged 35 to 44 often having the highest median weekly earnings. Educational attainment directly impacts income, as those with bachelor’s degrees or higher are more likely to be in top income brackets. Married-couple households generally have higher median incomes than other household types. In 2023, Asian households reported the highest median income at $112,800, followed by non-Hispanic White households at $89,050. Hispanic and Black households had lower median incomes, highlighting persistent disparities.

Historical Income Trends

Historical data reveals how the percentage of American households earning over $200,000 has evolved, using inflation-adjusted figures for comparison. In 1967, less than 2% of American households earned over $200,000 annually (in 2023 dollars). This proportion has steadily increased over the decades, reflecting economic shifts.

By 1992, the share of households earning at least $200,000 rose to 4.3%, and more than doubled to 11.9% by 2022. This trend indicates a growing segment of households reaching higher income tiers. Real median household income saw a significant annual increase in 2023, indicating recovery and growth. This progression reflects economic cycles, technological advancements, and shifts in the labor market.