Record High Household Income and Low Poverty Rate in 2025

New data from the US Census reveals that household income for Americans reached an all-time high in 2025, with the poverty rate declining to its lowest level ever.

Specifically, the real median household income rose by 2.6%, reaching $87,460. This marks the highest inflation-adjusted level since record-keeping began in 1967, surpassing the previous peak recorded in 2019.

Additionally, the median post-tax household income saw an increase of 3.1%, now sitting at $76,060.

This positive news comes amid a whirlwind of economic developments in the US and across the globe, addressing challenges like tariffs and international tensions.

Daniel Shoag, an economist and professor at Harvard, commented that these wage statistics signify ongoing economic growth. He noted, “We would expect income to keep going up. There was a spike during the pandemic followed by some declines, but now we’re beginning to see the effects of COVID lessen.”

Last year, the poverty rate decreased by half a percentage point to 10.2%, marking the second consecutive year of decline. In 2025, 34.5 million Americans were reported to be living in poverty.

For children specifically, the poverty rate fell to a historic low of 13.4%. The Census Bureau’s supplemental poverty line, which takes into account non-cash government benefits and taxes, was set at 13.1%. Under this measure, a family of four with an income below $32,649 qualifies as living in poverty.

The Census Bureau also indicated that rising medical costs pushed an additional 7.7 million individuals below the supplemental poverty threshold last year.

Health insurance coverage remained relatively stable in 2025, with most Americans insured for at least part of the year. Approximately 26.7 million people, or about 7.9% of the population, were without insurance, keeping the numbers near historic lows.

On the earnings front, women’s wages grew by 3.2% last year, while men’s earnings saw a slight dip. This has helped to narrow the wage gap, although women continue to earn roughly 84 cents for every dollar that men make.

Notably, the bulk of income growth was observed among higher earners, with the income of the top 10% of American earners increasing by 1.7%. In contrast, income for the bottom 10% remained quite stagnant. Households in the 90th percentile earned about $261,300, while those in the lowest 10th percentile made around $20,010.