Americans' incomes hit a record high in 2025. Now for the bad news.
Summary
In 2025, American households earned a record median income of $87,460, slightly higher than in 2019 when adjusted for inflation. While incomes for women rose and the poverty rate fell slightly, income growth was mainly seen among the wealthiest families, and the poorest households saw little improvement.Key Facts
- Median household income in 2025 was $87,460, just 2.5% above the 2019 level of $85,320 after adjusting for inflation.
- From 2013 to 2019, median income increased by 19%, much faster than in the recent six years.
- Women’s pay increased by 3.2% in 2025, narrowing but not closing the wage gap; women earned about 84 cents for every dollar men made.
- Men’s income slightly declined in 2025.
- The top 10% of earners saw their income rise by 1.7% to $261,300, while the bottom 10% had a small income decrease to just over $20,000.
- The U.S. poverty rate dropped by 0.5 percentage points to 10.2% in 2025.
- Tax changes under the "One Big Beautiful Bill" act, signed by President Donald Trump in 2025, benefited high-income earners and corporations the most.
- Cuts to social programs like Medicaid and food stamps started in 2026, which may affect poverty and income data in future reports.
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.