US Household Incomes Hit All-Time High, Poverty Falls to Record Low: Census Bureau

U.S. households registered their highest income levels ever last year, while the poverty rate fell to a record low, new government data released on Sept. 15 showed.

The median household earned $87,460 in 2025, according to the Census Bureau. After adjusting for inflation, that is the highest number since 1967, when the federal agency began tracking the data.

Post-tax median household income rose more than 3 percent from 2024 to $76,060.

Other demographics recorded different gains last year. Black households posted a nearly 5 percent increase in median income. By comparison, median incomes for white households edged up 3 percent. There was no sizable change for Asian or Hispanic households.

Full-time male workers did not log a gain, but women enjoyed a 3.2 percent jump in wages.

Over the last few years, economists have often referenced the K-shaped economy, meaning that certain groups perform better than others.

The Census Bureau’s annual income data showed the top 10 percent of households saw their earnings rise by nearly 2 percent to above $261,000. By comparison, the bottom 10 percent recorded a modest decline, earning approximately $20,000 last year.

These statistics do not include capital gains from the stock market, which posted record highs last year and typically benefit high-income earners the most.

Poverty levels also fell to a record low. Officials described poverty for a two-adult, two-child family as being less than $32,649.

The official poverty rate dipped by 0.5 percentage points to an all-time low of 10.2 percent, and the rate for children declined to a historic low of 13.4 percent. Additionally, the supplemental measure of poverty—which accounts for noncash government benefits and taxes—changed little last year, at 13.1 percent.

In total, 34.5 million people were in poverty last year.

Cost of Living Challenges

Despite the positive news, many Americans have soured on current economic conditions as the war in Iran, now approaching its seventh month, rekindles inflation.

The University of Michigan’s preliminary September Consumer Sentiment Index weakened sharply, with respondents expecting heightened cost pressures on their household budgets due to rising fuel prices and trade tensions.

As of Sept. 15, the national average for a gallon of gasoline is $4.33, according to the American Automobile Association. This is up 36 percent from $3.18 a year ago.

Ballooning energy costs have revived headline consumer inflation. The annual rate—whether measured by the Consumer Price Index or the Federal Reserve’s preferred Personal Consumption Expenditures Price Index—is firmly above 3 percent.

Renewed cost-of-living challenges have eaten away at workers’ paychecks.

Real (inflation-adjusted) wage growth had strengthened in the months leading up to the Iran conflict. However, according to the Bureau of Labor Statistics, real average hourly and weekly earnings have stalled.

At the same time, consumers are still opening their wallets, although they are more cost-conscious and seeking better value, new research from Bank of America suggests.

Consumer spending remained resilient in August, with total card spending rising by 0.9 percent from the previous month.

“Household finances also remain healthy, with credit card utilization declining across most age and income cohorts,” the report stated. “Lower- and middle-income households still hold elevated deposit balances across all age groups, suggesting spending should remain resilient.”

With just seven weeks until the midterm elections, President Donald Trump and the Republicans will try to convince voters that they are better off now than they were under the previous administration.

So far, many Americans are unconvinced, as scores of polls show the president underwater on his handling of the economy.

RealClearPolitics’ Poll Average—as of Sept. 15—suggests the Democrats have an eight-point lead over the GOP in the 2026 generic congressional vote.