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The middle class is a diverse group, with the upper-middle class occupying the top tier. Determining if you belong to this category can be confusing.
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But what is the income threshold for being considered upper-middle class, especially in 2025? GOBankingRates has analyzed the numbers and outlined what it takes to achieve this status in the coming year.
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The Minimum Income for Upper-Middle Class
To be in the top 20% of the middle class, you need to earn between $106,092 and $149,160, depending on your location, according to a recent study by GOBankingRates.
“For example, to qualify for the Affordable Housing Program in San Francisco, an income of $104,000 or less is required,” explained Sarah Maitre, a Chartered Financial Analyst (CFA), financial planner, and founder of Camriel Advisors. “However, the same income level would place someone in a rural community a few hours from San Francisco in the upper middle class.”
While pinpointing an exact salary for the upper-middle class can be challenging, Maitre indicated that certain lifestyle indicators can provide insight.
“I define upper-middle class as the ability to afford a comfortable home for your family’s size, own cars less than five years old, provide childcare for all children (or have one spouse not working), and take at least one annual family vacation,” she said. “All of this can be achieved without compromising on saving for college, retirement, etc.”
In contrast, she noted that finances are typically tighter in the true middle class.
“I define middle class as being able to afford most of these things, albeit with some financial strain, possibly foregoing the annual vacation but managing to make ends meet,” she explained. “You’re not living paycheck to paycheck, but you are more mindful of spending, opting for a Kia rather than a Tesla.”
If you are currently living a middle-class lifestyle and aspire to move up the income ladder, there are avenues for advancement.
“Transitioning from middle class to upper-middle class is achievable, and there are various strategies to make it happen,” she advised. “The key is to analyze your household cash flows and determine whether you can increase income or reduce spending.”
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Boost Your Household Income
“Increasing income can be challenging but has a significant impact on mobility,” Maitre noted. “This may involve negotiating a raise at work, changing jobs, taking on a second job, or exploring
Starting in a good place, there are other areas that can have a bigger impact, like subscription services and dining out regularly,” she mentioned. Begin Your Home Saving Journey Moving up to the upper-middle class is not a race. If you rush to purchase a home without being fully financially prepared to own it, this could hinder your progress. “Be patient and consider renting to avoid overspending on a home,” advised Brian Blakeman, founder and financial adviser at Onward Financial Advising LLC. “Focus on building cash reserves and investing in non-real estate assets, such as retirement accounts.” Consider Twice Before Using Credit Using a credit card is fine, as long as you pay off the balance in full each month. Otherwise, you might impede your progress towards achieving upper-middle class status. “Track your income and cash flow for at least six weeks to ensure your income covers your credit card expenses,” Blakeman recommended. “If you find yourself dipping into savings to settle credit card bills, cut back on spending.” Be Thoughtful With Extra Money Receiving a windfall, a raise, or a discount on an expense may tempt you to spend it without much consideration, but this won’t benefit your finances. “Have a plan ready for when extra money comes your way,” advised Blakeman. “By planning ahead on how to use it, you can ensure that your money contributes to your financial future and keeps you ahead.” While not splurging with the money may feel disappointing momentarily, in the long run, you will not regret making the financially savvy decision. More Insights from GOBankingRates I’m a Realtor: Why No One Wants To See Your Home 3 Things Retirees Should Stop Buying To Save Money Amid Tariffs How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too 7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month This article was originally published on GOBankingRates.com: Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
