What Salary Is Considered Low Income in the US?

The concept of “low income” in the United States is not defined by a single, universal figure. Instead, it represents a dynamic measure with various definitions that depend heavily on the specific context and purpose of its application. These diverse definitions are fundamental for understanding eligibility criteria for a wide array of support programs and services across the nation. Recognizing these distinctions is important for individuals seeking assistance, as the applicable income threshold can vary significantly.

Federal Poverty Guidelines

The Department of Health and Human Services (HHS) annually issues the Federal Poverty Guidelines (FPG), serving as a national benchmark for defining poverty. These guidelines are typically released each year in mid-January and provide a baseline measure of economic hardship. The FPG vary based on household size, reflecting that larger families generally require more income to meet basic needs. For example, in 2025, the FPG for a single person in the 48 contiguous states and the District of Columbia is $15,650 annually. A family of four is set at $32,150.

These guidelines are rooted in poverty thresholds originally developed in the 1960s. The HHS updates these guidelines annually to adjust for inflation, primarily using the Consumer Price Index. The FPG are national standards and do not inherently adjust for differences in the cost of living across various regions. Higher guidelines are established for Alaska and Hawaii to account for their elevated living expenses. These guidelines serve administrative purposes, determining eligibility for numerous federal programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and the Low-Income Home Energy Assistance Program (LIHEAP).

Area Median Income and Housing Program Thresholds

Another significant measure for defining income is the Area Median Income (AMI), which the Department of Housing and Urban Development (HUD) calculates annually. AMI represents the midpoint of the income distribution for a specific metropolitan area or non-metropolitan county, meaning half of the households in that region earn more and half earn less. This figure is important because it accounts for substantial variations in the cost of living across different geographic locations. HUD determines AMI using data from the U.S. Census Bureau’s American Community Survey (ACS), adjusted for inflation.

AMI is used to establish eligibility for HUD-assisted housing programs, including Public Housing, Section 8 Housing Choice Vouchers, and the Low-Income Housing Tax Credit program. These programs categorize income levels as percentages of the local AMI. “Low-income” is generally defined as income not exceeding 80 percent of the AMI for the area, “very low-income” thresholds are 50 percent of the AMI, and “extremely low-income” applies to households whose income does not exceed the greater of 30 percent of the AMI or the Federal Poverty Guidelines. These AMI percentages are further adjusted based on household size, acknowledging that larger families require higher income limits. Regional differences in AMI mean that a salary considered low income in a high-cost urban area might be considered moderate or even high income in a more rural or less expensive region.

State-Specific and Other Program-Based Income Definitions

Beyond the broad federal frameworks of the Federal Poverty Guidelines and Area Median Income, many states, counties, and individual assistance programs establish their own specific definitions of “low income.” These localized definitions may sometimes utilize a percentage of the FPG or AMI, or be based on distinct criteria or specific income brackets set by state legislation or program rules. For example, state-funded health insurance programs often extend beyond the Federal Poverty Guidelines, with many states setting Medicaid eligibility at 138% of the FPL. Programs like the Supplemental Nutrition Program (SNAP) use 130% of the FPL, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) caps eligibility at 185% of the FPL.

Other programs, such as the Lifeline program for affordable communication services, consider income at or below 135% of the FPG. Childcare subsidies, local utility assistance programs, and certain educational grants often feature their own unique income requirements tailored to their specific goals and target populations. These varied definitions underscore the importance for individuals to research the precise eligibility requirements for any program. While federal guidelines provide a foundation, the actual income considered “low” can vary widely depending on the specific program and the geographic location.