According to recent data released by the Census Bureau, American households achieved a historic median income of $87,460 last year. However, this amount is only marginally higher than the previous record of $85,320 established in 2019.
When adjusted for inflation, this suggests that the average household has made minimal economic progress over the past six years, a period characterized by the disruptions of the pandemic and rising consumer prices. The Census Bureau noted that the median income level from 2019 was not exceeded until 2025.
Although the latest figures show an upward trend in income for Americans, it is important to point out that the typical household income in 2025 is only approximately 2.5% greater than that of 2019. In contrast, median household income increased by 19% in the six years leading up to the pandemic, from 2013 to 2019.
The Census report also highlighted that women’s earnings increased by 3.2% last year, while men’s wages experienced a slight decrease. This growth in women’s income has contributed to a reduction in the gender wage gap; however, women still earn roughly 84 cents for every dollar earned by men, a rise from less than 81 cents in 2024.
Additionally, the Census data may reflect the effects of tax reforms introduced under the “One Big Beautiful Bill” act (OBBBA), which was signed into law by President Trump in July 2025. Tax specialists indicate that high-income brackets and corporations largely benefited from the tax reductions contained in this legislation.
The top 10% of earners witnessed a 1.7% increase in their incomes last year, bringing their earnings to $261,300, while the lowest 10% saw a slight decrease to just over $20,000, according to the Census Bureau.
“It is significant that while median incomes for top earners are rising, those for the lowest earners remain stagnant,” stated Kristin Seefeldt, an associate professor of social work and public policy at the University of Michigan, in an email. “The tax code has been modified to reduce marginal tax rates for everyone, yet it is evident that the top earners are reaping the benefits.”
Last year, the official poverty rate in the U.S. decreased by 0.5 percentage points, landing at 10.2%. Some public policy analysts have warned that the effects of OBBBA’s cuts to social safety net programs may not be visible until the Census reports on income and poverty statistics for 2026, which are expected to be released in 2027.
The OBBBA introduced new limitations on Medicaid and food stamp programs, with the latter experiencing a significant drop in enrollment in 2026.
“Although the poverty statistics appear favorable—particularly regarding child poverty—these figures do not account for the benefit cuts that began to take effect at the start of 2026,” remarked Amanda Nothaft, director of data and analysis at the University of Michigan’s Poverty Solutions.
Edited by Alain Sherter. The Associated Press contributed to this report.
